(Mark One) | ||
ý | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the fiscal year ended December 31, 2016 | ||
OR | ||
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
ENGLAND AND WALES (State or Other Jurisdiction of Incorporation or Organization) | 98-1030901 (I.R.S. Employer Identification No.) | |
122 LEADENHALL STREET, LONDON, ENGLAND (Address of principal executive offices) | EC3V 4AN (Zip Code) | |
+44 20 7623 5500 | ||
(Registrant’s Telephone Number, Including Area Code) Securities registered pursuant to Section 12(b) of the Act: | ||
Title of Each Class | Name of Each Exchange on Which Registered | |
Class A Ordinary Shares, $0.01 nominal value | New York Stock Exchange |
Large accelerated filer ý | Accelerated filer o | Non-accelerated filer o | Smaller reporting company o |
• | 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 our global distribution network. |
• | HR Solutions partners with organizations to solve their most complex human capital and related financial challenges in the areas of health, retirement and talent. We are dedicated to improving business performance and our clients’ employees’ experience by designing, implementing, communicating and administering a wide range of human capital, retirement, investment consulting, health care, compensation, and talent management strategies. |
• | general economic and political conditions in different countries in which we do business around the world; |
• | changes in the competitive environment; |
• | fluctuations in exchange and interest rates that could influence revenues and expenses; |
• | changes in global equity and fixed income markets that could affect the return on invested assets; |
• | changes in the funding status of our various defined benefit pension plans and the impact of any increased pension funding resulting from those changes; |
• | the level of our debt limiting financial flexibility or increasing borrowing costs; |
• | rating agency actions that could affect our ability to borrow funds; |
• | the effect of the change in global headquarters and jurisdiction of incorporation, including differences in the anticipated benefits; |
• | limits on our subsidiaries to make dividend and other payments to us; |
• | the impact of lawsuits and other contingent liabilities and loss contingencies arising from errors and omissions and other claims against us; |
• | the impact of, and potential challenges in complying with, legislation and regulation in the jurisdictions in which we operate, particularly given the global scope of our businesses and the possibility of conflicting regulatory requirements across jurisdictions in which we do business; |
• | the impact of any investigations brought by regulatory authorities in the U.S., U.K. and other countries; |
• | the impact of any inquiries relating to compliance with the U.S. Foreign Corrupt Practices Act and non-U.S. anti-corruption laws and with U.S. and non-U.S. trade sanctions regimes; |
• | failure to protect intellectual property rights or allegations that we infringe on the intellectual property rights of others; |
• | the effects of English law on our operating flexibility and the enforcement of judgments against us; |
• | the failure to retain and attract qualified personnel; |
• | international risks associated with our global operations; |
• | the effect of natural or man-made disasters; |
• | the potential of a system or network breach or disruption resulting in operational interruption or improper disclosure of personal data; |
• | our ability to develop and implement new technology; |
• | damage to our reputation among clients, markets or third parties; |
• | the actions taken by third parties that perform aspects of our business operations and client services; |
• | the extent to which we manage certain risks created in connection with the various services, including fiduciary and investments and other advisory services and business process outsourcing services, among others, that we currently provide, or will provide in the future, to clients; |
• | our ability to continue, and the costs associated with, growing, developing and integrating companies that we acquire or new lines of business; |
• | changes in commercial property and casualty markets, commercial premium rates or methods of compensation; |
• | impact of the pending sale of our Benefits Administration and HR Business Process Outsourcing Platform; |
• | changes in the health care system or our relationships with insurance carriers; and |
• | our ability to implement initiatives intended to yield cost savings and the ability to achieve those cost savings. |
• | the selling of insurance by insurance companies directly to insureds; |
• | changes in our business compensation model as a result of regulatory actions or changes; |
• | the establishment of programs in which state-sponsored entities provide property insurance in catastrophe prone areas or other alternative types of coverage; |
• | changes in regulations relating to health and welfare plans, defined contribution and defined benefit plans, and investment consulting and asset management; |
• | additional regulations promulgated by the FCA in the U.K., or other regulatory bodies in jurisdictions in which we operate; or |
• | additional requirements respecting data privacy and data usage in jurisdictions in which we operate that may increase our costs of compliance and potentially reduce the manner in which data can be used by us to develop or further our product offerings. |
• | the U.S. judgment must be for a debt or definite sum of money; |
• | the U.S. judgment must be final and conclusive; |
• | the U.S. court must, in the circumstances of the case, have had jurisdiction according to the English rules of private international law; |
• | the U.S. judgment must not have been obtained by fraud; |
• | the enforcement of the U.S. judgment must not be contrary to U.K. public policy; and |
• | the proceedings in which the U.S. judgment was obtained must not have been conducted contrary to the rules of natural justice. |
• | difficulties in staffing and managing our foreign offices, including due to unexpected wage inflation or job turnover, and the increased travel, infrastructure and legal and compliance costs associated with multiple international locations; |
• | hyperinflation in certain foreign countries; |
• | imposition or increase of investment and other restrictions by foreign governments; |
• | longer payment cycles; |
• | greater difficulties in accounts receivable collection; |
• | insufficient demand for our services in foreign jurisdictions; |
• | our ability to execute effective and efficient cross-border sourcing of services on behalf of our clients; |
• | restrictions on the import and export of technologies; and |
• | trade barriers. |
• | the growing availability of alternative methods for clients to meet their risk-protection needs, including a greater willingness on the part of corporations to “self-insure,” the use of so-called “captive” insurers, and the development of capital markets-based solutions and other alternative capital sources for traditional insurance and reinsurance needs that increase market capacity, increase competition and put pressure on pricing; |
• | fluctuation in the need for insurance as the economic downturn continues, as clients either go out of business or scale back their operations, and thus reduce the amount of insurance, they procure; |
• | the level of compensation, as a percentage of premium, that insurance carriers are willing to compensate brokers for placement activity; |
• | the growing desire of clients to move away from variable commission rates and instead compensate brokers based upon flat fees, which can negatively impact us as fees are not generally indexed for inflation and do not automatically increase with premium as does commission-based compensation; and |
• | competition from insurers seeking to sell their products directly to consumers, including online sales, without the involvement of an insurance broker. |
Property: | Occupied Square Footage | Lease Expiration Dates | ||
4 Overlook Point and other locations, Lincolnshire, Illinois | 1,059,000 | 2019 – 2024 | ||
Tikri Campus and Unitech Cyber Park, Gurgaon, India | 440,000 | 2015 – 2019 | ||
200 E. Randolph Street, Chicago, Illinois | 428,000 | 2028 | ||
2601 Research Forest Drive, The Woodlands, Texas | 414,000 | 2020 | ||
2300 Discovery Drive, Orlando, Florida | 364,000 | 2020 | ||
199 Water Street, New York, New York | 319,000 | 2018 | ||
7201 Hewitt Associates Drive, Charlotte, North Carolina | 218,000 | 2025 |
Name | Age | Position | ||
Eric Andersen | 52 | Chief Executive Officer, Aon Benfield. Mr. Andersen joined Aon in 1997 upon the completion of the acquisition of Minet. Mr. Andersen has served in a variety of roles at Aon during his 19 years at the Company, including as Chief Executive Officers of Aon Risk Solutions Americas from 2011 to 2013. Mr. Andersen was named Chief Executive Officer of Aon Benfield in September 2013 and an Executive Officer on February 1, 2017. | ||
John Bruno | 51 | Executive Vice President, Enterprise Innovation & Chief Information Officer. Mr. Bruno joined Aon in September 2014 as Executive Vice President, Enterprise Innovation & Chief Information Officer and was named an Executive Officer on February 1, 2017. Prior to joining Aon, Mr. Bruno held various positions at NCR Corporation, a technology company focused on assisted and self service solutions, from 2008 to 2014, where he most recently served as Executive Vice President, Industry & Field Operations and Corporate Development. Prior to working at NCR, Mr. Bruno served in various technology positions at Goldman Sachs Group, Merrill Lynch & Co. Inc. and Symbol Technologies, Inc. | ||
Gregory C. Case | 54 | President and Chief Executive Officer. Mr. Case became President and Chief Executive Officer of Aon in April 2005. Prior to joining Aon, Mr. Case was a partner with McKinsey & Company, the international management consulting firm, for 17 years, most recently serving as head of the Financial Services Practice. He previously was responsible for McKinsey’s Global Insurance Practice, and was a member of McKinsey’s governing Shareholders’ Committee. Prior to joining McKinsey, Mr. Case was with the investment banking firm of Piper, Jaffray and Hopwood and the Federal Reserve Bank of Kansas City. | ||
Christa Davies | 45 | Executive Vice President and Chief Financial Officer. Ms. Davies became Executive Vice President — Global Finance in November 2007. In March 2008, Ms. Davies assumed the additional role of Chief Financial Officer. Prior to joining Aon, Ms. Davies served for 5 years in various capacities at Microsoft Corporation, an international software company, most recently serving as Chief Financial Officer of the Platform and Services Division. Before joining Microsoft in 2002, Ms. Davies served at ninemsn, an Australian joint venture with Microsoft. | ||
Anthony Goland | 57 | Executive Vice President and Chief Human Resources Officer. Mr. Goland joined Aon in September 2015 as Executive Vice President and Chief Human Resources Officer. Prior to joining Aon, Mr. Goland spent 30 years at McKinsey & Company, Inc., a global management consulting firm where he was a leader of the Firm’s financial services, financial inclusion, and organization practices. Prior to McKinsey, he had experience with J.P. Morgan and IBM, and before that he volunteered and served as a Sergeant in the U.S. Army Europe. | ||
Peter Lieb | 61 | Executive Vice President, General Counsel and Company Secretary. Mr. Lieb was named Aon’s Executive Vice President and General Counsel in July 2009 and Company Secretary in November 2013. Prior to joining Aon, Mr. Lieb served as Senior Vice President, General Counsel and Secretary of NCR Corporation, a technology company focused on assisted and self-service solutions, from May 2006 to July 2009, and as Senior Vice President, General Counsel and Secretary of Symbol Technologies, Inc. from 2003 to 2006. From 1997 to 2003, Mr. Lieb served in various senior legal positions at International Paper Company, including Vice President and Deputy General Counsel. Earlier in his career, Mr. Lieb served as a law clerk to the Honorable Warren E. Burger, Chief Justice of the United States. | ||
Stephen P. McGill (1) | 59 | Mr. McGill joined Aon in May 2005 as Chief Executive Officer of the Global Large Corporate business unit, which is now part of Aon Global. Mr. McGill was named Chief Executive Officer or Aon Risk Services Americas in January 2006 prior to being named Chairman and Chief Executive Officer, Risk Solutions in February 2008 and Group President in May 2012. Previously, Mr. McGill served as Chief Executive Officer of Jardine Lloyd Thompson Group plc. | ||
Laurel Meissner | 59 | Senior Vice President and Global Controller. Ms. Meissner joined Aon in February 2009, and was appointed Senior Vice President and Global Controller and designated as Aon’s principal accounting officer in March 2009. Prior to joining Aon, Ms. Meissner served from July 2008 through January 2009 as Senior Vice President, Finance, Chief Accounting Officer of Motorola, Inc., an international communications company. Ms. Meissner joined Motorola in 2000 and served in various senior financial positions, including Corporate Vice President, Finance, Chief Accounting Officer. | ||
Michael O’Connor | 48 | Chief Executive Officer, Aon Risk Solutions. Mr. O’Connor joined Aon in 2008 as Chief Operating Officer of Aon Risk Solutions and was later named Chief Risk Operating Officer, Aon Risk Solutions and Aon Benfield. In 2013, he was named Chief Executive Officer, Aon Risk Solutions and was named an Executive Officer on February 1,2017. Prior to joining Aon, Mr. O’Connor was a partner at McKinsey & Company, where he served as a leader for the North America Financial Services and North American Insurance practices. | ||
Kristi A. Savacool | 57 | Chief Executive Officer, Aon Hewitt. Ms. Savacool joined Aon upon the completion of the merger between Aon and Hewitt Associates, Inc. and was named Chief Executive Officer of Aon Hewitt in February 2012. Prior to assuming this role, Ms. Savacool served as Co-Chief Executive Officer of Aon Hewitt from May 2011 and, prior to that, Chief Executive Officer of Benefits Administration for Aon Hewitt. Prior to the merger, Ms. Savacool served in several senior executive positions at Hewitt Associates, Inc., including Senior Vice President, Total Benefit Administration Outsourcing. Ms. Savacool joined Hewitt in 2005. Prior to joining Hewitt, Ms. Savacool held a number of executive management positions at The Boeing Company since 1985. |
Years Ended December 31 | ||||||||||||||||||||||||
2016 | 2015 | |||||||||||||||||||||||
High | Low | Dividends paid per share | High | Low | Dividends paid per share | |||||||||||||||||||
Fourth quarter | $ | 116.59 | $ | 107.19 | $ | 0.33 | $ | 97.79 | $ | 86.38 | $ | 0.30 | ||||||||||||
Third quarter | $ | 113.78 | $ | 105.35 | $ | 0.33 | $ | 103.38 | $ | 87.58 | $ | 0.30 | ||||||||||||
Second quarter | $ | 110.04 | $ | 100.55 | $ | 0.33 | $ | 104.70 | $ | 95.32 | $ | 0.30 | ||||||||||||
First quarter | $ | 104.76 | $ | 83.83 | $ | 0.30 | $ | 107.08 | $ | 89.35 | $ | 0.25 |
Period | Total Number of Shares Purchased | Average Price Paid per Share (1) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) | Maximum Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (1)(2) | ||||||||||
10/1/16 – 10/31/16 | 758,923 | $ | 110.68 | 758,923 | $ | 2,939,315,852 | ||||||||
11/1/16 – 11/30/16 | 754,296 | $ | 111.36 | 754,296 | $ | 2,855,317,922 | ||||||||
12/1/16 – 12/31/16 | 283,323 | $ | 112.96 | 283,323 | $ | 2,823,314,745 | ||||||||
1,796,542 | 1,796,542 |
(1) | Does not include commissions or other costs paid to repurchase shares. |
(2) | In April 2012, our Board of Directors authorized a share repurchase program under which up to $5 billion of Class A Ordinary Shares may be repurchased. In November 2014, our Board of Directors authorized an additional $5 billion of Class A Ordinary Shares for repurchase. In February 2017, the Board of Directors authorized a $5.0 billion increase to the then existing remaining authorization under its share repurchase program. Under each program, shares may be repurchased through open market or privately negotiated transactions, based on prevailing market conditions, funded from available capital. During 2016, we repurchased 12.2 million shares at an average price per share of $102.66 for a total cost of $1.3 billion. The remaining authorized amount for share repurchase under our Share Repurchase Programs is $2.8 billion at December 31, 2016. |
(millions except per share data) | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||
(As Revised) | (As Revised) | (As Revised) | (As Revised) | |||||||||||||||||
Income Statement Data | ||||||||||||||||||||
Commissions, fees and other | $ | 11,605 | $ | 11,661 | $ | 12,019 | $ | 11,787 | $ | 11,476 | ||||||||||
Fiduciary investment income | 22 | 21 | 26 | 28 | 38 | |||||||||||||||
Total revenue | $ | 11,627 | $ | 11,682 | $ | 12,045 | $ | 11,815 | $ | 11,514 | ||||||||||
Income from continuing operations | $ | 1,430 | $ | 1,422 | $ | 1,431 | $ | 1,148 | $ | 1,020 | ||||||||||
Net income | 1,430 | 1,422 | 1,431 | 1,148 | 1,020 | |||||||||||||||
Less: Net income attributable to noncontrolling interests | 34 | 37 | 34 | 35 | 27 | |||||||||||||||
Net income attributable to Aon shareholders | $ | 1,396 | $ | 1,385 | $ | 1,397 | $ | 1,113 | $ | 993 | ||||||||||
Basic Net Income Per Share Attributable to Aon Shareholders | $ | 5.21 | $ | 4.93 | $ | 4.73 | $ | 3.57 | $ | 3.02 | ||||||||||
Diluted Net Income Per Share Attributable to Aon Shareholders | $ | 5.16 | $ | 4.88 | $ | 4.66 | $ | 3.53 | $ | 2.99 | ||||||||||
Balance Sheet Data | ||||||||||||||||||||
Fiduciary assets (1) | $ | 9,485 | $ | 9,932 | $ | 11,638 | $ | 11,871 | $ | 12,214 | ||||||||||
Intangible assets including goodwill | $ | 10,970 | $ | 10,628 | $ | 11,380 | $ | 11,575 | $ | 11,918 | ||||||||||
Total assets | $ | 26,615 | $ | 26,883 | $ | 29,572 | $ | 30,060 | $ | 30,296 | ||||||||||
Long-term debt | $ | 5,869 | $ | 5,138 | $ | 4,768 | $ | 3,666 | $ | 3,694 | ||||||||||
Total equity | $ | 5,532 | $ | 6,059 | $ | 6,527 | $ | 8,091 | $ | 7,701 | ||||||||||
Class A Ordinary Shares and Other Data | ||||||||||||||||||||
Dividends paid per share | $ | 1.29 | $ | 1.15 | $ | 0.92 | $ | 0.68 | $ | 0.62 | ||||||||||
At year-end: | ||||||||||||||||||||
Market price, per share | $ | 111.53 | $ | 92.21 | $ | 94.83 | $ | 83.89 | $ | 55.61 | ||||||||||
Shares outstanding | 262.0 | 269.8 | 280.0 | 300.7 | 310.9 |
(1) | Represents insurance premium receivables from clients as well as cash and investments held in a fiduciary capacity. |
• | Revenue decreased $55 million to $11.6 billion in 2016 due primarily to a 2% unfavorable impact from changes in foreign currency exchange rates and a 2% decrease in commissions and fees related to acquisitions, net of divestitures, partially offset by organic revenue growth of 3% in the Risk Solutions segment and 3% in the HR Solutions segment. Organic revenue growth for the year was driven by strong new business generation and solid management of the renewal book portfolio across our Risk Solutions segment, as well as solid growth in both our Consulting and Outsourcing businesses within HR Solutions. |
• | Operating expenses decreased $113 million, or 1%, to $9.7 billion in 2016 due primarily to a $248 million favorable impact from changes in foreign currency exchange rates, a $176 million decrease in expenses related to legacy litigation incurred in the prior year, a $144 million decrease in the core expense base resulting from acquisitions, net of divestitures, and a $37 million decrease in intangible asset amortization, partially offset by $220 million of non-cash expenses related to certain pension settlements, an increase in expense associated with 3% organic revenue growth, and $15 million of transaction costs incurred related to future portfolio repositioning activities. |
• | Operating margin increased to 16.4% in 2016 from 15.8% in 2015. The increase in operating margin from the prior year is primarily driven by organic revenue growth of 3% and return on investments across the portfolio as well as a decrease in expense related to legacy litigation and the favorable impact from changes in foreign currency exchange rates, partially offset by non-cash expenses related to certain pension settlements. Risk Solutions operating margin increased to 21.2% in 2016 from 20.3% in 2015. HR Solutions operating margin increased to 13.3% in 2016 from 12.5% in 2015. |
• | Net income attributable to Aon shareholders was $1.4 billion, an increase of $11 million, or 1%, from 2015. Diluted earnings per share increased 6% to $5.16 in 2016 from $4.88 in 2015. |
• | Cash flow provided by operating activities was $2.3 billion in 2016, an increase of $317 million, or 16%, from $2.0 billion in 2015, due primarily to an increase in underlying net income after adjusting for certain non-cash pension expenses, lower cash pension contributions, and lower cash tax payments. |
• | On February 9, 2017, we entered into an agreement to sell our Benefits Administration and Business Process Outsourcing (BPO) Portfolio (the “Business”) for cash consideration of $4.3 billion payable at closing plus additional cash consideration of up to $500 million based on future performance of the Business (the “Transaction”). The Business is within the HR Solutions segment described further below. The completion of the Transaction is subject to customary closing conditions, and the Transaction is expected to close by the end of the second quarter of 2017. In connection with the Transaction, we expect to implement a cost reduction program that will result in a future charge to the financial statements. We believe the cost reduction program will reduce stranded costs, create greater efficiency, and contribute towards the Company's objective of being accretive to analysts’ consensus earnings of $7.97 per share in 2018, as published by FactSet. Refer to Note 18 “Subsequent Event - Disposition of Benefits Administration and Business Process Outsourcing” of the Notes to Consolidated Financial Statements for additional details regarding the Transaction. |
• | Organic revenue growth, a non-GAAP metric as defined under the caption “Review of Consolidated Results — Organic Revenue Growth,” was 3% in 2016. Organic revenue growth was driven by growth across every major business in both Risk Solutions and HR Solutions. In Risk Solutions, organic revenue growth was driven by strong growth in Retail brokerage across both the Americas and International businesses, as well as modest growth in Reinsurance. In HR Solutions, organic revenue growth was primarily driven by growth in health care exchanges and in HR BPO for cloud-based solutions as well as growth in investment and communications consulting. |
• | Adjusted operating margin, a non-GAAP metric as defined under the caption “Review of Consolidated Results — Adjusted Operating Margin,” was 20.8% for Aon overall, 24.5% for the Risk Solutions segment, and 18.4% for the HR Solutions segment in 2016. In 2015, adjusted operating margin was 20.0% for Aon overall, 23.6% for the Risk Solutions segment, and 18.1% for the HR Solutions segment. The increase in adjusted operating margin for the Risk Solutions segment primarily reflects solid organic revenue growth and return on investments in data and analytics. The increase in adjusted operating margin for the HR Solutions segment primarily reflects solid organic revenue growth and expense discipline, partially offset by lost operating income and stranded costs related to previous dispositions, as well as unfavorable impact from changes in foreign currency exchange rates. |
• | Adjusted diluted earnings per share from net income attributable to Aon’s shareholders, a non-GAAP metric as defined under the caption “Review of Consolidated Results — Adjusted Diluted Earnings per Share,” was $6.59 per share in 2016, an increase of $0.41 per share, or 7%, from $6.18 per share in 2015. The increase demonstrates solid operational performance and effective capital management, highlighted by $1.3 billion of share repurchase during 2016. |
• | Free cash flow, a non-GAAP metric as defined under the caption “Review of Consolidated Results — Free Cash Flow,” was $2.1 billion in 2016, an increase of $385 million, or 22%, from $1.7 billion in 2015. The increase in free cash flow from the prior year was driven by record cash flow from operations of $2.3 billion and a 23%, or $68 million, decrease in capital expenditures. |
Years ended December 31 | 2016 | 2015 | 2014 | ||||||||
Revenue: | |||||||||||
Commissions, fees and other | $ | 11,605 | $ | 11,661 | $ | 12,019 | |||||
Fiduciary investment income | 22 | 21 | 26 | ||||||||
Total revenue | 11,627 | 11,682 | 12,045 | ||||||||
Expenses: | |||||||||||
Compensation and benefits | 6,914 | 6,837 | 7,014 | ||||||||
Other general expenses | 2,807 | 2,997 | 3,065 | ||||||||
Total operating expenses | 9,721 | 9,834 | 10,079 | ||||||||
Operating income | 1,906 | 1,848 | 1,966 | ||||||||
Interest income | 9 | 14 | 10 | ||||||||
Interest expense | (282 | ) | (273 | ) | (255 | ) | |||||
Other income | 36 | 100 | 44 | ||||||||
Income before income taxes | 1,669 | 1,689 | 1,765 | ||||||||
Income taxes | 239 | 267 | 334 | ||||||||
Net income | 1,430 | 1,422 | 1,431 | ||||||||
Less: Net income attributable to noncontrolling interests | 34 | 37 | 34 | ||||||||
Net income attributable to Aon shareholders | $ | 1,396 | $ | 1,385 | $ | 1,397 |
Year Ended December 31, 2016 | Total Aon (1) | Risk Solutions | HR Solutions | ||||||||
Revenue — U.S. GAAP | $ | 11,627 | $ | 7,485 | $ | 4,183 | |||||
Operating income — U.S. GAAP | $ | 1,906 | $ | 1,587 | $ | 557 | |||||
Intangible asset amortization | 277 | 105 | 172 | ||||||||
Pension settlements | 220 | 144 | 26 | ||||||||
Transaction costs | $ | 15 | $ | — | $ | 15 | |||||
Operating income — as adjusted | $ | 2,418 | $ | 1,836 | $ | 770 | |||||
Operating margins — U.S. GAAP | 16.4 | % | 21.2 | % | 13.3 | % | |||||
Operating margins — as adjusted | 20.8 | % | 24.5 | % | 18.4 | % |
Year Ended December 31, 2015 | Total Aon (1) | Risk Solutions | HR Solutions | ||||||||
Revenue — U.S. GAAP | $ | 11,682 | $ | 7,426 | $ | 4,303 | |||||
Operating income — U.S. GAAP | $ | 1,848 | $ | 1,506 | $ | 536 | |||||
Intangible asset amortization | 314 | 109 | 205 | ||||||||
Legacy litigation | 176 | 137 | 39 | ||||||||
Operating income — as adjusted | $ | 2,338 | $ | 1,752 | $ | 780 | |||||
Operating margins — U.S. GAAP | 15.8 | % | 20.3 | % | 12.5 | % | |||||
Operating margins — as adjusted | 20.0 | % | 23.6 | % | 18.1 | % |
Year Ended December 31, 2014 | Total Aon (1) | Risk Solutions | HR Solutions | ||||||||
Revenue — U.S. GAAP | $ | 12,045 | $ | 7,834 | $ | 4,264 | |||||
Operating income — U.S. GAAP | $ | 1,966 | $ | 1,648 | $ | 485 | |||||
Intangible asset amortization | 352 | 109 | 243 | ||||||||
Legacy litigation | 35 | 35 | — | ||||||||
Operating income — as adjusted | $ | 2,353 | $ | 1,792 | $ | 728 | |||||
Operating margins — U.S. GAAP | 16.3 | % | 21.0 | % | 11.4 | % | |||||
Operating margins — as adjusted | 19.5 | % | 22.9 | % | 17.1 | % |
Year Ended December 31, 2016 | U.S. GAAP | Adjustments | As Adjusted | ||||||||
Operating income | $ | 1,906 | $ | 512 | $ | 2,418 | |||||
Interest income | 9 | — | 9 | ||||||||
Interest expense | (282 | ) | — | (282 | ) | ||||||
Other income | 36 | — | 36 | ||||||||
Income before income taxes | 1,669 | 512 | 2,181 | ||||||||
Income taxes | 239 | 128 | 367 | ||||||||
Net income | 1,430 | 384 | 1,814 | ||||||||
Less: Net income attributable to noncontrolling interests | 34 | — | 34 | ||||||||
Net income attributable to Aon shareholders | $ | 1,396 | $ | 384 | $ | 1,780 | |||||
Diluted earnings per share | $ | 5.16 | $ | 1.43 | $ | 6.59 | |||||
Weighted average ordinary shares outstanding — diluted | 270.3 | 270.3 |
Year Ended December 31, 2015 | U.S. GAAP | Adjustments | As Adjusted | ||||||||
Operating income | $ | 1,848 | $ | 490 | $ | 2,338 | |||||
Interest income | 14 | — | 14 | ||||||||
Interest expense | (273 | ) | — | (273 | ) | ||||||
Other income | 100 | — | 100 | ||||||||
Income before income taxes | 1,689 | 490 | 2,179 | ||||||||
Income taxes | 267 | 122 | 389 | ||||||||
Net income | 1,422 | 368 | 1,790 | ||||||||
Less: Net income attributable to noncontrolling interests | 37 | — | 37 | ||||||||
Net income attributable to Aon shareholders | $ | 1,385 | $ | 368 | $ | 1,753 | |||||
Diluted earnings per share | $ | 4.88 | $ | 1.30 | $ | 6.18 | |||||
Weighted average ordinary shares outstanding — diluted | 283.8 | 283.8 |
Year Ended December 31, 2014 | U.S. GAAP | Adjustments | As Adjusted | ||||||||
Operating income | $ | 1,966 | $ | 387 | $ | 2,353 | |||||
Interest income | 10 | — | 10 | ||||||||
Interest expense | (255 | ) | — | (255 | ) | ||||||
Other income | 44 | — | 44 | ||||||||
Income before income taxes | 1,765 | 387 | 2,152 | ||||||||
Income taxes | 334 | 73 | 407 | ||||||||
Net income | 1,431 | 314 | 1,745 | ||||||||
Less: Net income attributable to noncontrolling interests | 34 | — | 34 | ||||||||
Net income attributable to Aon shareholders | $ | 1,397 | $ | 314 | $ | 1,711 | |||||
Diluted earnings per share | $ | 4.66 | $ | 1.05 | $ | 5.71 | |||||
Weighted average ordinary shares outstanding — diluted | 299.6 | 299.6 |
Years Ended December 31 | 2016 | 2015 | 2014 | ||||||||
Cash flow provided by operating activities - U.S. GAAP | $ | 2,326 | $ | 2,009 | $ | 1,812 | |||||
Less: Capital expenditures | (222 | ) | (290 | ) | (256 | ) | |||||
Free cash flow | $ | 2,104 | $ | 1,719 | $ | 1,556 |
Statement of Financial Position Classification | |||||||||||||||
Asset Type | Cash and Cash Equivalents | Short-term Investments | Fiduciary Assets | Total | |||||||||||
Certificates of deposit, bank deposits or time deposits | $ | 431 | $ | — | $ | 2,735 | $ | 3,166 | |||||||
Money market funds | — | 290 | 1,081 | 1,371 | |||||||||||
Other investments due within one year | — | — | — | — | |||||||||||
Cash and investments | 431 | 290 | 3,816 | 4,537 | |||||||||||
Fiduciary receivables | — | — | 5,669 | 5,669 | |||||||||||
Total | $ | 431 | $ | 290 | $ | 9,485 | $ | 10,206 |
Years Ended December 31 | 2016 | 2015 | |||||
Net income | $ | 1,430 | $ | 1,422 | |||
Interest expense | 282 | 273 | |||||
Income taxes | 239 | 267 | |||||
Depreciation of fixed assets | 232 | 229 | |||||
Amortization of intangible assets | 277 | 314 | |||||
Total EBITDA | $ | 2,460 | $ | 2,505 | |||
Total Debt | $ | 6,205 | $ | 5,700 | |||
Total debt-to-EBITDA ratio | 2.5 | 2.3 |
Ratings | |||||
Senior Long-term Debt | Commercial Paper | Outlook | |||
Standard & Poor’s | A- | A-2 | Stable | ||
Moody’s Investor Services | Baa2 | P-2 | Stable | ||
Fitch, Inc. | BBB+ | F-2 | Stable |
Payments due in | |||||||||||||||||||
2017 | 2018 – 2019 | 2020 – 2021 | 2022 and beyond | Total | |||||||||||||||
Principal payments on debt | $ | 336 | $ | 278 | $ | 1,000 | $ | 4,700 | $ | 6,314 | |||||||||
Interest payments on debt | 271 | 522 | 479 | 2,570 | 3,842 | ||||||||||||||
Operating leases | 355 | 600 | 451 | 696 | 2,102 | ||||||||||||||
Pension and other postretirement benefit plans | 189 | 485 | 396 | 1,023 | 2,093 | ||||||||||||||
Purchase obligations | 410 | 405 | 133 | 12 | 960 | ||||||||||||||
Total | $ | 1,561 | $ | 2,290 | $ | 2,459 | $ | 9,001 | $ | 15,311 |
• | 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 our 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. |
Years ended December 31 (millions, except percentage data) | 2016 | 2015 | 2014 | ||
Revenue | $7,485 | $7,426 | $7,834 | ||
Operating income | $1,587 | $1,506 | $1,648 | ||
Operating margin | 21.2% | 20.3% | 21.0% |
Years ended December 31 | 2016 | 2015 | 2014 | ||||||||
Retail brokerage: | |||||||||||
Americas | $ | 3,357 | $ | 3,294 | $ | 3,288 | |||||
International (1) | 2,739 | 2,750 | 3,046 | ||||||||
Total retail brokerage | 6,096 | 6,044 | 6,334 | ||||||||
Reinsurance brokerage | 1,367 | 1,361 | 1,474 | ||||||||
Total | $ | 7,463 | $ | 7,405 | $ | 7,808 |
(1) | Includes the U.K., Europe, Middle East, Africa and Asia Pacific. |
Percent Change | Less: Currency Impact | Less: Acquisitions, Divestitures & Other | Organic Revenue Growth | ||||
Retail brokerage: | |||||||
Americas | 2% | (2)% | —% | 4% | |||
International (1) | — | (3) | — | 3 | |||
Total retail brokerage | 1 | (3) | — | 4 | |||
Reinsurance brokerage | — | (1) | — | 1 | |||
Total | 1% | (2)% | —% | 3% |
(1) | Includes the U.K., Europe, Middle East, Africa and Asia Pacific. |
Years ended December 31 (millions, except percentage data) | 2016 | 2015 | 2014 | ||
Revenue | $4,183 | $4,303 | $4,264 | ||
Operating income | $557 | $536 | $485 | ||
Operating margin | 13.3% | 12.5% | 11.4% |
• | Retirement specializes in global actuarial services, defined contribution consulting, tax and ERISA consulting, and pension administration. |
• | Compensation focuses on compensatory advisory/counsel including: compensation planning design, executive reward strategies, salary survey and benchmarking, market share studies, and sales force effectiveness, with special expertise in the financial services and technology industries. |
• | Strategic Human Capital delivers advice to complex global organizations on talent, change, and organizational effectiveness issues, including talent strategy and acquisition, executive on-boarding, performance management, leadership assessment and development, communication strategy, workforce training, and change management. |
• | Investment consulting advises public and private companies, other institutions, and trustees on developing and maintaining investment programs across a broad range of plan types, including defined benefit plans, defined contribution plans, endowments, and foundations. |
• | Benefits Administration applies our human resource expertise primarily through defined benefit (pension), defined contribution (401(k)), and health and welfare administrative services. Our model replaces the resource-intensive processes once required to administer benefit plans with more efficient, effective, and less costly solutions. |
• | Exchanges builds and operates healthcare exchanges to provide employers with a cost effective alternative to traditional employee and retiree healthcare, while helping individuals select the insurance that best meets their needs. |
• | Human Resource Business Processing Outsourcing provides market-leading solutions to manage employee data; administers benefits, payroll and other human resources processes; and records and manages talent, workforce and other core human resource process transactions as well as other complementary services such as flexible spending, dependent audit, and participant advocacy. |
Years ended December 31 | 2016 | 2015 | 2014 | ||||||||
Consulting services | $ | 1,662 | $ | 1,686 | $ | 1,700 | |||||
Outsourcing | 2,557 | 2,658 | 2,607 | ||||||||
Intersegment | (36 | ) | (41 | ) | (43 | ) | |||||
Total | $ | 4,183 | $ | 4,303 | $ | 4,264 |
Percent Change | Less: Currency Impact | Less: Acquisitions, Divestitures & Other | Organic Revenue Growth | ||||
Consulting services | (1)% | (3)% | —% | 2% | |||
Outsourcing | (4)% | (1)% | (7)% | 4% | |||
Total | (3)% | (2)% | (4)% | 3% |
Years ended December 31 | 2016 | 2015 | 2014 | ||||||||
Operating income (loss): | |||||||||||
Risk Solutions | $ | 1,587 | $ | 1,506 | $ | 1,648 | |||||
HR Solutions | 557 | 536 | 485 | ||||||||
Unallocated expense | (238 | ) | (194 | ) | (167 | ) | |||||
Operating income | 1,906 | 1,848 | 1,966 | ||||||||
Interest income | 9 | 14 | 10 | ||||||||
Interest expense | (282 | ) | (273 | ) | (255 | ) | |||||
Other income | 36 | 100 | 44 | ||||||||
Income before income taxes | $ | 1,669 | $ | 1,689 | $ | 1,765 |
U.K. | U.S. | Other | |||||||||
Unrecognized actuarial gains and losses | $ | 1,256 | $ | 1,618 | $ | 394 | |||||
Amortization period | 9 - 31 | 7 - 26 | 14 - 40 | ||||||||
Estimated 2017 amortization of loss | $ | 30 | $ | 52 | $ | 11 |
U.K. | U.S. | Other | |||
Expected return | 3.36% | 7.88% | 2.68 - 5.15% |
Estimated liability discount rate Increase (decrease) in projected benefit obligation of December 31, 2016 (1) | 25 Basis Point Change in Discount Rate | ||||||
Increase | Decrease | ||||||
U.K. plans | $ | (226 | ) | $ | 237 | ||
U.S. plans | (83 | ) | 87 | ||||
Other plans | (53 | ) | 56 |
(1) | Increases to the projected benefit obligation reflect increases to our pension obligations, while decreases in the projected benefit obligation are recoveries toward fully funded status. A change in the discount rate has an inverse relationship to the projected benefit obligation. |
25 Basis Point Change in Discount Rate | |||||||
Increase (decrease) in expense | Increase | Decrease | |||||
U.K. plans | $ | (4 | ) | $ | 4 | ||
U.S. plans | 1 | (1 | ) | ||||
Other plans | — | — |
25 Basis Point Change in Long-Term Rate of Return on Plan Assets | |||||||
Increase (decrease) in expense | Increase | Decrease | |||||
U.K. plans | $ | (14 | ) | $ | 14 | ||
U.S. plans | (4 | ) | 4 | ||||
Other plans | (3 | ) | 3 |
Years ended December 31 | ||||||||||||
(millions, except per share data) | 2016 | 2015 | 2014 | |||||||||
Revenue | ||||||||||||
Commissions, fees and other | $ | 11,605 | $ | 11,661 | $ | 12,019 | ||||||
Fiduciary investment income | 22 | 21 | 26 | |||||||||
Total revenue | 11,627 | 11,682 | 12,045 | |||||||||
Expenses | ||||||||||||
Compensation and benefits | 6,914 | 6,837 | 7,014 | |||||||||
Other general expenses | 2,807 | 2,997 | 3,065 | |||||||||
Total operating expenses | 9,721 | 9,834 | 10,079 | |||||||||
Operating income | 1,906 | 1,848 | 1,966 | |||||||||
Interest income | 9 | 14 | 10 | |||||||||
Interest expense | (282 | ) | (273 | ) | (255 | ) | ||||||
Other income | 36 | 100 | 44 | |||||||||
Income before income taxes | 1,669 | 1,689 | 1,765 | |||||||||
Income taxes | 239 | 267 | 334 | |||||||||
Net income | 1,430 | 1,422 | 1,431 | |||||||||
Less: Net income attributable to noncontrolling interests | 34 | 37 | 34 | |||||||||
Net income attributable to Aon shareholders | $ | 1,396 | $ | 1,385 | $ | 1,397 | ||||||
Basic net income per share attributable to Aon shareholders | $ | 5.21 | $ | 4.93 | $ | 4.73 | ||||||
Diluted net income per share attributable to Aon shareholders | $ | 5.16 | $ | 4.88 | $ | 4.66 | ||||||
Cash dividends per share paid on ordinary shares | $ | 1.29 | $ | 1.15 | $ | 0.92 | ||||||
Weighted average ordinary shares outstanding - basic | 268.1 | 280.8 | 295.5 | |||||||||
Weighted average ordinary shares outstanding - diluted | 270.3 | 283.8 | 299.6 |
Years Ended December 31 | ||||||||||||
(millions) | 2016 | 2015 | 2014 | |||||||||
Net income | $ | 1,430 | $ | 1,422 | $ | 1,431 | ||||||
Less: Net income attributable to noncontrolling interests | 34 | 37 | 34 | |||||||||
Net income attributable to Aon shareholders | $ | 1,396 | $ | 1,385 | $ | 1,397 | ||||||
Other comprehensive (loss) income, net of tax: | ||||||||||||
Change in fair value of financial instruments | (12 | ) | (8 | ) | 4 | |||||||
Foreign currency translation adjustments | (495 | ) | (442 | ) | (507 | ) | ||||||
Post-retirement benefit obligation | 16 | 155 | (260 | ) | ||||||||
Total other comprehensive loss | (491 | ) | (295 | ) | (763 | ) | ||||||
Less: Other comprehensive loss attributable to noncontrolling interests | (2 | ) | (6 | ) | (3 | ) | ||||||
Total other comprehensive loss attributable to Aon shareholders | (489 | ) | (289 | ) | (760 | ) | ||||||
Comprehensive income attributable to Aon shareholders | $ | 907 | $ | 1,096 | $ | 637 |
As of December 31 | ||||||||
(millions, except nominal value) | 2016 | 2015 | ||||||
(As Revised) | ||||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 431 | $ | 384 | ||||
Short-term investments | 290 | 356 | ||||||
Receivables, net | 2,589 | 2,564 | ||||||
Fiduciary assets | 9,485 | 9,932 | ||||||
Other current assets | 351 | 329 | ||||||
Total Current Assets | 13,146 | 13,565 | ||||||
Goodwill | 8,747 | 8,448 | ||||||
Intangible assets, net | 2,223 | 2,180 | ||||||
Fixed assets, net | 765 | 765 | ||||||
Deferred tax assets | 322 | 300 | ||||||
Prepaid pension | 858 | 1,033 | ||||||
Other non-current assets | 554 | 592 | ||||||
TOTAL ASSETS | $ | 26,615 | $ | 26,883 | ||||
LIABILITIES AND EQUITY | ||||||||
LIABILITIES | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable and accrued liabilities | $ | 1,801 | $ | 1,772 | ||||
Short-term debt and current portion of long-term debt | 336 | 562 | ||||||
Fiduciary liabilities | 9,485 | 9,932 | ||||||
Other current liabilities | 873 | 819 | ||||||
Total Current Liabilities | 12,495 | 13,085 | ||||||
Long-term debt | 5,869 | 5,138 | ||||||
Deferred tax liabilities | 101 | 37 | ||||||
Pension, other post retirement, and post employment liabilities | 1,774 | 1,795 | ||||||
Other non-current liabilities | 844 | 769 | ||||||
TOTAL LIABILITIES | 21,083 | 20,824 | ||||||
EQUITY | ||||||||
Ordinary shares - $0.01 nominal value Authorized: 750 shares (issued: 2016 - 262.0; 2015 - 269.8) | 3 | 3 | ||||||
Additional paid-in capital | 5,577 | 5,409 | ||||||
Retained earnings | 3,807 | 4,013 | ||||||
Accumulated other comprehensive loss | (3,912 | ) | (3,423 | ) | ||||
TOTAL AON SHAREHOLDERS' EQUITY | 5,475 | 6,002 | ||||||
Noncontrolling interests | 57 | 57 | ||||||
TOTAL EQUITY | 5,532 | 6,059 | ||||||
TOTAL LIABILITIES AND EQUITY | $ | 26,615 | $ | 26,883 |
(millions) | Shares | Ordinary Shares and Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss, Net of Tax | Noncontrolling Interests | Total | ||||||||||||||||
(As Revised) | ||||||||||||||||||||||
Balance at January 1, 2014 | 300.7 | $ | 4,788 | $ | 5,627 | $ | (2,374 | ) | $ | 50 | 8,091 | |||||||||||
Net income | — | — | 1,397 | — | 34 | 1,431 | ||||||||||||||||
Shares issued — employee benefit plans | 0.4 | 26 | — | — | — | 26 | ||||||||||||||||
Shares issued — employee compensation | 4.7 | (131 | ) | — | — | — | (131 | ) | ||||||||||||||
Shares purchased | (25.8 | ) | — | (2,250 | ) | — | — | (2,250 | ) | |||||||||||||
Tax benefit — employee benefit plans | — | 89 | — | — | — | 89 | ||||||||||||||||
Share-based compensation expense | — | 328 | — | — | — | 328 | ||||||||||||||||
Dividends to shareholders | — | — | (273 | ) | — | — | (273 | ) | ||||||||||||||
Net change in fair value of financial instruments | — | — | — | 4 | — | 4 | ||||||||||||||||
Net foreign currency translation adjustments | — | — | — | (504 | ) | (3 | ) | (507 | ) | |||||||||||||
Net post-retirement benefit obligation | — | — | — | (260 | ) | — | (260 | ) | ||||||||||||||
Net sales of subsidiary shares to noncontrolling interests | — | — | — | — | 3 | 3 | ||||||||||||||||
Dividends paid to noncontrolling interests on subsidiary common stock | — | — | — | — | (24 | ) | (24 | ) | ||||||||||||||
Balance at December 31, 2014 | 280.0 | 5,100 | 4,501 | (3,134 | ) | 60 | 6,527 | |||||||||||||||
Net income | — | — | 1,385 | — | 37 | 1,422 | ||||||||||||||||
Shares issued — employee benefit plans | 0.5 | 33 | — | — | — | 33 | ||||||||||||||||
Shares issued — employee compensation | 5.3 | (188 | ) | — | — | — | (188 | ) | ||||||||||||||
Shares purchased | (16.0 | ) | — | (1,550 | ) | — | — | (1,550 | ) | |||||||||||||
Tax benefit — employee benefit plans | — | 126 | — | — | — | 126 | ||||||||||||||||
Share-based compensation expense | — | 340 | — | — | — | 340 | ||||||||||||||||
Dividends to shareholders | — | — | (323 | ) | — | — | (323 | ) | ||||||||||||||
Net change in fair value of financial instruments | — | — | — | (8 | ) | — | (8 | ) | ||||||||||||||
Net foreign currency translation adjustments | — | — | — | (436 | ) | (6 | ) | (442 | ) | |||||||||||||
Net post-retirement benefit obligation | — | — | — | 155 | — | 155 | ||||||||||||||||
Net purchases of shares from noncontrolling interests | — | 1 | — | — | (7 | ) | (6 | ) | ||||||||||||||
Dividends paid to noncontrolling interests on subsidiary common stock | — | — | — | — | (27 | ) | (27 | ) | ||||||||||||||
Balance at December 31, 2015 | 269.8 | 5,412 | 4,013 | (3,423 | ) | 57 | 6,059 | |||||||||||||||
Net income | — | — | 1,396 | — | 34 | 1,430 | ||||||||||||||||
Shares issued — employee benefit plans | 0.7 | 49 | — | — | — | 49 | ||||||||||||||||
Shares issued — employee compensation | 3.6 | (174 | ) | — | — | — | (174 | ) | ||||||||||||||
Shares purchased | (12.1 | ) | — | (1,257 | ) | — | — | (1,257 | ) | |||||||||||||
Tax benefit — employee benefit plans | — | (4 | ) | — | — | — | (4 | ) | ||||||||||||||
Share-based compensation expense | — | 331 | — | — | — | 331 | ||||||||||||||||
Dividends to shareholders | — | — | (345 | ) | — | — | (345 | ) | ||||||||||||||
Net change in fair value of financial instruments | — | — | — | (12 | ) | — | (12 | ) | ||||||||||||||
Net foreign currency translation adjustments | — | — | — | (493 | ) | (2 | ) | (495 | ) | |||||||||||||
Net post-retirement benefit obligation | — | — | — | 16 | — | 16 | ||||||||||||||||
Net purchases of shares from noncontrolling interests | — | (34 | ) | — | — | (4 | ) | (38 | ) | |||||||||||||
Dividends paid to noncontrolling interests on subsidiary common stock | — | — | — | (28 | ) | (28 | ) | |||||||||||||||
Balance at December 31, 2016 | 262.0 | $ | 5,580 | $ | 3,807 | $ | (3,912 | ) | $ | 57 | $ | 5,532 |
Years ended December 31 | ||||||||||||
(millions) | 2016 | 2015 | 2014 | |||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||
Net income | $ | 1,430 | $ | 1,422 | $ | 1,431 | ||||||
Adjustments to reconcile net income to cash provided by operating activities: | ||||||||||||
Gain from sales of businesses and investments, net | (39 | ) | (81 | ) | (44 | ) | ||||||
Depreciation of fixed assets | 232 | 229 | 242 | |||||||||
Amortization of intangible assets | 277 | 314 | 352 | |||||||||
Share-based compensation expense | 331 | 340 | 328 | |||||||||
Deferred income taxes | (24 | ) | (223 | ) | (135 | ) | ||||||
Change in assets and liabilities: | ||||||||||||
Fiduciary receivables | 594 | 599 | (19 | ) | ||||||||
Short-term investments — funds held on behalf of clients | (598 | ) | 350 | (403 | ) | |||||||
Fiduciary liabilities | 4 | (949 | ) | 422 | ||||||||
Receivables, net | (86 | ) | (83 | ) | (25 | ) | ||||||
Accounts payable and accrued liabilities | 64 | 87 | 4 | |||||||||
Current income taxes | 49 | 116 | 42 | |||||||||
Pension, other post-retirement and other post-employment liabilities | 42 | (230 | ) | (340 | ) | |||||||
Other assets and liabilities | 50 | 118 | (43 | ) | ||||||||
CASH PROVIDED BY OPERATING ACTIVITIES | 2,326 | 2,009 | 1,812 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||
Proceeds from investments | 43 | 220 | 52 | |||||||||
Payments for investments | (64 | ) | (266 | ) | (20 | ) | ||||||
Net sales (purchases) of short-term investments — non-fiduciary | 61 | 9 | 110 | |||||||||
Acquisition of businesses, net of cash acquired | (879 | ) | (16 | ) | (479 | ) | ||||||
Proceeds from sale of businesses | 107 | 205 | 48 | |||||||||
Capital expenditures | (222 | ) | (290 | ) | (256 | ) | ||||||
CASH USED FOR INVESTING ACTIVITIES | (954 | ) | (138 | ) | (545 | ) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||
Share repurchase | (1,257 | ) | (1,550 | ) | (2,250 | ) | ||||||
Issuance of shares for employee benefit plans | (129 | ) | (30 | ) | (105 | ) | ||||||
Issuance of debt | 3,467 | 5,351 | 5,239 | |||||||||
Repayment of debt | (2,945 | ) | (5,098 | ) | (3,918 | ) | ||||||
Cash dividends to shareholders | (345 | ) | (323 | ) | (273 | ) | ||||||
Noncontrolling interests and other financing activities | (77 | ) | (39 | ) | 4 | |||||||
CASH USED FOR FINANCING ACTIVITIES | (1,286 | ) | (1,689 | ) | (1,303 | ) | ||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (39 | ) | (172 | ) | (67 | ) | ||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 47 | 10 | (103 | ) | ||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 384 | 374 | 477 | |||||||||
CASH AND CASH EQUIVALENTS AT END OF YEAR | $ | 431 | $ | 384 | $ | 374 | ||||||
Supplemental disclosures: | ||||||||||||
Interest paid | $ | 272 | $ | 254 | $ | 245 | ||||||
Income taxes paid, net of refunds | 218 | 249 | 337 |
Q1 2016 | Q2 2016 | Q3 2016 | |||||||||||||||||||||||||||
(Unaudited) | As Reported | Effect of Change(1) | As Revised | As Reported | Effect of Change(1) | As Revised | As Reported | Effect of Change(1) | As Revised | ||||||||||||||||||||
Net Income | $ | 327 | $ | 10 | $ | 337 | $ | 607 | $ | 38 | $ | 645 | $ | 921 | $ | 50 | $ | 971 | |||||||||||
Change in assets and liabilities: | |||||||||||||||||||||||||||||
Receivables, net | 110 | (13 | ) | 97 | 175 | (47 | ) | 128 | 289 | (61 | ) | 228 | |||||||||||||||||
Other assets and liabilities | $ | 69 | $ | 3 | $ | 72 | $ | 56 | $ | 9 | $ | 65 | $ | 83 | $ | 11 | $ | 94 |
(1) | No net impact to Cash Provided by Operating Activities. |
Asset Description | Asset Life | |
Software | Lesser of the life of an associated license, or 4 to 7 years | |
Leasehold improvements | Lesser of estimated useful life or lease term, not to exceed 10 years | |
Furniture, fixtures and equipment | 4 to 10 years | |
Computer equipment | 4 to 6 years | |
Buildings | 35 years | |
Automobiles | 6 years |
Years ended December 31 | 2016 | 2015 | 2014 | ||||||||
Equity earnings | $ | 13 | $ | 13 | $ | 12 | |||||
Net gain on disposals of businesses | 39 | 82 | 24 | ||||||||
Foreign currency remeasurement (loss) gain | (2 | ) | 30 | 18 | |||||||
(Loss) income on financial instruments | (14 | ) | (24 | ) | (15 | ) | |||||
Other | — | (1 | ) | 5 | |||||||
Total | $ | 36 | $ | 100 | $ | 44 |
Years ended December 31 | 2016 | 2015 | 2014 | ||||||||
Balance at January 1 | $ | 58 | $ | 74 | $ | 90 | |||||
Provision charged to operations | 11 | 13 | 12 | ||||||||
Accounts written off, net of recoveries | (14 | ) | (34 | ) | (33 | ) | |||||
Foreign currency translation | 3 | 5 | 5 | ||||||||
Balance at December 31 | $ | 58 | $ | 58 | $ | 74 |
As of December 31 | 2016 | 2015 | |||||
Taxes receivable | $ | 100 | $ | 94 | |||
Prepaid expenses | 125 | 130 | |||||
Deferred project costs | 87 | 92 | |||||
Other | 39 | 13 | |||||
Total | $ | 351 | $ | 329 |
As of December 31 | 2016 | 2015 | |||||
Software | $ | 948 | $ | 1,095 | |||
Leasehold improvements | 452 | 422 | |||||
Computer equipment | 417 | 358 | |||||
Furniture, fixtures and equipment | 300 | 315 | |||||
Construction in progress | 93 | 76 | |||||
Other | 115 | 115 | |||||
Fixed assets, gross | 2,325 | 2,381 | |||||
Less: Accumulated depreciation | 1,560 | 1,616 | |||||
Fixed assets, net | $ | 765 | $ | 765 |
As of December 31 | 2016 | 2015 | |||||
Deferred project costs | $ | 183 | $ | 210 | |||
Investments | 119 | 135 | |||||
Taxes receivable | 82 | 82 | |||||
Other | 170 | 165 | |||||
Total | $ | 554 | $ | 592 |
As of December 31 | 2016 | 2015 | |||||
Deferred revenue | $ | 393 | $ | 394 | |||
Taxes payable | 78 | 94 | |||||
Other | 402 | 331 | |||||
Total | $ | 873 | $ | 819 |
As of December 31 | 2016 | 2015 | |||||
Taxes payable | $ | 288 | $ | 223 | |||
Leases | 169 | 166 | |||||
Deferred revenue | 140 | 159 | |||||
Compensation and benefits | 56 | 59 | |||||
Other | 191 | 162 | |||||
Total | $ | 844 | $ | 769 |
Years ended December 31 | 2016 | 2015 | |
Risk Solutions | 5 | 4 | |
HR Solutions | 3 | 3 | |
Total | 8 | 7 |
Year ended December 31 | 2016 | ||
Cash | $ | 891 | |
Deferred and contingent consideration | 43 | ||
Aggregate consideration transferred | 934 | ||
Assets acquired: | |||
Cash and cash equivalents | 12 | ||
Receivables, net | 52 | ||
Goodwill | 642 | ||
Intangible assets, net | 366 | ||
Fixed assets, net | 30 | ||
Other assets | 2 | ||
Total assets acquired | 1,104 | ||
Liabilities assumed: | |||
Current liabilities | 163 | ||
Other liabilities | 7 | ||
Total liabilities assumed | 170 | ||
Net assets acquired | $ | 934 |
Year ended December 31 | 2015 | ||
Consideration | $ | 27 | |
Intangible assets: | |||
Goodwill | $ | 18 | |
Other intangible assets | 6 | ||
Total intangible assets | $ | 24 |
Years ended December 31 | 2016 | 2015 | 2014 | |||
Risk Solutions | 4 | 4 | 2 | |||
HR Solutions | 1 | 3 | 0 | |||
Total | 5 | 7 | 2 |
Risk Solutions | HR Solutions | Total | |||||||||
Balance as of January 1, 2015 | $ | 5,911 | $ | 2,949 | $ | 8,860 | |||||
Goodwill related to current year acquisitions | 2 | 16 | 18 | ||||||||
Goodwill related to disposals | (1 | ) | (76 | ) | (77 | ) | |||||
Goodwill related to prior year acquisitions | — | — | — | ||||||||
Foreign currency translation | (319 | ) | (34 | ) | (353 | ) | |||||
Balance as of December 31, 2015 | $ | 5,593 | $ | 2,855 | $ | 8,448 | |||||
Goodwill related to current year acquisitions | 632 | 10 | 642 | ||||||||
Goodwill related to disposals | (8 | ) | (26 | ) | (34 | ) | |||||
Goodwill related to prior year acquisitions | 4 | — | 4 | ||||||||
Foreign currency translation | (268 | ) | (45 | ) | (313 | ) | |||||
Balance as of December 31, 2016 | $ | 5,953 | $ | 2,794 | $ | 8,747 |
As of December 31 | |||||||||||||||||||||||
2016 | 2015 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||
Intangible assets with indefinite lives: | |||||||||||||||||||||||
Tradenames | $ | 998 | $ | — | $ | 998 | $ | 1,019 | $ | — | $ | 1,019 | |||||||||||
Intangible assets with finite lives: | |||||||||||||||||||||||
Customer related and contract based | 3,108 | 1,971 | 1,137 | 2,886 | 1,809 | 1,077 | |||||||||||||||||
Technology and other | 574 | 486 | 88 | 541 | 457 | 84 | |||||||||||||||||
Total | $ | 4,680 | $ | 2,457 | $ | 2,223 | $ | 4,446 | $ | 2,266 | $ | 2,180 |
Risk Solutions | HR Solutions | Total | |||||||||
2017 | $ | 123 | $ | 136 | $ | 259 | |||||
2018 | 118 | 91 | 209 | ||||||||
2019 | 107 | 73 | 180 | ||||||||
2020 | 97 | 61 | 158 | ||||||||
2021 | 66 | 53 | 119 | ||||||||
Thereafter | 239 | 61 | 300 | ||||||||
Total | $ | 750 | $ | 475 | $ | 1,225 |
As of December 31 | 2016 | 2015 (1) | |||||
3.875% Senior Notes due December 2025 | $ | 744 | $ | — | |||
5.00% Senior Notes due September 2020 | 598 | 597 | |||||
4.75% Senior Notes due May 2045 | 592 | 591 | |||||
3.50% Senior Notes due June 2024 | 594 | 593 | |||||
4.60% Senior Notes due June 2044 | 543 | 543 | |||||
2.875% Senior Notes due May 2026 (EUR 500M) | 516 | 541 | |||||
8.205% Junior Subordinated Notes due January 2027 | 521 | 521 | |||||
3.125% Senior Notes due May 2016 | — | 500 | |||||
2.80% Senior Notes due March 2021 | 397 | 396 | |||||
4.00% Senior Notes due November 2023 | 347 | 347 | |||||
6.25% Senior Notes due September 2040 | 295 | 295 | |||||
4.76% Senior Notes due March 2018 (CAD 375M) | 277 | 270 | |||||
4.45% Senior Notes due May 2043 | 246 | 246 | |||||
4.25% Senior Notes due December 2042 | 197 | 195 | |||||
Commercial paper | 329 | 50 | |||||
Other | 9 | 15 | |||||
Total debt | 6,205 | 5,700 | |||||
Less short-term and current portion of long-term debt | 336 | 562 | |||||
Total long-term debt | $ | 5,869 | $ | 5,138 |
2017 | $ | 336 | |
2018 | 278 | ||
2019 | — | ||
2020 | 600 | ||
2021 | 400 | ||
Thereafter | 4,700 | ||
Total Repayments | 6,314 | ||
Unamortized discount, premium, and debt issuance cost | (109 | ) | |
Total Debt | $ | 6,205 |
Years ended December 31 | 2016 | 2015 | 2014 | ||||||||
Rental expense | $ | 400 | $ | 454 | $ | 455 | |||||
Less: Sub lease rental income | (64 | ) | (83 | ) | (75 | ) | |||||
Net rental expense | $ | 336 | $ | 371 | $ | 380 |
Years ended December 31, 2016 | Gross rental commitments | Rentals from subleases | Net rental commitments | ||||||||
2017 | $ | 355 | $ | (55 | ) | $ | 300 | ||||
2018 | 317 | (44 | ) | 273 | |||||||
2019 | 283 | (38 | ) | 245 | |||||||
2020 | 237 | (34 | ) | 203 | |||||||
2021 | 214 | (33 | ) | 181 | |||||||
Thereafter | 696 | (47 | ) | 649 | |||||||
Total minimum payments required | $ | 2,102 | $ | (251 | ) | $ | 1,851 |
Years ended December 31 | 2016 | 2015 | 2014 | ||||||||
Income before income taxes: | |||||||||||
U.K. | $ | (202 | ) | $ | 149 | $ | 347 | ||||
U.S. | (104 | ) | (51 | ) | (55 | ) | |||||
Other | 1,975 | 1,591 | 1,473 | ||||||||
Total | $ | 1,669 | $ | 1,689 | $ | 1,765 | |||||
Income tax expense (benefit): | |||||||||||
Current: | |||||||||||
U.K. | $ | (54 | ) | $ | 43 | $ | 1 | ||||
U.S. federal | 94 | 137 | 156 | ||||||||
U.S. state and local | — | 54 | 75 | ||||||||
Other | 223 | 256 | 236 | ||||||||
Total current tax expense | $ | 263 | $ | 490 | $ | 468 | |||||
Deferred tax expense (benefit): | |||||||||||
U.K. | $ | 59 | $ | (39 | ) | $ | 38 | ||||
U.S. federal | (47 | ) | (140 | ) | (133 | ) | |||||
U.S. state and local | 6 | (14 | ) | (24 | ) | ||||||
Other | (42 | ) | (30 | ) | (15 | ) | |||||
Total deferred tax benefit | $ | (24 | ) | $ | (223 | ) | $ | (134 | ) | ||
Total income tax expense | $ | 239 | $ | 267 | $ | 334 |
Years ended December 31 | 2016 | 2015 | 2014 | ||
Statutory tax rate | 20.0% | 20.3% | 21.5% | ||
U.S. state income taxes, net of U.S. federal benefit | 0.7 | 0.5 | 1.5 | ||
Taxes on international operations (1) | (8.5) | (6.0) | (8.9) | ||
Nondeductible expenses | 1.2 | 2.2 | 1.7 | ||
Adjustments to prior year tax requirements | (1.0) | (1.3) | 0.9 | ||
Adjustments to valuation allowances | (1.8) | (1.2) | 0.6 | ||
Change in uncertain tax positions | 3.0 | 1.4 | 1.7 | ||
Other — net | 0.7 | (0.1) | (0.1) | ||
Effective tax rate | 14.3% | 15.8% | 18.9% |
(1) | The Company determines the adjustment for taxes on international operations based on the difference between the statutory tax rate applicable to earnings in each foreign jurisdiction and the enacted rate of 20.0%, 20.3% and 21.5% at December 31, 2016, 2015, and 2014, respectively. The benefit to the Company’s effective income tax rate from taxes on international operations relates to benefits from lower-taxed global operations, primarily due to the use of global funding structures. |
As of December 31 | 2016 | 2015 | |||||
Deferred tax assets: | |||||||
Employee benefit plans | $ | 661 | $ | 635 | |||
Net operating/capital loss and tax credit carryforwards | 399 | 336 | |||||
Accrued interest | 166 | 293 | |||||
Other accrued expenses | 102 | 98 | |||||
Brokerage fee arrangements (1) | 66 | 66 | |||||
Deferred revenue | 57 | 65 | |||||
Investment basis differences | 48 | 56 | |||||
Other | 60 | 57 | |||||
Total | 1,559 | 1,606 | |||||
Valuation allowance on deferred tax assets | (130 | ) | (162 | ) | |||
Total | $ | 1,429 | $ | 1,444 | |||
Deferred tax liabilities: | |||||||
Intangibles and property, plant and equipment | $ | (982 | ) | $ | (961 | ) | |
Other accrued expenses | (101 | ) | (99 | ) | |||
Deferred costs | (20 | ) | (30 | ) | |||
Unrealized foreign exchange gains | (26 | ) | (29 | ) | |||
Unremitted earnings | (29 | ) | (18 | ) | |||
Other | (50 | ) | (44 | ) | |||
Total | $ | (1,208 | ) | $ | (1,181 | ) | |
Net deferred tax asset | $ | 221 | $ | 263 |
As of December 31 | 2016 | 2015 | |||||
Deferred tax assets — non-current (2) | $ | 322 | $ | 300 | |||
Deferred tax liabilities — non-current (2) | (101 | ) | (37 | ) | |||
Net deferred tax asset | $ | 221 | $ | 263 |
As of December 31 | 2016 | 2015 | |||||
UK | |||||||
Operating loss carryforwards | $ | 325 | $ | 449 | |||
Capital loss carryforwards | 294 | 360 | |||||
US | |||||||
Federal operating loss carryforwards | $ | 196 | $ | 8 | |||
State operating loss carryforwards | 474 | 443 | |||||
Other Non-US | |||||||
Operating loss carryforwards | $ | 350 | $ | 245 | |||
Capital loss carryforwards | 218 | 206 |
2016 | 2015 | ||||||
Balance at January 1 | $ | 238 | $ | 211 | |||
Additions based on tax positions related to the current year | 36 | 31 | |||||
Additions for tax positions of prior years | 20 | 53 | |||||
Reductions for tax positions of prior years | (12 | ) | (18 | ) | |||
Settlements | — | (32 | ) | ||||
Business combinations | 2 | — | |||||
Lapse of statute of limitations | (5 | ) | (5 | ) | |||
Foreign currency translation | (1 | ) | (2 | ) | |||
Balance at December 31 | $ | 278 | $ | 238 |
Year ended December 31, | ||||||||
2016 | 2015 | 2014 | ||||||
Basic weighted-average ordinary shares outstanding | 268.1 | 280.8 | 295.5 | |||||
Dilutive effect of potentially issuable shares | 2.2 | 3.0 | 4.1 | |||||
Diluted weighted-average ordinary shares outstanding | 270.3 | 283.8 | 299.6 |
Change in Fair Value of Financial Instruments (1) | Foreign Currency Translation Adjustments | Post-Retirement Benefit Obligation (2) | Total | ||||||||||||
Balance at January 1, 2014 | $ | (21 | ) | $ | 169 | $ | (2,522 | ) | $ | (2,374 | ) | ||||
Other comprehensive loss before reclassifications: | |||||||||||||||
Other comprehensive loss before reclassifications | (13 | ) | (492 | ) | (563 | ) | (1,068 | ) | |||||||
Tax benefit | 4 | (12 | ) | 229 | 221 | ||||||||||
Other comprehensive loss before reclassifications, net | (9 | ) | (504 | ) | (334 | ) | (847 | ) | |||||||
Amounts reclassified from accumulated other comprehensive loss: | |||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | 20 | — | 106 | 126 | |||||||||||
Tax benefit | (7 | ) | — | (32 | ) | (39 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive loss, net | 13 | — | 74 | 87 | |||||||||||
Net current period other comprehensive (loss) income | 4 | (504 | ) | (260 | ) | (760 | ) | ||||||||
Balance at December 31, 2014 | (17 | ) | (335 | ) | (2,782 | ) | (3,134 | ) | |||||||
Other comprehensive loss before reclassifications: | |||||||||||||||
Other comprehensive loss before reclassifications | (4 | ) | (467 | ) | 82 | (389 | ) | ||||||||
Tax benefit | 1 | 31 | (9 | ) | 23 | ||||||||||
Other comprehensive loss before reclassifications, net | (3 | ) | (436 | ) | 73 | (366 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive loss: | |||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | 11 | — | 117 | 128 | |||||||||||
Tax benefit | (16 | ) | — | (35 | ) | (51 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive loss, net | (5 | ) | — | 82 | 77 | ||||||||||
Net current period other comprehensive (loss) income | (8 | ) | (436 | ) | 155 | (289 | ) | ||||||||
Balance at December 31, 2015 | (25 | ) | (771 | ) | (2,627 | ) | (3,423 | ) | |||||||
Other comprehensive loss before reclassifications: | |||||||||||||||
Other comprehensive loss before reclassifications | (25 | ) | (490 | ) | (276 | ) | (791 | ) | |||||||
Tax benefit | 6 | (3 | ) | 74 | 77 | ||||||||||
Other comprehensive loss before reclassifications, net | (19 | ) | (493 | ) | (202 | ) | (714 | ) | |||||||
Amounts reclassified from accumulated other comprehensive loss: | |||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | 10 | — | 322 | 332 | |||||||||||
Tax benefit | (3 | ) | — | (104 | ) | (107 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive loss, net | 7 | — | 218 | 225 | |||||||||||
Net current period other comprehensive (loss) income | (12 | ) | (493 | ) | 16 | (489 | ) | ||||||||
Balance at December 31, 2016 | $ | (37 | ) | $ | (1,264 | ) | $ | (2,611 | ) | $ | (3,912 | ) |
(1) | Reclassifications from this category included in Accumulated other comprehensive loss are recorded in Other income |
(2) | Reclassifications from this category included in Accumulated other comprehensive loss are recorded in Compensation and benefits |
Years ended December 31 | 2016 | 2015 | 2014 | ||||||||
U.S. | $ | 142 | $ | 133 | $ | 123 | |||||
U.K. | 43 | 42 | 42 | ||||||||
Netherlands and Canada | 27 | 25 | 30 | ||||||||
Total | $ | 212 | $ | 200 | $ | 195 |
U.K. | U.S. | Other | |||||||||||||||||||||
(millions) | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||
Change in projected benefit obligation | |||||||||||||||||||||||
At January 1 | $ | 4,985 | $ | 5,529 | $ | 3,160 | $ | 3,350 | $ | 1,177 | $ | 1,399 | |||||||||||
Service cost | — | 1 | — | — | — | — | |||||||||||||||||
Interest cost | 158 | 198 | 111 | 131 | 29 | 33 | |||||||||||||||||
Plan amendment | (20 | ) | 27 | — | — | — | (10 | ) | |||||||||||||||
Settlements | (159 | ) | — | (281 | ) | — | — | — | |||||||||||||||
Plan transfer and acquisitions | — | (2 | ) | — | (18 | ) | — | — | |||||||||||||||
Actuarial loss (gain) | 32 | (83 | ) | (43 | ) | (25 | ) | (7 | ) | 24 | |||||||||||||
Benefit payments | (242 | ) | (217 | ) | (139 | ) | (133 | ) | (39 | ) | (38 | ) | |||||||||||
Change in discount rate | 1,079 | (247 | ) | 100 | (145 | ) | 100 | (66 | ) | ||||||||||||||
Foreign currency impact | (959 | ) | (221 | ) | — | — | (33 | ) | (165 | ) | |||||||||||||
At December 31 | $ | 4,874 | $ | 4,985 | $ | 2,908 | $ | 3,160 | $ | 1,227 | $ | 1,177 | |||||||||||
Accumulated benefit obligation at end of year | $ | 4,874 | $ | 4,985 | $ | 2,908 | $ | 3,160 | $ | 1,191 | $ | 1,135 | |||||||||||
Change in fair value of plan assets | |||||||||||||||||||||||
At January 1 | $ | 5,903 | $ | 6,224 | $ | 1,951 | $ | 2,036 | $ | 1,019 | $ | 1,161 | |||||||||||
Actual return on plan assets | 1,233 | 91 | 116 | (60 | ) | 111 | 8 | ||||||||||||||||
Employer contributions | 67 | 65 | 36 | 108 | 20 | 21 | |||||||||||||||||
Settlements | (159 | ) | — | (281 | ) | — | — | — | |||||||||||||||
Plan transfer and acquisitions | — | (3 | ) | — | — | — | — | ||||||||||||||||
Benefit payments | (242 | ) | (217 | ) | (139 | ) | (133 | ) | (39 | ) | (38 | ) | |||||||||||
Foreign currency impact | (1,127 | ) | (257 | ) | — | — | (35 | ) | (133 | ) | |||||||||||||
At December 31 | $ | 5,675 | $ | 5,903 | $ | 1,683 | $ | 1,951 | $ | 1,076 | $ | 1,019 | |||||||||||
Market related value at end of year | $ | 5,675 | $ | 5,903 | $ | 1,819 | $ | 2,064 | $ | 1,076 | $ | 1,019 | |||||||||||
Amount recognized in Statement of Financial Position at December 31 | |||||||||||||||||||||||
Funded status | $ | 801 | $ | 918 | $ | (1,225 | ) | $ | (1,209 | ) | $ | (151 | ) | $ | (158 | ) | |||||||
Unrecognized prior-service cost | 19 | 46 | 6 | 9 | (6 | ) | (7 | ) | |||||||||||||||
Unrecognized loss | 1,237 | 1,465 | 1,612 | 1,723 | 400 | 389 | |||||||||||||||||
Net amount recognized | $ | 2,057 | $ | 2,429 | $ | 393 | $ | 523 | $ | 243 | $ | 224 |
U.K. | U.S. | Other | |||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
Prepaid benefit cost (1) | $ | 836 | $ | 1,012 | $ | — | $ | — | $ | — | $ | — | |||||||||||
Accrued benefit liability (2) | (35 | ) | (94 | ) | (1,225 | ) | (1,209 | ) | (151 | ) | (158 | ) | |||||||||||
Accumulated other comprehensive loss | 1,256 | 1,511 | 1,618 | 1,732 | 394 | 382 | |||||||||||||||||
Net amount recognized | $ | 2,057 | $ | 2,429 | $ | 393 | $ | 523 | $ | 243 | $ | 224 |
(1) | Included in Prepaid pension |
(2) | Included in Other current liabilities and Pension, other post retirement, and post employment liabilities |
U.K. | U.S. | Other | |||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
Net loss | $ | 1,237 | $ | 1,465 | $ | 1,612 | $ | 1,723 | $ | 400 | $ | 389 | |||||||||||
Prior service cost (income) | 19 | 46 | 6 | 9 | (6 | ) | (7 | ) | |||||||||||||||
Total | $ | 1,256 | $ | 1,511 | $ | 1,618 | $ | 1,732 | $ | 394 | $ | 382 |
U.K. | U.S. | Other | |||||||||||||||||||||||||||||||||
2016 | 2015 | 2014 | 2016 | 2015 | 2014 | 2016 | 2015 | 2014 | |||||||||||||||||||||||||||
Service cost | $ | — | $ | 1 | $ | 1 | $ | — | $ | — | $ | 2 | $ | — | $ | — | $ | — | |||||||||||||||||
Interest cost | 158 | 198 | 230 | 111 | 131 | 129 | 29 | 33 | 47 | ||||||||||||||||||||||||||
Expected return on plan assets, net of administration expenses | (243 | ) | (307 | ) | (326 | ) | (156 | ) | (154 | ) | (157 | ) | (48 | ) | (50 | ) | (59 | ) | |||||||||||||||||
Amortization of prior-service cost | 2 | 1 | 1 | 2 | 2 | 2 | — | — | — | ||||||||||||||||||||||||||
Amortization of net actuarial loss | 31 | 41 | 52 | 50 | 54 | 42 | 10 | 11 | 10 | ||||||||||||||||||||||||||
Net periodic benefit (income) cost | (52 | ) | (66 | ) | (42 | ) | 7 | 33 | 18 | (9 | ) | (6 | ) | (2 | ) | ||||||||||||||||||||
Settlement expense | 61 | — | — | 158 | — | — | — | — | — | ||||||||||||||||||||||||||
Curtailment gain and other | — | — | — | — | — | — | — | — | (2 | ) | |||||||||||||||||||||||||
Total net periodic benefit cost (income) | $ | 9 | $ | (66 | ) | $ | (42 | ) | $ | 165 | $ | 33 | $ | 18 | $ | (9 | ) | $ | (6 | ) | $ | (4 | ) |
U.K. | U.S. | Other | |||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||
Discount rate | 2.77% | 3.96% | 3.53-4.11% | 3.69-4.43% | 1.85-3.81% | 2.43-3.96% | |||||
Rate of compensation increase | 3.70 - 4.20% | 3.63-4.13% | N/A | N/A | 1.00-3.50% | 2.00-3.50% | |||||
Underlying price inflation | 1.83% | 1.88% | N/A | N/A | 2.00-2.50% | 2.00-2.50% |
U.K. | U.S. | Other | |||||||||||||||
2016 | 2015 | 2014 | 2016 | 2015 | 2014 | 2016 | 2015 | 2014 | |||||||||
Discount rate | 3.96% | 3.70% | 4.55% | 3.69 - 4.43% | 3.37 - 4.08% | 3.97 - 4.87% | 2.43 - 3.96% | 2.03 - 3.91% | 3.60 - 4.71% | ||||||||
Expected return on plan assets, net of administration expenses | 4.55% | 5.09% | 6.00% | 7.81% | 7.96% | 8.80% | 3.47 - 4.95% | 3.99 - 5.21% | 4.70 - 6.50% | ||||||||
Rate of compensation increase | 3.63 - 4.13% | 3.55 - 4.05% | 3.70 - 4.40% | N/A | N/A | N/A | 2.00 - 3.50% | 2.25 - 3.50% | 2.25 - 3.50% |
Fair Value Measurements Using | |||||||||||||||
Asset Category | Balance at December 31, 2016 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||
Cash and cash equivalents (1) | $ | 100 | $ | 100 | $ | — | $ | — | |||||||
Equity investments: | |||||||||||||||
Large cap domestic | 268 | 268 | — | — | |||||||||||
Small cap domestic | 15 | 15 | — | — | |||||||||||
International | 64 | 64 | — | — | |||||||||||
Equity derivatives | 81 | 78 | 3 | — | |||||||||||
Pooled funds: | |||||||||||||||
International (2) | 196 | — | — | — | |||||||||||
Small cap domestic (2) | 52 | — | — | — | |||||||||||
Fixed income investments: (3) | |||||||||||||||
Corporate bonds | 105 | — | 105 | — | |||||||||||
Government and agency bonds | 132 | 76 | 56 | — | |||||||||||
Asset-backed securities | — | — | — | — | |||||||||||
Fixed income derivatives | 65 | 65 | — | — | |||||||||||
Pooled funds: | |||||||||||||||
Corporate bonds (2) | 255 | — | — | — | |||||||||||
Other investments: | |||||||||||||||
Commodity derivatives (4) | 22 | — | 22 | — | |||||||||||
Real estate and REITS (5) | 61 | 61 | — | — | |||||||||||
Alternative investments (2) (6) | 267 | — | — | — | |||||||||||
Total | $ | 1,683 | $ | 727 | $ | 186 | $ | — |
(1) | Consists of cash and institutional short-term investment funds. |
(2) | Certain investments that are measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the above table are intended to permit reconciliation of the fair values to the amounts presented in the plan assets contained in this Note. |
(3) | Consists of corporate and government bonds, asset-backed securities, and fixed income derivatives. |
(4) | Consists of long-dated options and swaps on a commodity index. |
(5) | Consists of exchange traded real estate investment trusts (“REITS”). |
(6) | Consists of limited partnerships, private equity and hedge funds. |
Fair Value Measurements Using | |||||||||||||||
Asset Category | Balance at December 31, 2015 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||
Cash and cash equivalents (1) | $ | 33 | $ | 33 | $ | — | $ | — | |||||||
Equity investments: | |||||||||||||||
Large cap domestic | 299 | 299 | — | — | |||||||||||
Small cap domestic | 30 | 30 | — | — | |||||||||||
International | 52 | 52 | — | — | |||||||||||
Equity derivatives | 203 | 170 | 33 | — | |||||||||||
Pooled funds: | |||||||||||||||
International (2) | 210 | — | — | — | |||||||||||
Small cap domestic (2) | 58 | — | — | — | |||||||||||
Fixed income investments: (3) | |||||||||||||||
Corporate bonds | 148 | — | 148 | — | |||||||||||
Government and agency bonds | 128 | 52 | 76 | — | |||||||||||
Asset-backed securities | — | — | — | — | |||||||||||
Fixed income derivatives | 69 | 47 | 22 | — | |||||||||||
Pooled funds: | |||||||||||||||
Corporate bonds (2) | 336 | — | — | — | |||||||||||
Other investments: | |||||||||||||||
Commodity derivatives (4) | 13 | — | 13 | — | |||||||||||
Real estate and REITS (5) | 67 | 67 | — | — | |||||||||||
Alternative investments (2) (6) | 305 | — | — | — | |||||||||||
Total | $ | 1,951 | $ | 750 | $ | 292 | $ | — |
(1) | Consists of cash and institutional short-term investment funds. |
(2) | Certain investments that are measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the above table are intended to permit reconciliation of the fair values to the amounts presented in the plan assets contained in this Note. |
(3) | Consists of corporate and government bonds, asset-backed securities, and fixed income derivatives. |
(4) | Consists of long-dated options on a commodity index. |
(5) | Consists of exchange traded REITS. |
(6) | Consists of limited partnerships, private equity and hedge funds. |
Fair Value Measurements Using | |||||||||||||||
Balance at December 31, 2016 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Cash and cash equivalents (1) | $ | 86 | $ | 86 | $ | — | $ | — | |||||||
Equity investments: | |||||||||||||||
Global | 135 | 135 | — | — | |||||||||||
Pooled funds: | |||||||||||||||
Global (2) | 365 | — | — | — | |||||||||||
Europe (2) | 18 | — | — | — | |||||||||||
Fixed income investments: (3) | |||||||||||||||
Derivatives (4) | 10 | — | 10 | — | |||||||||||
Fixed income securities (5) | 2,129 | 1,726 | 403 | — | |||||||||||
Annuities | 1,773 | — | — | 1,773 | |||||||||||
Pooled funds: | |||||||||||||||
Derivatives (2) | 62 | — | — | — | |||||||||||
Fixed income securities (2) | 223 | — | — | — | |||||||||||
Other investments: | |||||||||||||||
Real estate (2) (6) | 101 | — | — | — | |||||||||||
Alternative investments (2) (7) | 773 | — | — | — | |||||||||||
Total | $ | 5,675 | $ | 1,947 | $ | 413 | $ | 1,773 |
(1) | Consists of cash and institutional short-term investment funds. |
(2) | Certain investments that are measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the above table are intended to permit reconciliation of the fair values to the amounts presented in the plan assets contained in this Note. |
(3) | Consists of various equity, fixed income, commodity, and real estate mutual fund type investment vehicles. |
(4) | Consists of equity securities and equity derivatives. |
(5) | Consists of corporate and government bonds and fixed income derivatives. |
(6) | Consists of property funds and trusts holding direct real estate investments. |
(7) | Consists of limited partnerships, private equity and hedge funds. |
Fair Value Measurements Using | |||||||||||||||
Balance at December 31, 2015 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Cash and cash equivalents (1) | $ | 159 | $ | 159 | $ | — | $ | — | |||||||
Equity investments: | |||||||||||||||
Derivatives | 66 | — | 66 | — | |||||||||||
Global | 133 | 133 | — | — | |||||||||||
Pooled funds: | |||||||||||||||
Global (2) | 360 | — | — | — | |||||||||||
Europe (2) | 17 | — | — | — | |||||||||||
Fixed income investments: (3) | |||||||||||||||
Derivatives (4) | 111 | — | 111 | — | |||||||||||
Fixed income securities (5) | 3,145 | 2,268 | 877 | — | |||||||||||
Annuities | 827 | — | — | 827 | |||||||||||
Pooled funds: | |||||||||||||||
Fixed income securities (2) | 283 | — | — | — | |||||||||||
Other investments: | |||||||||||||||
Real estate (2) (6) | 85 | — | — | — | |||||||||||
Alternative investments (2) (7) | 717 | — | — | — | |||||||||||
Total | $ | 5,903 | $ | 2,560 | $ | 1,054 | $ | 827 |
(1) | Consists of cash and institutional short-term investment funds. |
(2) | Certain investments that are measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the above table are intended to permit reconciliation of the fair values to the amounts presented in the plan assets contained in this Note. |
(3) | Consists of various equity, fixed income, commodity, and real estate mutual fund type investment vehicles. |
(4) | Consists of equity securities and equity derivatives. |
(5) | Consists of corporate and government bonds and fixed income derivatives. |
(6) | Consists of property funds and trusts holding direct real estate investments. |
(7) | Consists of limited partnerships, private equity and hedge funds. |
Fair Value Measurements Using Level 3 Inputs | Annuities | ||
Balance at January 1, 2015 | $ | 836 | |
Actual return on plan assets: | |||
Relating to assets still held at December 31, 2015 | (32 | ) | |
Purchases, sales and settlements—net | 58 | ||
Foreign exchange | (35 | ) | |
Balance at December 31, 2015 | 827 | ||
Actual return on plan assets: | |||
Relating to assets still held at December 31, 2016 | 7 | ||
Purchases, sales and settlements—net | 1,248 | ||
Foreign exchange | (309 | ) | |
Balance at December 31, 2016 | $ | 1,773 |
Fair Value Measurements Using | |||||||||||||||
Balance at December 31, 2016 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Cash and cash equivalents | $ | 11 | $ | 11 | $ | — | $ | — | |||||||
Equity investments: | |||||||||||||||
Pooled funds: | |||||||||||||||
Global (1) | 322 | — | — | — | |||||||||||
North America (1) | 36 | — | — | — | |||||||||||
Derivatives (1) | 20 | — | — | — | |||||||||||
Fixed income investments: | |||||||||||||||
Fixed income securities (2) | 166 | — | 166 | — | |||||||||||
Derivatives (2) | 37 | — | 37 | — | |||||||||||
Pooled funds: | |||||||||||||||
Fixed income securities (1) | 469 | — | — | — | |||||||||||
Other investments: | |||||||||||||||
Alternative investments (1) (3) | 9 | — | — | — | |||||||||||
Pooled funds: | |||||||||||||||
REITS (1) (4) | 6 | — | — | — | |||||||||||
Total | $ | 1,076 | $ | 11 | $ | 203 | $ | — |
(1) | Certain investments that are measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the above table are intended to permit reconciliation of the fair values to the amounts presented in the plan assets contained in this Note. |
(2) | Consists of corporate and government bonds and fixed income derivatives. |
(3) | Consists of limited partnerships, private equity and hedge funds. |
(4) | Consists of property funds and trusts holding direct real estate investments. |
Fair Value Measurements Using | |||||||||||||||
Balance at December 31, 2015 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Cash and cash equivalents | $ | 11 | $ | 11 | $ | — | $ | — | |||||||
Equity investments: | |||||||||||||||
Pooled funds: | |||||||||||||||
Global (1) | 270 | — | — | — | |||||||||||
North America (1) | 37 | — | — | — | |||||||||||
Derivatives (1) | 21 | — | — | — | |||||||||||
Fixed income investments: | |||||||||||||||
Fixed income securities (2) | 30 | — | 30 | — | |||||||||||
Derivatives (2) | 48 | — | 48 | — | |||||||||||
Pooled funds: | |||||||||||||||
Fixed income securities (1) | 576 | — | — | — | |||||||||||
Derivatives (1) | 12 | — | — | — | |||||||||||
Other investments: | |||||||||||||||
Alternative investments (1) (3) | 9 | — | — | — | |||||||||||
Pooled funds: | |||||||||||||||
Commodities (1) | 2 | — | — | — | |||||||||||
REITS (1) (4) | 3 | — | — | — | |||||||||||
Total | $ | 1,019 | $ | 11 | $ | 78 | $ | — |
(1) | Certain investments that are measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the above table are intended to permit reconciliation of the fair values to the amounts presented in the plan assets contained in this Note. |
(2) | Consists of corporate and government bonds and fixed income derivatives. |
(3) | Consists of limited partnerships, private equity and hedge funds. |
(4) | Consists of property funds and trusts holding direct real estate investments. |
U.K. | U.S. | Other | ||||||||||
2017 | $ | 124 | $ | 168 | $ | 39 | ||||||
2018 | 130 | 180 | 40 | |||||||||
2019 | 140 | 187 | 40 | |||||||||
2020 | 148 | 191 | 41 | |||||||||
2021 | 156 | 185 | 42 | |||||||||
2022 – 2026 | 892 | 893 | 228 |
2016 | 2015 | ||||||
Accumulated projected benefit obligation | $ | 110 | $ | 105 | |||
Fair value of plan assets | 18 | 18 | |||||
Funded status | (92 | ) | (87 | ) | |||
Unrecognized prior-service credit | (3 | ) | (3 | ) | |||
Unrecognized loss | 10 | 7 | |||||
Net amount recognized | $ | (85 | ) | $ | (83 | ) |
2016 | 2015 | 2014 | |||
Net periodic benefit cost recognized (millions) | $5 | $6 | $3 | ||
Weighted-average discount rate used to determine future benefit obligations | 3.71-4.15% | 3.99-4.33% | 3.83 - 4.08 | ||
Weighted-average discount rate used to determine net periodic benefit costs | 3.99-4.33% | 3.83-4.08% | 4.44 - 4.95 |
• | To contribute $4 million to fund significant other post-retirement benefit plans during 2017. |
• | Estimated future benefit payments will be approximately $6 million each year for 2017 through 2021, and $30 million in aggregate for 2022-2026. |
Years ended December 31 | 2016 | 2015 | 2014 | ||||||||
Restricted share units (“RSUs”) | $ | 194 | $ | 201 | $ | 187 | |||||
Performance share awards ("PSAs") | 125 | 127 | 132 | ||||||||
Employee share purchase plans | 12 | 11 | 9 | ||||||||
Total share-based compensation expense | 331 | 339 | 328 | ||||||||
Tax benefit | 94 | 95 | 94 | ||||||||
Share-based compensation expense, net of tax | $ | 237 | $ | 244 | $ | 234 |
Years ended December 31 | 2016 | 2015 | 2014 | |||||||||||||||||
Shares | Fair Value (1) | Shares | Fair Value (1) | Shares | Fair Value (1) | |||||||||||||||
Non-vested at beginning of year | 7,167 | $ | 77 | 8,381 | $ | 63 | 9,759 | $ | 51 | |||||||||||
Granted | 2,252 | 101 | 2,459 | 97 | 2,844 | 84 | ||||||||||||||
Vested | (2,845 | ) | 70 | (3,385 | ) | 58 | (3,732 | ) | 49 | |||||||||||
Forfeited | (379 | ) | 82 | (288 | ) | 71 | (490 | ) | 58 | |||||||||||
Non-vested at end of year | 6,195 | 89 | 7,167 | 77 | 8,381 | 63 |
(1) | Represents per share weighted average fair value of award at date of grant. |
2016 | 2015 | 2014 | |||||||||
Target PSAs granted per share | 783 | 993 | 816 | ||||||||
Weighted average fair value per share at date of grant | $ | 100 | $ | 96 | $ | 81 | |||||
Number of shares that would be issued based on current performance levels | 777 | 1,437 | 1,540 | ||||||||
Unamortized expense, based on current performance levels | $ | 57 | $ | 48 | $ | — |
Notional Amount | Derivative Assets (1) | Derivative Liabilities (2) | |||||||||||||||||||||
As of December 31 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||
Foreign exchange contracts: | |||||||||||||||||||||||
Accounted for as hedges | $ | 758 | $ | 778 | $ | 14 | $ | 32 | $ | 13 | $ | 18 | |||||||||||
Not accounted for as hedges (3) | 189 | 280 | 1 | — | 1 | — | |||||||||||||||||
Total | $ | 947 | $ | 1,058 | $ | 15 | $ | 32 | $ | 14 | $ | 18 |
(1) | Included within Other current assets ($6 million in 2016 and $15 million in 2015, respectively) or Other non-current assets ($9 million in 2016 and $17 million in 2015, respectively) |
(2) | Included within Other current liabilities ($7 million in 2016 and $13 million in 2015, respectively) or Other non-current liabilities ($7 million in 2016 and $5 million in 2015, respectively) |
(3) | These contracts typically are for 30 day durations and executed close to the last day of the most recent reporting month, thereby resulting in nominal fair values at the balance sheet date. |
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Statement of Financial Position | Net Amounts of Assets Presented in the Statement of Financial Position (1) | |||||||||||||||||||||
Derivatives accounted for as hedges: | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||
Foreign exchange contracts | $ | 14 | $ | 32 | $ | (1 | ) | $ | (13 | ) | $ | 13 | $ | 19 |
(1) | Included within Other current assets ($4 million in 2016 and $6 million in 2015, respectively) or Other non-current assets ($9 million in 2016 and $13 million in 2015, respectively) |
Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Statement of Financial Position | Net Amounts of Liabilities Presented in the Statement of Financial Position (1) | |||||||||||||||||||||
Derivatives accounted for as hedges: | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||
Foreign exchange contracts | $ | 13 | $ | 18 | $ | (1 | ) | $ | (13 | ) | $ | 12 | $ | 5 |
(1) | Included within Other current liabilities ($5 million in 2016 and $4 million in 2015, respectively) or Other non-current liabilities ($7 million in 2016 and $1 million in 2015, respectively) |
Cash Flow Hedge - Foreign Exchange Contracts | Location of future reclassification from Accumulated Other Comprehensive Loss | Gain (Loss) Recognized in Accumulated Other Comprehensive Loss: | ||||||||||||||||||
Compensation and Benefits | Other General Expenses | Interest Expense | Other Income (Expense) | Total | ||||||||||||||||
2016 | $ | 8 | $ | (13 | ) | $ | — | $ | (20 | ) | $ | (25 | ) | |||||||
2015 | 4 | (3 | ) | — | (10 | ) | (9 | ) | ||||||||||||
2014 | 11 | (3 | ) | — | (10 | ) | (2 | ) |
Cash Flow Hedge - Foreign Exchange Contracts | Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion): | |||||||||||||||||||
Compensation and Benefits | Other General Expenses | Interest Expense | Other Income | Total | ||||||||||||||||
2016 | $ | 2 | $ | (4 | ) | $ | (1 | ) | $ | (7 | ) | $ | (10 | ) | ||||||
2015 | 4 | (1 | ) | (9 | ) | (11 | ) | (17 | ) | |||||||||||
2014 | (5 | ) | 3 | (10 | ) | (2 | ) | (14 | ) |
• | Level 1 — observable inputs such as quoted prices for identical assets in active markets; |
• | Level 2 — inputs other than quoted prices for identical assets in active markets, that are observable either directly or indirectly; and |
• | Level 3 — unobservable inputs in which there is little or no market data which requires the use of valuation techniques and the development of assumptions. |
Fair Value Measurements Using | |||||||||||||||
Balance at December 31, 2016 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Assets: | |||||||||||||||
Money market funds (1) | $ | 1,371 | $ | 1,371 | $ | — | $ | — | |||||||
Other investments: | |||||||||||||||
Government bonds | 1 | — | 1 | — | |||||||||||
Equity investments | 9 | 6 | 3 | — | |||||||||||
Derivatives (2): | |||||||||||||||
Foreign exchange contracts | 15 | — | 15 | — | |||||||||||
Liabilities: | |||||||||||||||
Derivatives: | |||||||||||||||
Foreign exchange contracts | 14 | — | 14 | — |
(1) | Included within Fiduciary assets, Short-term investments or Cash and cash equivalents in the Consolidated Statements of Financial Position, depending on their nature and initial maturity. |
(2) | Refer to Note 12 “Derivatives and Hedging” for additional information regarding the Company’s derivatives and hedging activity. |
Fair Value Measurements Using | |||||||||||||||
Balance at December 31, 2015 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Assets: | |||||||||||||||
Money market funds (1) | $ | 1,396 | $ | 1,396 | $ | — | $ | — | |||||||
Other investments: | |||||||||||||||
Government bonds | 1 | — | 1 | — | |||||||||||
Equity investments | 10 | 6 | 4 | — | |||||||||||
Derivatives (2): | |||||||||||||||
Foreign exchange contracts | 32 | — | 32 | — | |||||||||||
Liabilities: | |||||||||||||||
Derivatives: | |||||||||||||||
Foreign exchange contracts | 18 | — | 18 | — |
(1) | Included within Fiduciary assets, Short-term investments or Cash and cash equivalents in the Consolidated Statements of Financial Position, depending on their nature and initial maturity. |
(2) | Refer to Note 12 “Derivatives and Hedging” for additional information regarding the Company’s derivatives and hedging activity. |
2016 | 2015 | ||||||||||||||
As of December 31 | Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||
Long-term debt | $ | 5,869 | $ | 6,264 | $ | 5,138 | $ | 5,386 |
Years ended December 31 | 2016 | 2015 | 2014 | ||||||||
Risk Solutions | $ | 7,485 | $ | 7,426 | $ | 7,834 | |||||
HR Solutions | 4,183 | 4,303 | 4,264 | ||||||||
Intersegment eliminations | (41 | ) | (47 | ) | (53 | ) | |||||
Total revenue | $ | 11,627 | $ | 11,682 | $ | 12,045 |
Years ended December 31 | 2016 | 2015 | 2014 | ||||||||
Retail brokerage | $ | 6,096 | $ | 6,044 | $ | 6,334 | |||||
Reinsurance brokerage | 1,367 | 1,361 | 1,474 | ||||||||
Total Risk Solutions Segment | 7,463 | 7,405 | 7,808 | ||||||||
Consulting services | 1,662 | 1,686 | 1,700 | ||||||||
Outsourcing | 2,557 | 2,658 | 2,607 | ||||||||
Intrasegment | (36 | ) | (41 | ) | (43 | ) | |||||
Total HR Solutions Segment | 4,183 | 4,303 | 4,264 | ||||||||
Intersegment | (41 | ) | (47 | ) | (53 | ) | |||||
Total commissions, fees and other revenue | $ | 11,605 | $ | 11,661 | $ | 12,019 |
Years ended December 31 | 2016 | 2015 | 2014 | ||||||||
Risk Solutions | $ | 22 | $ | 21 | $ | 26 | |||||
HR Solutions | — | — | — | ||||||||
Total fiduciary investment income | $ | 22 | $ | 21 | $ | 26 |
Years ended December 31 | 2016 | 2015 | 2014 | ||||||||
Risk Solutions | $ | 1,587 | $ | 1,506 | $ | 1,648 | |||||
HR Solutions | 557 | 536 | 485 | ||||||||
Segment income before income taxes | 2,144 | 2,042 | 2,133 | ||||||||
Unallocated expenses | (238 | ) | (194 | ) | (167 | ) | |||||
Interest income | 9 | 14 | 10 | ||||||||
Interest expense | (282 | ) | (273 | ) | (255 | ) | |||||
Other income | 36 | 100 | 44 | ||||||||
Income before income taxes | $ | 1,669 | $ | 1,689 | $ | 1,765 |
Years ended December 31 | Total | United States | Americas other than U.S. | United Kingdom | Europe, Middle East, & Africa | Asia Pacific | ||||||||||||||||
2016 | 11,627 | $ | 6,078 | $ | 995 | $ | 1,378 | $ | 1,760 | $ | 1,416 | |||||||||||
2015 | 11,682 | 6,063 | 1,053 | 1,527 | 1,909 | 1,130 | ||||||||||||||||
2014 | 12,045 | 5,824 | 1,176 | 1,623 | 2,189 | 1,233 |
As of December 31, 2016 | Total | United States | Americas other than U.S. | United Kingdom | Europe, Middle East, & Africa | Asia Pacific | ||||||||||||||||
Fixed assets, net | 765 | $ | 443 | $ | 62 | $ | 65 | $ | 85 | $ | 110 | |||||||||||
Goodwill, intangible assets and other | 12,382 | 6,947 | 887 | 2,091 | 2,054 | 403 | ||||||||||||||||
Total | 13,147 | 7,390 | 949 | 2,156 | 2,139 | 513 |
As of December 31, 2015 | Total | United States | Americas other than U.S. | United Kingdom | Europe, Middle East, & Africa | Asia Pacific | ||||||||||||||||
Fixed assets, net | 765 | $ | 432 | $ | 48 | $ | 89 | $ | 89 | $ | 107 | |||||||||||
Goodwill, intangible assets and other | 12,253 | 6,635 | 368 | 2,606 | 2,181 | 463 | ||||||||||||||||
Total | 13,018 | 7,067 | 416 | 2,695 | 2,270 | 570 |
Year Ended December 31, 2016 | |||||||||||||||||||
(millions) | Aon plc | Aon Corporation | Other Non-Guarantor Subsidiaries | Consolidating Adjustments | Consolidated | ||||||||||||||
Revenue | |||||||||||||||||||
Commissions, fees and other | $ | — | $ | — | $ | 11,605 | $ | — | $ | 11,605 | |||||||||
Fiduciary investment income | — | — | 22 | — | 22 | ||||||||||||||
Total revenue | — | — | 11,627 | — | 11,627 | ||||||||||||||
Expenses | |||||||||||||||||||
Compensation and benefits | 130 | 171 | 6,613 | — | 6,914 | ||||||||||||||
Other general expenses | — | 2 | 2,805 | — | 2,807 | ||||||||||||||
Total operating expenses | 130 | 173 | 9,418 | — | 9,721 | ||||||||||||||
Operating (loss) income | (130 | ) | (173 | ) | 2,209 | — | 1,906 | ||||||||||||
Interest income | — | 16 | 22 | (29 | ) | 9 | |||||||||||||
Interest expense | (196 | ) | (101 | ) | (14 | ) | 29 | (282 | ) | ||||||||||
Intercompany interest income (expense) | 14 | (541 | ) | 527 | — | — | |||||||||||||
Intercompany other income (expense) | 274 | (361 | ) | 87 | — | — | |||||||||||||
Other income (expense) | 15 | (5 | ) | 44 | (18 | ) | 36 | ||||||||||||
Income (loss) before taxes | (23 | ) | (1,165 | ) | 2,875 | (18 | ) | 1,669 | |||||||||||
Income tax expense (benefit) | (55 | ) | (325 | ) | 619 | — | 239 | ||||||||||||
Income (loss) before equity in earnings of subsidiaries | 32 | (840 | ) | 2,256 | (18 | ) | 1,430 | ||||||||||||
Equity in earnings of subsidiaries, net of tax | 1,382 | 1,219 | 379 | (2,980 | ) | — | |||||||||||||
Net income | 1,414 | 379 | 2,635 | (2,998 | ) | 1,430 | |||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 34 | — | 34 | ||||||||||||||
Net income attributable to Aon shareholders | $ | 1,414 | $ | 379 | $ | 2,601 | $ | (2,998 | ) | $ | 1,396 |
Year Ended December 31, 2015 | |||||||||||||||||||
(millions) | Aon plc | Aon Corporation | Other Non-Guarantor Subsidiaries | Consolidating Adjustments | Consolidated | ||||||||||||||
Revenue | |||||||||||||||||||
Commissions, fees and other | $ | — | $ | — | $ | 11,661 | $ | — | $ | 11,661 | |||||||||
Fiduciary investment income | — | — | 21 | — | 21 | ||||||||||||||
Total revenue | — | — | 11,682 | — | 11,682 | ||||||||||||||
Expenses | |||||||||||||||||||
Compensation and benefits | 136 | 32 | 6,669 | — | 6,837 | ||||||||||||||
Other general expenses | 8 | 7 | 2,982 | — | 2,997 | ||||||||||||||
Total operating expenses | 144 | 39 | 9,651 | — | 9,834 | ||||||||||||||
Operating (loss) income | (144 | ) | (39 | ) | 2,031 | — | 1,848 | ||||||||||||
Interest income | — | 14 | 19 | (19 | ) | 14 | |||||||||||||
Interest expense | (140 | ) | (130 | ) | (22 | ) | 19 | (273 | ) | ||||||||||
Intercompany interest income (expense) | 429 | (479 | ) | 50 | — | — | |||||||||||||
Intercompany other income (expense) | 302 | (422 | ) | 120 | — | — | |||||||||||||
Other income (expense) | (1 | ) | — | 101 | — | 100 | |||||||||||||
Income (loss) before taxes | 446 | (1,056 | ) | 2,299 | — | 1,689 | |||||||||||||
Income tax expense (benefit) | 45 | (262 | ) | 484 | — | 267 | |||||||||||||
Income (loss) before equity in earnings of subsidiaries | 401 | (794 | ) | 1,815 | — | 1,422 | |||||||||||||
Equity in earnings of subsidiaries, net of tax | 984 | 1,290 | 496 | (2,770 | ) | — | |||||||||||||
Net income | 1,385 | 496 | 2,311 | (2,770 | ) | 1,422 | |||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 37 | — | 37 | ||||||||||||||
Net income attributable to Aon shareholders | $ | 1,385 | $ | 496 | $ | 2,274 | $ | (2,770 | ) | $ | 1,385 |
Year Ended December 31, 2014 | |||||||||||||||||||
(millions) | Aon plc | Aon Corporation | Other Non-Guarantor Subsidiaries | Consolidating Adjustment | Consolidated | ||||||||||||||
Revenue | |||||||||||||||||||
Commissions, fees and other | $ | — | $ | — | $ | 12,019 | $ | — | $ | 12,019 | |||||||||
Fiduciary investment income | — | — | 26 | — | 26 | ||||||||||||||
Total revenue | — | — | 12,045 | — | 12,045 | ||||||||||||||
Expenses | |||||||||||||||||||
Compensation and benefits | 140 | 16 | 6,858 | — | 7,014 | ||||||||||||||
Other general expenses | 3 | 5 | 3,057 | — | 3,065 | ||||||||||||||
Total operating expenses | 143 | 21 | 9,915 | — | 10,079 | ||||||||||||||
Operating (loss) income | (143 | ) | (21 | ) | 2,130 | — | 1,966 | ||||||||||||
Interest income | — | 2 | 17 | (9 | ) | 10 | |||||||||||||
Interest expense | (84 | ) | (139 | ) | (41 | ) | 9 | (255 | ) | ||||||||||
Intercompany interest (expense) income | 449 | (298 | ) | (151 | ) | — | — | ||||||||||||
Intercompany other (expense) income | 342 | (390 | ) | 48 | — | — | |||||||||||||
Other income | 2 | 5 | 37 | — | 44 | ||||||||||||||
Income (loss) before taxes | 566 | (841 | ) | 2,040 | — | 1,765 | |||||||||||||
Income tax (benefit) expense | 74 | (192 | ) | 452 | — | 334 | |||||||||||||
Income (loss) before equity in earnings of subsidiaries | 492 | (649 | ) | 1,588 | — | 1,431 | |||||||||||||
Equity in earnings of subsidiaries, net of tax | 905 | 1,195 | 546 | (2,646 | ) | — | |||||||||||||
Net income | 1,397 | 546 | 2,134 | (2,646 | ) | 1,431 | |||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 34 | — | 34 | ||||||||||||||
Net income attributable to Aon shareholders | $ | 1,397 | $ | 546 | $ | 2,100 | $ | (2,646 | ) | $ | 1,397 |
Year Ended December 31, 2016 | |||||||||||||||||||
(millions) | Aon plc | Aon Corporation | Other Non-Guarantor Subsidiaries | Consolidating Adjustments | Consolidated | ||||||||||||||
Net income | $ | 1,414 | $ | 379 | $ | 2,635 | $ | (2,998 | ) | $ | 1,430 | ||||||||
Less: Net income attributable to noncontrolling interests | — | — | 34 | — | 34 | ||||||||||||||
Net income attributable to Aon shareholders | $ | 1,414 | $ | 379 | $ | 2,601 | $ | (2,998 | ) | $ | 1,396 | ||||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||||||
Change in fair value of financial instruments | — | (1 | ) | (11 | ) | — | (12 | ) | |||||||||||
Foreign currency translation adjustments | (2 | ) | 21 | (532 | ) | 18 | (495 | ) | |||||||||||
Post-retirement benefit obligation | — | 68 | (52 | ) | — | 16 | |||||||||||||
Total other comprehensive income (loss) | (2 | ) | 88 | (595 | ) | 18 | (491 | ) | |||||||||||
Equity in other comprehensive loss of subsidiaries, net of tax | (505 | ) | (547 | ) | (459 | ) | 1,511 | — | |||||||||||
Less: Other comprehensive loss attributable to noncontrolling interests | — | — | (2 | ) | — | (2 | ) | ||||||||||||
Total other comprehensive loss attributable to Aon shareholders | (507 | ) | (459 | ) | (1,052 | ) | 1,529 | (489 | ) | ||||||||||
Comprehensive income (loss) attributable to Aon shareholders | $ | 907 | $ | (80 | ) | $ | 1,549 | $ | (1,469 | ) | $ | 907 |
Year Ended December 31, 2015 | |||||||||||||||||||
(millions) | Aon plc | Aon Corporation | Other Non-Guarantor Subsidiaries | Consolidating Adjustments | Consolidated | ||||||||||||||
Net income | $ | 1,385 | $ | 496 | $ | 2,311 | $ | (2,770 | ) | $ | 1,422 | ||||||||
Less: Net income attributable to noncontrolling interests | — | — | 37 | — | 37 | ||||||||||||||
Net income attributable to Aon shareholders | $ | 1,385 | $ | 496 | $ | 2,274 | $ | (2,770 | ) | $ | 1,385 | ||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||
Change in fair value of financial instruments | — | — | (8 | ) | — | (8 | ) | ||||||||||||
Foreign currency translation adjustments | — | (47 | ) | (395 | ) | — | (442 | ) | |||||||||||
Post-retirement benefit obligation | — | 12 | 143 | — | 155 | ||||||||||||||
Total other comprehensive loss | — | (35 | ) | (260 | ) | — | (295 | ) | |||||||||||
Equity in other comprehensive loss of subsidiaries, net of tax | (289 | ) | (259 | ) | (294 | ) | 842 | — | |||||||||||
Less: Other comprehensive loss attributable to noncontrolling interests | — | — | (6 | ) | — | (6 | ) | ||||||||||||
Total other comprehensive loss attributable to Aon shareholders | (289 | ) | (294 | ) | (548 | ) | 842 | (289 | ) | ||||||||||
Comprehensive income attributable to Aon shareholders | $ | 1,096 | $ | 202 | $ | 1,726 | $ | (1,928 | ) | $ | 1,096 |
Year Ended December 31, 2014 | |||||||||||||||||||
(millions) | Aon plc | Aon Corporation | Other Non-Guarantor Subsidiaries | Consolidating Adjustments | Consolidated | ||||||||||||||
Net income | $ | 1,397 | $ | 546 | $ | 2,134 | $ | (2,646 | ) | $ | 1,431 | ||||||||
Less: Net income attributable to noncontrolling interests | — | — | 34 | — | 34 | ||||||||||||||
Net income attributable to Aon shareholders | $ | 1,397 | $ | 546 | $ | 2,100 | $ | (2,646 | ) | $ | 1,397 | ||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||
Change in fair value of financial instruments | — | (3 | ) | 7 | — | 4 | |||||||||||||
Foreign currency translation adjustments | — | (31 | ) | (476 | ) | — | (507 | ) | |||||||||||
Post-retirement benefit obligation | — | (315 | ) | 55 | — | (260 | ) | ||||||||||||
Total other comprehensive loss | — | (349 | ) | (414 | ) | — | (763 | ) | |||||||||||
Equity in other comprehensive loss of subsidiaries, net of tax | (760 | ) | (409 | ) | (758 | ) | 1,927 | — | |||||||||||
Less: Other comprehensive loss attributable to noncontrolling interests | — | — | (3 | ) | — | (3 | ) | ||||||||||||
Total other comprehensive loss attributable to Aon shareholders | (760 | ) | (758 | ) | (1,169 | ) | 1,927 | (760 | ) | ||||||||||
Comprehensive income (loss) attributable to Aon shareholders | $ | 637 | $ | (212 | ) | $ | 931 | $ | (719 | ) | $ | 637 |
As of December 31, 2016 | |||||||||||||||||||
(millions) | Aon plc | Aon Corporation | Other Non-Guarantor Subsidiaries | Consolidating Adjustments | Consolidated | ||||||||||||||
ASSETS | |||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 1,633 | $ | 660 | $ | (1,862 | ) | $ | 431 | ||||||||
Short-term investments | — | 140 | 150 | — | 290 | ||||||||||||||
Receivables, net | — | 3 | 2,586 | — | 2,589 | ||||||||||||||
Fiduciary assets | — | — | 9,485 | — | 9,485 | ||||||||||||||
Intercompany receivables | 105 | 1,880 | 9,825 | (11,810 | ) | — | |||||||||||||
Other current assets | — | 25 | 326 | — | 351 | ||||||||||||||
Total Current Assets | 105 | 3,681 | 23,032 | (13,672 | ) | 13,146 | |||||||||||||
Goodwill | — | — | 8,747 | — | 8,747 | ||||||||||||||
Intangible assets, net | — | — | 2,223 | — | 2,223 | ||||||||||||||
Fixed assets, net | — | — | 765 | — | 765 | ||||||||||||||
Deferred tax assets | 134 | 726 | 168 | (706 | ) | 322 | |||||||||||||
Intercompany receivables | 366 | 261 | 8,711 | (9,338 | ) | — | |||||||||||||
Prepaid Pension | — | 5 | 853 | — | 858 | ||||||||||||||
Other non-current assets | 2 | 119 | 433 | — | 554 | ||||||||||||||
Investment in subsidiary | 10,107 | 17,137 | (350 | ) | (26,894 | ) | — | ||||||||||||
TOTAL ASSETS | $ | 10,714 | $ | 21,929 | $ | 44,582 | $ | (50,610 | ) | $ | 26,615 | ||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||
Accounts payable and accrued liabilities | $ | 585 | $ | 44 | $ | 3,034 | $ | (1,862 | ) | $ | 1,801 | ||||||||
Short-term debt and current portion of long-term debt | 279 | 50 | 7 | — | 336 | ||||||||||||||
Fiduciary Liabilities | — | — | 9,485 | — | 9,485 | ||||||||||||||
Intercompany payables | 142 | 10,399 | 1,269 | (11,810 | ) | — | |||||||||||||
Other current liabilities | — | 63 | 810 | — | 873 | ||||||||||||||
Total Current Liabilities | 1,006 | 10,556 | 14,605 | (13,672 | ) | 12,495 | |||||||||||||
Long-term debt | 4,177 | 1,413 | 279 | — | 5,869 | ||||||||||||||
Deferred tax liabilities | — | — | 759 | (658 | ) | 101 | |||||||||||||
Pension, other post-retirement and other post-employment liabilities | — | 1,356 | 418 | — | 1,774 | ||||||||||||||
Intercompany payables | — | 8,877 | 461 | (9,338 | ) | — | |||||||||||||
Other non-current liabilities | 8 | 77 | 759 | — | 844 | ||||||||||||||
TOTAL LIABILITIES | 5,191 | 22,279 | 17,281 | (23,668 | ) | 21,083 | |||||||||||||
TOTAL AON SHAREHOLDERS’ EQUITY | 5,523 | (350 | ) | 27,244 | (26,942 | ) | 5,475 | ||||||||||||
Noncontrolling interests | — | — | 57 | — | 57 | ||||||||||||||
TOTAL EQUITY | 5,523 | (350 | ) | 27,301 | (26,942 | ) | 5,532 | ||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 10,714 | $ | 21,929 | $ | 44,582 | $ | (50,610 | ) | $ | 26,615 |
As of December 31, 2015 | |||||||||||||||||||
(millions) | Aon plc | Aon Corporation | Other Non-Guarantor Subsidiaries | Consolidating Adjustments | Consolidated | ||||||||||||||
ASSETS | |||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 2,083 | $ | 1,242 | $ | (2,941 | ) | $ | 384 | ||||||||
Short-term investments | — | 209 | 147 | — | 356 | ||||||||||||||
Receivables, net | 1 | — | 2,563 | — | 2,564 | ||||||||||||||
Fiduciary assets | — | — | 9,932 | — | 9,932 | ||||||||||||||
Intercompany receivables | 432 | 1,950 | 7,957 | (10,339 | ) | — | |||||||||||||
Other current assets | — | 19 | 310 | — | 329 | ||||||||||||||
Total Current Assets | 433 | 4,261 | 22,151 | (13,280 | ) | 13,565 | |||||||||||||
Goodwill | — | — | 8,448 | — | 8,448 | ||||||||||||||
Intangible assets, net | — | — | 2,180 | — | 2,180 | ||||||||||||||
Fixed assets, net | — | — | 765 | — | 765 | ||||||||||||||
Deferred tax assets | 154 | 756 | 207 | (817 | ) | 300 | |||||||||||||
Intercompany receivables | 375 | 526 | 8,633 | (9,534 | ) | — | |||||||||||||
Prepaid Pension | — | 6 | 1,027 | — | 1,033 | ||||||||||||||
Other non-current assets | — | 119 | 557 | (84 | ) | 592 | |||||||||||||
Investment in subsidiary | 11,700 | 16,042 | (123 | ) | (27,619 | ) | — | ||||||||||||
TOTAL ASSETS | $ | 12,662 | $ | 21,710 | $ | 43,845 | $ | (51,334 | ) | $ | 26,883 | ||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||
Accounts payable and accrued liabilities | $ | 2,988 | $ | 45 | $ | 1,680 | $ | (2,941 | ) | $ | 1,772 | ||||||||
Short-term debt and current portion of long-term debt | — | 550 | 12 | — | 562 | ||||||||||||||
Fiduciary Liabilities | — | — | 9,932 | — | 9,932 | ||||||||||||||
Intercompany payables | 167 | 9,518 | 654 | (10,339 | ) | — | |||||||||||||
Other current liabilities | 47 | 56 | 716 | — | 819 | ||||||||||||||
Total Current Liabilities | 3,202 | 10,169 | 12,994 | (13,280 | ) | 13,085 | |||||||||||||
Long-term debt | 3,451 | 1,412 | 275 | — | 5,138 | ||||||||||||||
Deferred tax liabilities | — | — | 855 | (818 | ) | 37 | |||||||||||||
Pension, other post-retirement and other post-employment liabilities | — | 1,313 | 482 | — | 1,795 | ||||||||||||||
Intercompany payables | — | 8,799 | 735 | (9,534 | ) | — | |||||||||||||
Other non-current liabilities | 7 | 140 | 705 | (83 | ) | 769 | |||||||||||||
TOTAL LIABILITIES | 6,660 | 21,833 | 16,046 | (23,715 | ) | 20,824 | |||||||||||||
TOTAL AON SHAREHOLDERS’ EQUITY | 6,002 | (123 | ) | 27,742 | (27,619 | ) | 6,002 | ||||||||||||
Noncontrolling interests | — | — | 57 | — | 57 | ||||||||||||||
TOTAL EQUITY | 6,002 | (123 | ) | 27,799 | (27,619 | ) | 6,059 | ||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 12,662 | $ | 21,710 | $ | 43,845 | $ | (51,334 | ) | $ | 26,883 |
Year Ended December 31, 2016 | |||||||||||||||||||
(millions) | Aon plc | Aon Corporation | Other Non-Guarantor Subsidiaries | Consolidating Adjustments | Consolidated | ||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||||||
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES | $ | 2,705 | $ | (536 | ) | $ | 3,265 | $ | (3,108 | ) | $ | 2,326 | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||||||||
Proceeds from investments | — | 316 | 15 | (288 | ) | 43 | |||||||||||||
Payments for investments | — | (35 | ) | (29 | ) | — | (64 | ) | |||||||||||
Net (purchases) sales of short-term investments - non-fiduciary | — | 70 | (9 | ) | — | 61 | |||||||||||||
Acquisition of businesses, net of cash acquired | — | (335 | ) | (608 | ) | 64 | (879 | ) | |||||||||||
Proceeds from sale of businesses | — | — | 171 | (64 | ) | 107 | |||||||||||||
Capital expenditures | — | — | (222 | ) | — | (222 | ) | ||||||||||||
CASH USED FOR INVESTING ACTIVITIES | — | 16 | (682 | ) | (288 | ) | (954 | ) | |||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||||||
Share repurchase | (1,257 | ) | — | — | — | (1,257 | ) | ||||||||||||
Advances from (to) affiliates and other (1) | (2,008 | ) | 570 | (3,037 | ) | 4,475 | — | ||||||||||||
Issuance of shares for employee benefit plans | (129 | ) | — | — | — | (129 | ) | ||||||||||||
Issuance of debt | 1,879 | 1,588 | — | — | 3,467 | ||||||||||||||
Repayment of debt | (845 | ) | (2,088 | ) | (12 | ) | — | (2,945 | ) | ||||||||||
Cash dividends to shareholders | (345 | ) | — | — | — | (345 | ) | ||||||||||||
Noncontrolling interests and other financing activities | — | (77 | ) | — | (77 | ) | |||||||||||||
CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES | (2,705 | ) | 70 | (3,126 | ) | 4,475 | (1,286 | ) | |||||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | — | — | (39 | ) | — | (39 | ) | ||||||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | — | (450 | ) | (582 | ) | 1,079 | 47 | ||||||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | — | 2,083 | 1,242 | (2,941 | ) | 384 | |||||||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | — | $ | 1,633 | $ | 660 | $ | (1,862 | ) | $ | 431 |
Year Ended December 31, 2015 | |||||||||||||||||||
(millions) | Aon plc | Aon Corporation | Other Non-Guarantor Subsidiaries | Consolidating Adjustments | Consolidated | ||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||||||
CASH PROVIDED BY OPERATING ACTIVITIES | $ | 695 | $ | 464 | $ | 2,523 | $ | (1,673 | ) | $ | 2,009 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||||||||
Proceeds from investments | — | 27 | 193 | — | 220 | ||||||||||||||
Payments for investments | (13 | ) | (47 | ) | (219 | ) | 13 | (266 | ) | ||||||||||
Net purchases of short-term investments - non-fiduciary | — | (42 | ) | 51 | — | 9 | |||||||||||||
Acquisition of businesses, net of cash acquired | — | — | (16 | ) | — | (16 | ) | ||||||||||||
Proceeds from sale of businesses | — | — | 205 | — | 205 | ||||||||||||||
Capital expenditures | — | — | (290 | ) | — | (290 | ) | ||||||||||||
CASH USED FOR INVESTING ACTIVITIES | (13 | ) | (62 | ) | (76 | ) | 13 | (138 | ) | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||||||
Share repurchase | (1,550 | ) | — | — | — | (1,550 | ) | ||||||||||||
Advances from (to) affiliates and other (1) | 232 | (326 | ) | (2,339 | ) | 2,433 | — | ||||||||||||
Issuance of shares for employee benefit plans | (29 | ) | — | (1 | ) | — | (30 | ) | |||||||||||
Issuance of debt | 1,318 | 4,026 | 7 | — | 5,351 | ||||||||||||||
Repayment of debt | (330 | ) | (4,746 | ) | (22 | ) | — | (5,098 | ) | ||||||||||
Cash dividends to shareholders | (323 | ) | — | — | — | (323 | ) | ||||||||||||
Noncontrolling interests and other financing activities | — | — | (39 | ) | — | (39 | ) | ||||||||||||
CASH USED FOR FINANCING ACTIVITIES | (682 | ) | (1,046 | ) | (2,394 | ) | 2,433 | (1,689 | ) | ||||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | — | — | (172 | ) | — | (172 | ) | ||||||||||||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | — | (644 | ) | (119 | ) | 773 | 10 | ||||||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | — | 2,727 | 1,361 | (3,714 | ) | 374 | |||||||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | — | $ | 2,083 | $ | 1,242 | $ | (2,941 | ) | $ | 384 |
Year Ended December 31, 2014 | |||||||||||||||||||
(millions) | Aon plc | Aon Corporation | Other Non-Guarantor Subsidiaries | Consolidating Adjustments | Consolidated | ||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||||||
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES | $ | 769 | $ | (927 | ) | $ | 1,970 | $ | — | $ | 1,812 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||||||||
Proceeds from investments | — | 39 | 13 | — | 52 | ||||||||||||||
Payments for investments | — | (20 | ) | — | — | (20 | ) | ||||||||||||
Net sales of short-term investments - non-fiduciary | — | (3 | ) | 113 | — | 110 | |||||||||||||
Acquisition of businesses, net of cash acquired | — | — | (479 | ) | — | (479 | ) | ||||||||||||
Proceeds from sale of businesses | — | — | 48 | — | 48 | ||||||||||||||
Capital expenditures | — | — | (256 | ) | — | (256 | ) | ||||||||||||
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES | — | 16 | (561 | ) | — | (545 | ) | ||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||||||
Share repurchase | (2,250 | ) | — | — | — | (2,250 | ) | ||||||||||||
Advances from (to) affiliates | 19 | 3,215 | (536 | ) | (2,698 | ) | — | ||||||||||||
Issuance of shares for employee benefit plans | (105 | ) | — | — | — | (105 | ) | ||||||||||||
Issuance of debt | 2,908 | 2,326 | 5 | — | 5,239 | ||||||||||||||
Repayment of debt | (1,068 | ) | (2,150 | ) | (700 | ) | — | (3,918 | ) | ||||||||||
Cash dividends to shareholders | (273 | ) | — | — | — | (273 | ) | ||||||||||||
Noncontrolling interests and other financing activities | — | — | 4 | — | 4 | ||||||||||||||
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES | (769 | ) | 3,391 | (1,227 | ) | (2,698 | ) | (1,303 | ) | ||||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | — | — | (67 | ) | — | (67 | ) | ||||||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | — | 2,480 | 115 | (2,698 | ) | (103 | ) | ||||||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | — | 247 | 1,246 | (1,016 | ) | 477 | |||||||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | — | $ | 2,727 | $ | 1,361 | $ | (3,714 | ) | $ | 374 |
(As reported) | 1Q | 2Q | 3Q | 4Q | 2016 | ||||||||||||||
INCOME STATEMENT DATA | |||||||||||||||||||
Commissions, fees and other revenue | $ | 2,787 | $ | 2,761 | $ | 2,740 | $ | 3,317 | $ | 11,605 | |||||||||
Fiduciary investment income | 5 | 5 | 6 | 6 | 22 | ||||||||||||||
Total revenue | 2,792 | 2,766 | 2,746 | 3,323 | 11,627 | ||||||||||||||
Operating income | 450 | 405 | 422 | 629 | 1,906 | ||||||||||||||
Net income | 327 | 280 | 314 | 509 | 1,430 | ||||||||||||||
Less: Net income attributable to noncontrolling interests | 12 | 8 | 7 | 7 | 34 | ||||||||||||||
Net income attributable to Aon shareholders | $ | 315 | $ | 272 | $ | 307 | $ | 502 | $ | 1,396 | |||||||||
PER SHARE DATA | |||||||||||||||||||
Basic net income per share attributable to Aon shareholders | $ | 1.16 | $ | 1.01 | $ | 1.15 | $ | 1.89 | $ | 5.21 | |||||||||
Diluted net income per share attributable to Aon shareholders | $ | 1.15 | $ | 1.01 | $ | 1.14 | $ | 1.87 | $ | 5.16 |
(Effect of change) | 1Q | 2Q | 3Q | 4Q | 2016 | ||||||||||||||
INCOME STATEMENT DATA | |||||||||||||||||||
Commissions, fees and other revenue | $ | 13 | $ | 34 | $ | 14 | $ | (61 | ) | $ | — | ||||||||
Fiduciary investment income | — | — | — | — | — | ||||||||||||||
Total revenue | 13 | 34 | 14 | (61 | ) | — | |||||||||||||
Operating income | 13 | 34 | 14 | (61 | ) | — | |||||||||||||
Net income | 10 | 28 | 12 | (50 | ) | — | |||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | — | — | — | ||||||||||||||
Net income attributable to Aon shareholders | $ | 10 | $ | 28 | $ | 12 | $ | (50 | ) | $ | — | ||||||||
PER SHARE DATA | |||||||||||||||||||
Basic net income per share attributable to Aon shareholders | $ | 0.04 | $ | 0.11 | $ | 0.04 | $ | (0.19 | ) | $ | — | ||||||||
Diluted net income per share attributable to Aon shareholders | $ | 0.04 | $ | 0.10 | $ | 0.04 | $ | (0.19 | ) | $ | — |
(As revised) | 1Q | 2Q | 3Q | 4Q | 2016 | ||||||||||||||
INCOME STATEMENT DATA | |||||||||||||||||||
Commissions, fees and other revenue | $ | 2,800 | $ | 2,795 | $ | 2,754 | $ | 3,256 | $ | 11,605 | |||||||||
Fiduciary investment income | 5 | 5 | 6 | 6 | 22 | ||||||||||||||
Total revenue | 2,805 | 2,800 | 2,760 | 3,262 | 11,627 | ||||||||||||||
Operating income | 463 | 439 | 436 | 568 | 1,906 | ||||||||||||||
Net income | 337 | 308 | 326 | 459 | 1,430 | ||||||||||||||
Less: Net income attributable to noncontrolling interests | 12 | 8 | 7 | 7 | 34 | ||||||||||||||
Net income attributable to Aon shareholders | $ | 325 | $ | 300 | $ | 319 | $ | 452 | $ | 1,396 | |||||||||
PER SHARE DATA | |||||||||||||||||||
Basic net income per share attributable to Aon shareholders | $ | 1.20 | $ | 1.12 | $ | 1.19 | $ | 1.70 | $ | 5.21 | |||||||||
Diluted net income per share attributable to Aon shareholders | $ | 1.19 | $ | 1.11 | $ | 1.18 | $ | 1.68 | $ | 5.16 |
(As reported) | 1Q | 2Q | 3Q | 4Q | 2015 | ||||||||||||||
INCOME STATEMENT DATA | |||||||||||||||||||
Commissions, fees and other revenue | $ | 2,842 | $ | 2,800 | $ | 2,736 | $ | 3,283 | $ | 11,661 | |||||||||
Fiduciary investment income | 5 | 5 | 6 | 5 | 21 | ||||||||||||||
Total revenue | 2,847 | 2,805 | 2,742 | 3,288 | 11,682 | ||||||||||||||
Operating income | 441 | 277 | 413 | 717 | 1,848 | ||||||||||||||
Net income | 341 | 188 | 303 | 590 | 1,422 | ||||||||||||||
Less: Net income attributable to noncontrolling interests | 13 | 10 | 8 | 6 | 37 | ||||||||||||||
Net income attributable to Aon shareholders | $ | 328 | $ | 178 | $ | 295 | $ | 584 | $ | 1,385 | |||||||||
PER SHARE DATA | |||||||||||||||||||
Basic net income per share attributable to Aon shareholders | $ | 1.15 | $ | 0.63 | $ | 1.05 | $ | 2.12 | $ | 4.93 | |||||||||
Diluted net income per share attributable to Aon shareholders | $ | 1.14 | $ | 0.62 | $ | 1.04 | $ | 2.09 | $ | 4.88 |
(Effect of change) | 1Q | 2Q | 3Q | 4Q | 2015 | ||||||||||||||
INCOME STATEMENT DATA | |||||||||||||||||||
Commissions, fees and other revenue | $ | 20 | $ | 31 | $ | 10 | $ | (61 | ) | $ | — | ||||||||
Fiduciary investment income | — | — | — | — | — | ||||||||||||||
Total revenue | 20 | 31 | 10 | (61 | ) | — | |||||||||||||
Operating income | 20 | 31 | 10 | (61 | ) | — | |||||||||||||
Net income | 16 | 26 | 8 | (50 | ) | — | |||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | — | — | — | ||||||||||||||
Net income attributable to Aon shareholders | $ | 16 | $ | 26 | $ | 8 | $ | (50 | ) | $ | — | ||||||||
PER SHARE DATA | |||||||||||||||||||
Basic net income per share attributable to Aon shareholders | $ | 0.06 | $ | 0.09 | $ | 0.03 | $ | (0.18 | ) | $ | — | ||||||||
Diluted net income per share attributable to Aon shareholders | $ | 0.06 | $ | 0.09 | $ | 0.03 | $ | (0.18 | ) | $ | — |
(As revised) | 1Q | 2Q | 3Q | 4Q | 2015 | ||||||||||||||
INCOME STATEMENT DATA | |||||||||||||||||||
Commissions, fees and other revenue | $ | 2,862 | $ | 2,831 | $ | 2,746 | $ | 3,222 | $ | 11,661 | |||||||||
Fiduciary investment income | 5 | 5 | 6 | 5 | 21 | ||||||||||||||
Total revenue | 2,867 | 2,836 | 2,752 | 3,227 | 11,682 | ||||||||||||||
Operating income | 461 | 308 | 423 | 656 | 1,848 | ||||||||||||||
Net income | 357 | 214 | 311 | 540 | 1,422 | ||||||||||||||
Less: Net income attributable to noncontrolling interests | 13 | 10 | 8 | 6 | 37 | ||||||||||||||
Net income attributable to Aon shareholders | $ | 344 | $ | 204 | $ | 303 | $ | 534 | $ | 1,385 | |||||||||
PER SHARE DATA | |||||||||||||||||||
Basic net income per share attributable to Aon shareholders | $ | 1.21 | $ | 0.72 | $ | 1.08 | $ | 1.94 | $ | 4.93 | |||||||||
Diluted net income per share attributable to Aon shareholders | $ | 1.20 | $ | 0.71 | $ | 1.07 | $ | 1.91 | $ | 4.88 |
(a) | (1) and (2). The following documents have been included in Part II, Item 8. | |
Report of Ernst & Young LLP, Independent Registered Public Accounting Firm, on Financial Statements | ||
Consolidated Statements of Financial Position — As of December 31, 2016 and 2015 | ||
Consolidated Statements of Income — Years Ended December 31, 2016, 2015 and 2014 | ||
Consolidated Statements of Comprehensive Income — Years Ended December 31, 2016, 2015 and 2014 | ||
Consolidated Statements of Shareholders’ Equity — Years Ended December 31, 2016, 2015 and 2014 | ||
Consolidated Statements of Cash Flows — Years Ended December 31, 2016, 2015 and 2014 | ||
Notes to Consolidated Financial Statements |
Report of Ernst & Young LLP, Independent Registered Public Accounting Firm, on Internal Control over Financial Reporting |
(a)(3). List of Exhibits (numbered in accordance with Item 601 of Regulation S-K) | |||
Plan of Acquisition, Reorganization, Arrangement, Liquidation or Succession. | |||
2.1* | Agreement and Plan of Merger and Reorganization by and among Aon Corporation and Market Mergeco Inc. dated January 12, 2012 — incorporated by reference to Annex A of the Registration Statement on Form S-4/A (File No. 333-178991) filed by Aon Global Limited on February 6, 2012. | ||
Articles of Association. | |||
3.1* | Articles of Association of Aon plc — incorporated by reference to Exhibit 3.1 to Aon’s Current Report on Form 8-K filed on April 2, 2012. | ||
Instruments Defining the Rights of Security Holders, Including Indentures. | |||
4.1* | Amended and Restated Indenture, dated as of April 2, 2012, among Aon Corporation, Aon plc and The Bank of New York Mellon Trust Company, N.A. (amending and restating the Indenture, dated as of January 13, 1997, as supplemented by the First Supplemental Indenture, dated as of January 13, 1997) — incorporated by reference to Exhibit 4.3 to Aon’s Current Report on Form 8-K filed on April 2, 2012. | ||
4.2* | Capital Securities Guarantee Agreement dated as of January 13, 1997 between Aon and The Bank of New York, as Guarantee Trustee — incorporated by reference to Exhibit 4.8 to Aon’s Registration Statement on Form S-4 (File No. 333-21237) filed on February 6, 1997. | ||
4.3* | Capital Securities Exchange and Registration Rights Agreement dated as of January 13, 1997 among Aon, Aon Capital A, Morgan Stanley & Co. Incorporated and Goldman, Sachs & Co. — incorporated by reference to Exhibit 4.10 to Aon’s Registration Statement on Form S-4 (File No. 333-21237) filed on February 6, 1997. | ||
4.4* | Debenture Exchange and Registration Rights Agreement dated as of January 13, 1997 among Aon, Aon Capital A, Morgan Stanley & Co. Incorporated and Goldman, Sachs & Co. — incorporated by reference to Exhibit 4.11 to Aon’s Registration Statement on Form S-4 (File No. 333-21237) filed on February 6, 1997. | ||
4.5* | Guarantee Exchange and Registration Rights Agreement dated as of January 13, 1997 among Aon, Aon Capital A, Morgan Stanley & Co. Incorporated and Goldman, Sachs & Co. — incorporated by reference to Exhibit 4.12 to Aon’s Registration Statement on Form S-4 (File No. 333-21237) filed on February 6, 1997. | ||
4.6* | Amended and Restated Indenture, dated as of April 2, 2012, among Aon Corporation, Aon plc and The Bank of New York Mellon Trust Company, N.A., as trustee (amending and restating the Indenture, dated as of December 16, 2002, between Aon Corporation and The Bank of New York Mellon Trust Company, N.A.) — incorporated by reference to Exhibit 4.2 to Aon’s Current Report on Form 8-K filed on April 2, 2012. | ||
4.7* | Indenture dated as of April 12, 2006 among Aon Finance N.S.1, ULC, Aon and Computershare Trust Company of Canada, as Trustee — incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K filed on April 18, 2006. | ||
4.8* | Amended and Restated Indenture, dated as of April 2, 2012, among Aon Corporation, Aon plc and The Bank of New York Mellon Trust Company, N.A., as trustee (amending and restating the Indenture, dated as of September 10, 2010, between Aon Corporation and The Bank of New York Mellon Trust Company, N.A.) — incorporated by reference to Exhibit 4.2 to Aon’s Current Report on Form 8-K filed on April 2, 2012. | ||
4.9* | Form of 5.00% Senior Note due 2020 — incorporated by reference to Exhibit 4.3 to Aon’s Current Report on Form 8-K filed on September 10, 2010. | ||
4.10* | Form of 6.25% Senior Note due 2040 — incorporated by reference to Exhibit 4.4 to Aon’s Current Report on Form 8-K filed on September 10, 2010. | ||
4.11* | Indenture dated as of March 8, 2011, among Aon Finance N.S. 1, ULC, Aon Corporation and Computershare Trust Company of Canada. — incorporated by reference to Exhibit 4.1 to Aon’s Current Report on Form 8-K filed on March 8, 2011. | ||
4.12* | First Supplemental Indenture, dated as of April 2, 2012, among Aon Finance N.S. 1, ULC, Aon Corporation, as guarantor, Aon plc, as guarantor, and Computershare Trust Company of Canada, as trustee (supplementing the Indenture dated as of March 8, 2011 among Aon Finance N.S.1, ULC, Aon Corporation, as guarantor, and Computershare Trust Company of Canada, as trustee) — incorporated by reference to Exhibit 4.2 to Aon’s Current Report on Form 8-K filed on April 2, 2012. | ||
4.13* | Indenture, dated as of December 12, 2012 by and among Aon plc, Aon Corporation, The Bank of New York Mellon Trust Company, N.A. — incorporated by reference to Exhibit 4.1 to Aon’s Current Report on Form 8-K filed on December 13, 2012. | ||
4.14* | Form of 4.250% Senior Note Due 2042 - incorporated by reference to Exhibit 4.6 to Aon’s Registration Statement on Form S-4 (File No. 333-187637) filed on March 29, 2013. | ||
4.15* | Indenture, dated as of May 24, 2013, among Aon, Aon Corporation and The Bank of New York Mellon Trust Company, National Association, as trustee (including the Guarantee) — incorporated by reference to Exhibit 4.1 to Aon’s Current Report on Form 8-K filed on May 24, 2013. | ||
4.16* | Form of 4.45% Senior Note due 2043 — incorporated by reference to Exhibit 4.2 to Aon’s Current Report on Form 8-K filed on May 24, 2013. | ||
4.17* | Form of 4.00% Senior Note due 2023 — incorporated by reference to Exhibit 4.2 to Aon’s Current Report on Form 8-K filed on November 26, 2013. | ||
4.18* | Form of 2.875% Senior Note due 2016 - incorporated by reference to Exhibit 4.2 to Aon’s Current Report on Form 8-K filed on May 13, 2014. | ||
4.19* | Form of 3.500% Senior Note due 2024 - incorporated by reference to Exhibit 4.2 to Aon’s Current Report on Form 8-K filed on May 27, 2014. | ||
4.20* | Form of 4.600% Senior Note due 2044 - incorporated by reference to Exhibit 4.3 to Aon’s Current Report on Form 8-K filed on May 27, 2014. | ||
4.21* | Amended and Restated Indenture, dated as of May 20, 2015, among Aon plc, Aon Corporation and The Bank of New York Mellon Trust Company, National Association, as trustee (including the Guarantee) - incorporated by reference to Exhibit 4.1 to Aon’s Current Report on Form 8-K filed on May 20, 2015. | ||
4.22* | Form of 4.750% Senior Note due 2045 - incorporated by reference to Exhibit 4.1 to Aon’s Current Report on Form 8-K filed on May 20, 2015. | ||
4.23* | Indenture, dated as of November 13, 2015, among Aon plc, Aon Corporation and The Bank of New York Mellon Trust Company, N.A., as trustee (including the guarantee) - incorporated by reference to Exhibit 4.1 to Aon’s Current Report on Form 8-K filed on November 13, 2015. | ||
4.24* | Form of 2.800% Senior Note due 2021 - incorporated by reference to Exhibit 4.1 to Aon’s Current Report on Form 8-K filed on November 13, 2015. | ||
4.25* | Form of 3.875% Senior Note due 2025 - incorporated by reference to Exhibit 2.1 to Aon’s Current Report on Form 8-K filed on February 29, 2016. | ||
Material Contracts. | |||
10.1* | Amended and Restated Agreement among the Attorney General of the State of New York, the Superintendent of Insurance of the State of New York, the Attorney General of the State of Connecticut, the Illinois Attorney General, the Director of the Illinois Department of Insurance, and Aon Corporation and its subsidiaries and affiliates effective as of February 11, 2010 — incorporated by reference to Exhibit 10.1 to Aon’s Current Report on Form 8-K filed on February 16, 2010. | ||
10.2* | $400,000,000 Five-Year Credit Agreement dated as of March 20, 2012 among Aon Corporation, Citibank, N.A. as Administrative Agent, JP Morgan Chase Bank, N.A. and Bank of America, N.A., as Syndication Agents, The Royal Bank of Scotland Plc and Wells Fargo Bank, National Association, as documentation agents and Citigroup Global Markets, Inc., J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner and Smith Incorporated, as joint lead arrangers and joint book managers and the lenders party thereto — incorporated by reference to Exhibit 10.1 to Aon’s Current Report on Form 8-K filed on March 21, 2012. | ||
10.3* | Joinder Agreement executed by Aon plc as of April 2, 2012 (modifying the $400,000,000 Five-Year Credit Agreement, dated as of March 20, 2012, among Aon Corporation, as borrower, Citibank, N.A., as administrative agent and the other agents and lenders party thereto) — incorporated by reference to Exhibit 10.1 to Aon’s Current Report on Form 8-K filed on April 2, 2012. | ||
10.4* | European Facility Amendment and Restatement Agreement, dated as of March 30, 2012, among Aon Corporation, Aon plc, the subsidiaries of Aon Corporation party thereto as borrowers, Citibank International plc, as agent, and the other agents and lenders party thereto, amending and restating the European Facility Agreement dated as of October 15, 2010 and amended on July 18, 2011 — incorporated by reference to Exhibit 10.3 to Aon’s Current Report on Form 8-K filed on April 2, 2012. | ||
10.5* | $900,000,000 Five-Year Credit Agreement among Aon plc, Aon Corporation and Aon UK Limited with Citibank, N.A., as administrative agent, the lenders party thereto, Bank of America, N.A. and Morgan Stanley Senior Funding, Inc., as syndication agents, and Citigroup Global Markets, Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and Morgan Stanley Senior Funding, Inc., as joint lead arrangers and joint book managers - incorporated by reference to Exhibit 10.1 to Aon’s Current Report on Form 8-K filed on February 4, 2015. | ||
10.6* | Form of notice of extension of $900,000,000 Five-Year Credit Agreement among Aon plc, Aon Corporation and Aon UK Limited with Citibank, N.A., as administrative agent, the lenders party thereto, Bank of America, N.A. and Morgan Stanley Senior Funding, Inc., as syndication agents, and Citigroup Global Markets, Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and Morgan Stanley Senior Funding, Inc., as joint lead arrangers and joint book managers - incorporated by reference to Exhibit 10.1 to Aon’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2016. | ||
10.7* | Purchase Agreement, dated as of February 9, 2017, by and between Aon plc and Tempo Acquisition, LLC- incorporated by reference to Aon’s Current Report on Form 8-K filed February 10, 2017. | ||
10.8* | Deed of Assumption of Aon plc dated April 2, 2012 - incorporated by reference to Exhibit 10.7 to Aon's Current Report on Form 8-K filed on April 2, 2012. | ||
10.9*# | Aon Corporation Outside Director Corporate Bequest Plan (as amended and restated effective January 1, 2010) — incorporated by reference to Exhibit 10.1 to Aon’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2010. | ||
10.10*# | Aon Stock Incentive Plan, as amended and restated — incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K filed on May 24, 2006. | ||
10.11*# | First Amendment to the Amended and Restated Aon Stock Incentive Plan — incorporated by reference to Exhibit 10(au) to Aon’s Annual Report on Form 10-K for the year ended December 31, 2006. | ||
10.12*# | Second Amendment to the Amended and Restated Aon Stock Incentive Plan, dated April 2, 2012 — incorporated by reference to Exhibit 10.10 to Aon’s Current Report on Form 8-K filed on April 2, 2012. | ||
10.13*# | Form of Stock Option Agreement — incorporated by reference to Exhibit 99.D(7) to Aon’s Schedule TO (File Number 005-32053) filed on August 15, 2007. | ||
10.14*# | Aon Stock Award Plan (as amended and restated through February 2000) — incorporated by reference to Exhibit 10(a) to Aon’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2000. | ||
10.15*# | First Amendment to the Aon Stock Award Plan (as amended and restated through 2000) — incorporated by reference to Exhibit 10(as) to Aon’s Annual Report on Form 10-K for the year ended December 31, 2006. | ||
10.16*# | Aon Stock Option Plan as amended and restated through 1997 — incorporated by reference to Exhibit 10(a) to Aon’s Quarterly Report on Form 10-Q for the quarter ended March 31, 1997. | ||
10.17*# | First Amendment to the Aon Stock Option Plan as amended and restated through 1997 — incorporated by reference to Exhibit 10(a) to Aon’s Quarterly Report on Form 10-Q for the quarter ended March 31, 1999. | ||
10.18*# | Second Amendment to the Aon Stock Option Plan as amended and restated through 1997 — incorporated by reference to Exhibit 99.D(3) to Aon’s Schedule TO (File Number 005-32053) filed on August 15, 2007. | ||
10.19*# | Third Amendment to the Aon Stock Option Plan as amended and restated through 1997 — incorporated by reference to Exhibit 10(at) to Aon’s Annual Report on Form 10-K for the year ended December 31, 2006. | ||
10.20*# | Aon plc 2011 Incentive Plan, as amended and restated effective June 24, 2014 - incorporated by reference to Exhibit 10.1 to Aon's Quarterly Report on Form 10-Q for the quarter ended June 30, 2014. | ||
10.21*# | First Amendment to the Aon plc 2011 Incentive Plan, as amended and restated, effective as of March 31, 2016 - incorporated by reference to Exhibit 10.9 to Aon's Quarterly Report on Form 10-Q for the quarter ended March 31, 2016. | ||
10.22*# | Executive Committee Incentive Compensation Plan - incorporated by reference to Exhibit 10.3 to Aon's Quarterly Report on Form 10-Q for the quarter ended March 31, 2016. | ||
10.23*# | Aon plc Leadership Performance Program for 2015-2017 - incorporated by reference to Exhibit 10.6 to Aon's Quarterly Report on Form 10-Q for the quarter ended March 31, 2015. | ||
10.24*# | Aon plc Leadership Performance Program - incorporated by reference to Exhibit 10.2 to Aon's Quarterly Report on Form 10-Q for the quarter ended March 31, 2016. | ||
10.25*# | Aon plc Amended and Restated Executive Committee Combined Severance and Change in Control Plan, effective September 12, 2016 - incorporated by reference to Exhibit 10.1 to Aon’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2016. | ||
10.26*# | Form of Indemnification Agreement for Directors and Officers of Aon Corporation - incorporated by reference to Exhibit 10.1 to Aon's Current Report on Form 8-K filed on February 5, 2009. | ||
10.27*# | Form of Deed of Indemnity for Directors of Aon plc — incorporated by reference to Exhibit 10.4 to Aon’s Current Report on Form 8-K filed on April 2, 2012. | ||
10.28*# | Form of Deed of Indemnity for Gregory C. Case — incorporated by reference to Exhibit 10.5 to Aon’s Current Report on Form 8-K filed on April 2, 2012. | ||
10.29*# | Form of Deed of Indemnity for Executive Officers of Aon plc — incorporated by reference to Exhibit 10.6 to Aon’s Current Report on Form 8-K filed on April 2, 2012. | ||
10.30*# | Form of Service as a Non-Executive Director Agreement - incorporated by reference to Exhibit 10.2 to Aon’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2016. | ||
10.31*# | Employment Agreement dated April 4, 2005 between Aon and Gregory C. Case - incorporated by reference to Exhibit 10.1 to Aon's Quarterly Report on Form 10-Q for the quarter ended March 31, 2005. | ||
10.32*# | Amended and Restated Employment Agreement dated as of November 13, 2009 between Aon and Gregory C. Case - incorporated by reference to Exhibit 10.1 to Aon's Current Report on Form 8-K filed on November 17, 2009. | ||
10.33*# | Amended and Restated Employment Agreement, dated as of January 16, 2015, by and between Aon plc, Aon Corporation and Gregory C. Case - incorporated by reference to Exhibit 10.1 to Aon's Current Report on Form 8-K filed on January 23, 2015. | ||
10.34*# | Amended and Restated Change in Control Agreement dated as of November 13, 2009 between Aon and Gregory C. Case - incorporated by reference to Exhibit 10.2 to Aon's Current Report on Form 8-K filed on November 17, 2009. | ||
10.35*# | Amendment to the Amended and Restated Change of Control Agreement between Aon plc and Gregory C. Case, dated as of April 27, 2016 - incorporated by reference to Exhibit 10.11 on Aon’s Quarterly Report on Form 10-for the quarter ended March 31, 2016. | ||
10.36*# | International Assignment Letter with Gregory C. Case, effective July 1, 2016 - incorporated by reference to Exhibit 10.1 to Aon’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2016. | ||
10.37*# | Employment Agreement dated as of October 3, 2007 between Aon Corporation and Christa Davies - incorporated by reference to Exhibit 10.1 to Aon’s Current Report on Form 8-K filed on October 3, 2007. | ||
10.38*# | Amendment effective as of March 27, 2012 to Employment Agreement between Aon Corporation and Christa Davies dated as of October 3, 2007 - incorporated by reference to Exhibit 10.1 to Aon’s Current Report on Form 8-K filed on March 30, 2012. | ||
10.39*# | Amendment to Employment Agreement, dated as of February 20, 2015, by and between Aon Corporation and Christa Davies - incorporated by reference to Exhibit 10.1 to Aon’s Current Report on Form 8-K filed on February 26, 2015. | ||
10.40*# | International Assignment Letter with Christa Davies, effective July 1, 2016 - incorporated by reference to Exhibit 10.2 to Aon’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2016. | ||
10.41*# | Employment Agreement dated December 7, 2010, between Aon Corporation and Stephen P. McGill - incorporated by reference to Exhibit 10.1 to Aon's Current Report on Form 8-K filed on December 13, 2010. | ||
10.42*# | Amended and Restated Employment Agreement, dated as of July 8, 2015, by and between Aon Corporation and Stephen P. McGill - incorporated by reference to Exhibit 10.1 to Aon's Current Report on Form 8-K filed on July 14, 2015. | ||
10.43*# | International Assignment Letter with Stephen P. McGill, effective July 1, 2016 - incorporated by reference to Exhibit 10.3 to Aon’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2016. | ||
10.44*# | Employment Agreement, dated as of January 1, 2014, by and between Aon Corporation and Peter M. Lieb. - incorporated by reference to Exhibit 10.46 to Aon's Annual Report on Form 10-K for the year ended December 31, 2014. | ||
10.45*# | International Assignment Letter with Peter Lieb, effective July 1, 2016 - incorporated by reference to Exhibit 1041 to Aon’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2016. | ||
10.46*# | Employment Agreement dated as of September 30, 2010 between Aon Corporation and Kristi Savacool - incorporated by reference to Exhibit 10.8 to Aon's Quarterly Report on Form 10-Q for the quarter ended March 31, 2012. | ||
10.47*# | Amendment to Employment Agreement dated as of May 16, 2011 between Aon Corporation and Kristi Savacool - incorporated by reference to Exhibit 10.9 to Aon's Quarterly Report on Form 10-Q for the quarter ended March 31, 2012. | ||
10.48*# | Amended and Restated Employment Agreement, dated as of February 24, 2015, by and between Aon Corporation and Kristi Savacool - incorporated by reference to Exhibit 10.1 to Aon’s Current Report on Form 8-K filed on February 26, 2015. | ||
10.49# | Aon Deferred Compensation Plan, as amended and restated November 16, 2016. | ||
10.50# | First Amendment to the Aon Deferred Compensation Plan, effective December 8, 2016. | ||
10.51# | Form of Restricted Stock Unit Award Agreement. | ||
10.52# | Aon Supplemental Savings Plan, Amended and Restated Effective January 1, 2017. | ||
Statement re: Computation of Ratios. | |||
12.1. | Statement regarding Computation of Ratio of Earnings to Fixed Charges. | ||
Subsidiaries of the Registrant. | |||
21 | List of Subsidiaries of Aon. | ||
Consents of Experts and Counsel. | |||
23 | Consent of Ernst & Young LLP. | ||
Rule 13a-14(a)/15d-14(a) Certifications. | |||
31.1. | Rule 13a-14(a) Certification of Chief Executive Officer of Aon in accordance with Section 302 of the Sarbanes-Oxley Act of 2002. | ||
31.2. | Rule 13a-14(a) Certification of Chief Financial Officer of Aon in accordance with Section 302 of the Sarbanes-Oxley Act of 2002. | ||
Section 1350 Certifications. | |||
32.1. | Section 1350 Certification of Chief Executive Officer of Aon in accordance with Section 906 of the Sarbanes-Oxley Act of 2002. | ||
32.2. | Section 1350 Certification of Chief Financial Officer of Aon in accordance with Section 906 of the Sarbanes-Oxley Act of 2002. | ||
XBRL Exhibits. | |||
Interactive Data Files. The following materials are filed electronically with this Annual Report on Form 10-K: | |||
101.INS | XBRL Report Instance Document. | ||
101.SCH | XBRL Taxonomy Extension Schema Document. | ||
101.CAL | XBRL Taxonomy Calculation Linkbase Document. | ||
101.DEF | XBRL Taxonomy Definition Linkbase Document. | ||
101.PRE | XBRL Taxonomy Presentation Linkbase Document. | ||
101.LAB | XBRL Taxonomy Calculation Linkbase Document. |
Aon plc | |||||
By: | /s/ GREGORY C. CASE | ||||
Gregory C. Case, President and Chief Executive Officer | |||||
Date: | February 23, 2017 |
Signature | Title | Date | ||
/s/ GREGORY C. CASE | President, Chief Executive Officer and Director (Principal Executive Officer) | February 23, 2017 | ||
Gregory C. Case | ||||
/s/ LESTER B. KNIGHT | Non-Executive Chairman and Director | February 23, 2017 | ||
Lester B. Knight | ||||
/s/ JIN-YONG CAI | Director | February 23, 2017 | ||
Jin-Yong Cai | ||||
/s/ FULVIO CONTI | Director | February 23, 2017 | ||
Fulvio Conti | ||||
/s/ CHERYL A. FRANCIS | Director | February 23, 2017 | ||
Cheryl A. Francis | ||||
/s/ J. MICHAEL LOSH | Director | February 23, 2017 | ||
J. Michael Losh | ||||
/s/ ROBERT S. MORRISON | Director | February 23, 2017 | ||
Robert S. Morrison | ||||
/s/ RICHARD B. MYERS | Director | February 23, 2017 | ||
Richard B. Myers | ||||
/s/ RICHARD C. NOTEBAERT | Director | February 23, 2017 | ||
Richard C. Notebaert | ||||
/s/ GLORIA SANTONA | Director | February 23, 2017 | ||
Gloria Santona | ||||
/s/ CAROLYN Y. WOO | Director | February 23, 2017 | ||
Carolyn Y. Woo | ||||
/s/ CHRISTA DAVIES | Executive Vice President and Chief Financial Officer (Principal Financial Officer) | February 23, 2017 | ||
Christa Davies | ||||
/s/ LAUREL MEISSNER | Senior Vice President and Global Controller (Principal Accounting Officer) | February 23, 2017 | ||
Laurel Meissner |
(a) | Distribution Accounts. A Participant may elect up to three different distribution forms of payments and these forms may differ as to the timing of commencement of payments or distribution period, or both. A Participant may elect up to two In-Service Accounts and one Retirement Account. When the Participant elects to defer any Compensation, any Bonus, and/or any Other Earnings pursuant to Section 3, the Participant shall also make an irrevocable election as to the beginning year of distribution with respect to amounts so credited to the Distribution Accounts of the Participant and as to the form of payment. |
(i) | In-Service Account. If a Participant elects to commence distributions on a date or pursuant to a fixed schedule before separation from service with tan Employer, an In-Service Account will be established and the Participant may elect payment in annual installments not in excess of five (5) or in a lump sum, but the commencement date must be later than three (3) years after the Participant's first deferral. Payments due in any calendar year prior to separation from service will be made during the first 2½ months of such year based on the balance as of the February 28 that falls within such 2½ month period. |
(ii) | Retirement Account. If a Participant elects to commence distributions after separation from service with the Employer, or if a Participant fails to make any election, a Retirement Account will be established, and the Participant may elect payment in annual installments not in excess of ten (10) or in a lump sum. If a Participant fails to make an election as to the form of distribution, or if the Participant’s Retirement Account is first established in connection with a contribution credited to the Participant under Section 3.03 or due to the Participant’s separation from service prior to the distribution date elected with respect to a Participant’s In-Service Account, the default form of distribution shall be three (3) annual installments. Payments due on account of separation from service will be made during the first 2½ months of the year following the year of separation from service, based on the balance as of the February 28 that falls within such 2½ month period. |
(b) | Delay for Specified Employees. Notwithstanding the foregoing, if a Participant is a "specified employee" for purposes of Code Section 409A, distribution on account of separation from service (whether from the Retirement Account or the In-Service Accounts) shall be delayed until the earlier to occur of the Participant's death or the date that is six (6) months and one (1) day following the Participant's separation from service with the Employer (the "Delay Period"), provided that such date is later than the date such payment would otherwise have been made pursuant to the preceding sentence. Upon the expiration of the Delay Period, the delayed payment(s) shall be paid to the Participant, and any remaining installment payments due shall be payable in accordance with their original payment schedule. |
(c) | Subsequent Elections. A Participant may elect to change the form of distribution and/or the timing of commencement of payment of his or her In-Service Accounts provided such election (i) is made at least twelve (12) months before the date the lump sum payment or the first installment payment is otherwise scheduled to be paid, (ii) shall not take effect until at least twelve (12) months after the date on which such election is made, and (iii) except in the case of a payment upon the death or Unforeseeable Emergency (as described below in Section 5.03) of the Participant, shall defer payment of the Participant's In-Service Account for at least five (5) years from the date the lump sum payment or the first installment amount would otherwise have been paid. No subsequent deferral elections may be made with respect to a Participant’s Retirement Account. |
(a) | Initial Claims. A Participant who believes that he or she is entitled to receive benefits under this Plan, including benefits other than those initially determined by the Committee to be payable, may file a claim in writing with Committee, specifying the reasons for such claim. The Committee shall, within ninety (90) days after receipt of such written claim (unless special circumstances require an extension of time, but in no event more than one hundred and eighty (180) days after such receipt), send a written notification to the Participant as to the disposition of such claim. Such notification shall be written in a manner calculated to be understood by the claimant and in the event that such claim is denied in whole or in part, shall (i) state the specific reasons for the denial, (ii) make specific reference to the pertinent Plan provisions on which the denial is based, (iii) provide a description of any additional material or information necessary for the Participant to perfect the claim and an explanation of why such material or information is necessary, and (iv) set forth the procedure by which the Participant may appeal the denial of such claim. |
(b) | Appeals. The Participant (or his or her duly authorized representative) may request a review of the denial of any such claim or portion thereof by making application in writing to the Committee within sixty (60) days after receipt of such denial. Such Participant (or his or her duly authorized representative) may, upon written request to the Committee, review any documents pertinent to such claim, and submit in writing issues and comments in support of such claim. Within 60 days after receipt of a written appeal (unless special circumstances require an extension of time, but in no event more than one hundred and twenty (120) days after such receipt), the Committee shall notify the Participant of the final decision with respect to such claim. Such decision shall be written in a manner calculated to be understood by the claimant and shall state the specific reasons for such decision and make specific references to the pertinent Plan provision on which the decision is based. |
(c) | Finality of Decisions; Exhaustion of Remedies. To the extent permitted by law, decisions reached under the claims procedures set forth herein shall be final and binding on all parties. No legal action for benefits under the Plan shall be brought unless and until the Participant has exhausted his remedies under this Section. In any such legal action, the Participant may only present evidence and theories which the Participant presented during the claims procedure. Any claims which the Participant does not in good faith pursue through the review stage of the procedure shall be treated as having been irrevocably waived. Any suit or legal action initiated by a Participant under the Plan must be brought by the Participant no later than six (6) months following a final decision on the claim for benefits by the Committee. The six (6) month limitation on suits for benefits will apply in any forum where a Participant initiates such suit or legal action. |
1. | Grant of Restricted Stock Units. The Company grants under the Plan an award of RSUs on _______________ (the “Grant Date”). The Participant understands and agrees that the Participant has no obligation to accept this award (as a condition of employment or otherwise), and that the Participant’s decision to do so by signing this Agreement, and thereby to accept all of the terms and conditions of this Agreement, is the Participant’s knowing and voluntary choice after having had a full and fair opportunity to consult with legal counsel (at the Participant’s cost). |
2. | Vesting of Restricted Stock Units. The RSUs will vest in accordance with the schedule set forth in the Participant’s account. The Participant must access the www.netbenefits.fidelity.com website and follow the instructions in order to view the vesting schedule. Notwithstanding anything herein to the contrary, the Committee may cause the RSUs to vest prior to the date(s) set forth in the vesting schedule in order to satisfy any Tax-Related Items (as defined below) that arise prior to the date of settlement of the RSUs, subject to the limitations set forth in Section 3(d) of this Agreement. |
3. | Tax Withholding Obligations. The Participant acknowledges that, regardless of any action taken by the Company and/or the Participant’s employer (the “Employer”), the ultimate liability for all income tax, social insurance, payroll tax, payment on account or other tax-related items related to the Participant’s participation in the Plan and legally applicable to the Participant (“Tax-Related Items”), is and remains the Participant’s responsibility and may exceed the amount, if any, actually withheld by the Company or the Employer. The Participant further acknowledges that the Company and/or the Employer: (a) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the grant of RSUs, including, but not limited to, the grant, vesting or settlement of the RSUs, the issuance of Shares upon settlement of the RSUs, the subsequent sale of Shares acquired pursuant to such vesting/settlement and the receipt of any dividends and/or dividend equivalents; and (b) do not commit to and are under no obligation to structure the terms of the grant or any aspect of the RSUs to reduce or eliminate the Participant’s liability for Tax-Related Items or achieve any particular tax result. Further, if the Participant is subject to Tax-Related Items in more than one jurisdiction, the Participant acknowledges that the Company and/or the Employer (or former employer, as applicable) may be required to withhold or account for Tax-Related Items in more than one jurisdiction. |
a) | Prior to any relevant taxable or tax withholding event, as applicable, the Participant agrees to make adequate arrangements satisfactory to the Company or the Employer, to satisfy all Tax-Related Items. In this regard, the Participant authorizes the Company and/or the Employer, or their respective agents, at the Company’s discretion, to satisfy the obligations with regard to all Tax-Related Items by one or a combination of the following: |
(i) | withholding from any wages or other cash compensation paid to the Participant by the Company and/or the Employer; or |
(ii) | withholding in Shares to be issued upon vesting/settlement of the RSUs; or |
(iii) | withholding from the proceeds of the sale of Shares acquired upon vesting/settlement of the RSUs either through a voluntary sale or through a mandatory sale arranged by the Company (on the Participant’s behalf pursuant to this authorization without further consent); provided, however, that if |
b) | Depending on the withholding method, the Company and/or the Employer may withhold or account for Tax-Related Items by considering applicable minimum statutory withholding amounts or other applicable withholding rates, including maximum applicable rates, in which case, any over-withheld amount may be refunded to the Participant in cash by the Company or the Employer (with no entitlement to the equivalent Shares) or if not refunded, the Participant may seek a refund from the local tax authorities. If the obligation for Tax-Related Items is satisfied by withholding in Shares, for tax purposes, the Participant shall be deemed to have been issued the full number of Shares subject to the vested RSUs, notwithstanding that a number of Shares are held back solely for the purpose of paying the Tax-Related Items. |
c) | Finally, the Participant shall pay to the Company and/or the Employer any amount of Tax-Related Items that the Company and/or the Employer may be required to withhold as a result of the Participant’s participation in the Plan that cannot be satisfied by the means previously described. The Company may refuse to deliver the Shares or the proceeds of the sale of Shares if the Participant fails to comply with the Participant’s obligations in connection with the Tax-Related Items. |
d) | Notwithstanding anything in this Section 3 to the contrary, to avoid a prohibited distribution under Code Section 409A in the case of a Participant who is subject to U.S. federal income tax (a “U.S. Taxpayer”), if Shares underlying the RSUs will be withheld (or sold on the Participant’s behalf) to satisfy any Tax-Related Items arising prior to the date of settlement of the RSUs for any portion of the RSUs that is considered “nonqualified deferred compensation” subject to Code Section 409A (“Deferred Compensation”), then the number of Shares withheld (or sold on the Participant’s behalf) shall not exceed the number of Shares that equals the liability for the Tax-Related Items. |
4. | Nominal Value. At the time of settlement, this Award will be subject to the Participant’s appropriate undertaking to pay to the Company a nominal value of $.01 per share (as determined in the sole discretion of the Company, subject to the provisions of the Company’s articles of association and the U.K. Companies Act 2006, as amended from time to time), and such obligation may be satisfied by the Participant in cash in any manner to be established by the Company in its sole discretion, including but not limited to withholding from any wages or other cash compensation paid to the Participant by the Company and/or the Employer. |
5. | Payment of Dividend Equivalents. The Participant is eligible to receive cash payments equal to any cash dividends paid with respect to a corresponding number of Shares. These payments shall be made on a quarterly basis, in a manner prescribed by the Company, and as soon as administratively practicable after the officially recorded dividend payment date. The Participant must be employed on the dividend record date in order to be entitled to receive any dividend equivalent payment. Notwithstanding the foregoing, Participants in Ireland and Germany will receive an accumulated dividend equivalent payment in a lump sum after the entire grant of RSUs is 100% vested. |
6. | Effect of Termination of Employment. |
a) | Voluntary termination (other than Retirement). In the event that the Participant’s Termination Date occurs because of the Participant’s voluntary termination that does not qualify as Retirement, the unvested portion of the RSU will be forfeited. |
b) | Termination due to death. In the event that the Participant’s Termination Date occurs due to the Participant’s death, all unvested RSUs will be fully vested immediately and the date of such termination will be considered a vesting date for purposes of the settlement provisions of Section 8 hereof. |
c) | Termination due to disability. In the event that the Participant’s Termination Date occurs due to the Participant’s disability, all unvested RSUs will be fully vested immediately and the date of such termination will be considered a vesting date for purposes of the settlement provisions of Section 8 hereof. “Disability” for purposes of this Agreement, shall mean disability pursuant to the standards set forth in, or in circumstances where the Participant qualifies for receipt of benefits under, the long-term disability plan of the Employer. In the absence of such a |
d) | Involuntary termination (other than for Cause) or Retirement. In the event that the Participant’s Termination Date occurs as a result of the Participant’s involuntary termination by the Company or Employer (other than for Cause) or the Participant’s Retirement, the RSUs will continue to vest as if the Participant remained employed through each of the vesting dates specified in the schedule set forth in the Participant’s account. For purposes of this Agreement, “Retire” or “Retirement” means a voluntary termination of employment on or after the Participant’s 55th birthday for employees whose principal place of work is outside of the European Union (“EU”). A Participant on secondment will be subject to the vesting rule applicable to his or her home country. Participants whose principal place of work is inside the EU shall not be eligible for Retirement, and their voluntary termination at any age shall be treated in accordance with Section 6(a). The Committee shall have exclusive discretion to determine a Participant’s principal place of work for purposes of this Section 6(d). |
e) | Termination for Cause. In the event that the Participant’s Termination Date occurs because the Participant is terminated by the Company or Employer for Cause, all unvested RSUs shall be forfeited. “Cause” shall mean the Participant’s (i) performing a deliberate act of dishonesty, fraud, theft, embezzlement, or misappropriation involving the Participant’s employment with the Company, its Subsidiaries or Affiliates, or breach of the duty of loyalty to the Company, its Subsidiaries or Affiliates; (ii) performing an act of race, sex, national origin, religion, disability, or age-based discrimination which after investigation, counsel to the Company reasonably concludes will result in liability being imposed on the Company, its Subsidiaries, Affiliates and / or the Participant; (iii) material violation of Company policies and procedures including, but not limited to, the Aon Code of Business Conduct; (iv) material noncompliance with any term of this Agreement or an employment agreement; or (v) performing any criminal act resulting in a criminal felony charge brought against the Participant or a criminal conviction of the Participant (other than conviction of a minor traffic violation). |
7. | Receipt by the Participant of the Prospectus. The Participant acknowledges receipt of the Plan prospectus that contains the entire Plan and is incorporated herein by reference. The Participant represents and warrants that the Participant has read the Plan and agrees that all RSUs awarded under it shall be subject to all of the terms and conditions of the Plan. |
8. | Issuance of Shares. RSUs shall be converted to Shares as of the applicable vesting date. Shares will be issued to the Participant as soon as practicable (within 60 days) after the vesting date, subject to Sections 3 and 4 of this Agreement. Notwithstanding the foregoing, for purposes of complying with Code Section 409A, if the RSUs are considered Deferred Compensation, the Participant is a U.S. Taxpayer and the Shares are to be settled in connection with a termination of service, the Company and the Participant shall take all steps necessary (including with regard to any post-termination services by the Participant) to ensure that a termination contemplated under Section 6 constitutes a “separation from service” within the meaning of Code Section 409A. In addition, if the RSUs are Deferred Compensation, the Participant is a U.S. Taxpayer, the RSUs are payable in connection with the Participant’s separation from service and the Participant is a “specified employee” within the meaning of Code Section 409A on the date the Participant experiences a separation from service, then the RSUs shall be settled on the first business day of the seventh month following the Participant’s separation from service, or, if earlier, on the date of the Participant’s death, solely to the extent such delayed payment is required in order to avoid a prohibited distribution under Code Section 409A. |
9. | Rights as Shareholder. The Participant shall not have voting or any other rights as a shareholder of the Company with respect to the RSUs. Upon issuance of the Shares pursuant to and in accordance with Section 8, the Participant will obtain full voting and other rights as a shareholder of the Company. |
10. | Incentive Repayment Policy. If the Participant has been designated and notified by the board of directors of the Company that he or she is a reporting officer for purposes of Section 16 of the U.S. Securities Exchange Act of 1934, the Participant is subject to Aon’s Incentive Repayment Policy (the “Policy”). The Policy provides that the Company will have the discretion to cancel or require reimbursement to the Company of the long-term equity based incentive award set forth in this Agreement if the grant or vesting was based on the achievement of financial results that were subsequently restated. The Participant can obtain a copy of the Policy from the Global Compensation team. If the Participant is subject to the Policy, by accepting this Agreement, the Participant hereby agrees and acknowledges that he or she will be bound by it. |
11. | Other Provisions. |
a) | Plan Terms Take Precedence over Agreement Terms. RSUs are granted pursuant to the Plan, the terms and conditions of which are incorporated into this Agreement by reference. If there are any inconsistencies between the terms of this Agreement and the Plan, the terms of the Plan will govern. |
b) | Prior Agreement(s) Will Not Control. The Participant’s acceptance of this Agreement will supersede provisions of any prior agreement that could be construed as governing the terms of this grant. |
c) | Code Section 409A. The RSUs and amounts payable thereunder are intended to be exempt from or compliant with Code Section 409A and the U.S. Treasury Regulations relating thereto so as not to subject the Participant to the payment of additional taxes and interest under Code Section 409A or other adverse tax consequences. In furtherance of this intent, the provisions of this Agreement will be interpreted, operated, and administered in a manner consistent with these intentions. The Committee may modify the terms of this Agreement and/or the Plan, without the consent of the Participant, in the manner that the Committee may determine to be necessary or advisable in order to comply with Code Section 409A or to mitigate any additional tax, interest and/or penalties or other adverse tax consequences that may apply under Code Section 409A if compliance is not practical. This Section 11(c) does not create an obligation on the part of the Company to modify the terms of this Agreement or the Plan and does not guarantee that the RSUs or the delivery of Shares upon vesting/settlement of the RSUs will not be subject to taxes, interest and penalties or any other adverse tax consequences under Code Section 409A. Nothing in this Agreement shall provide a basis for any person to take any action against the Company or any of its Subsidiaries or Affiliates based on matters covered by Code Section 409A, including the tax treatment of any amounts paid under this Agreement, and neither the Company nor any of its Subsidiaries or Affiliates will have any liability under any circumstances to the Participant or any other party if the RSUs, the delivery of Shares upon vesting/settlement of the RSUs or other payment or tax event hereunder that is intended to be exempt from, or compliant with, Code Section 409A, is not so exempt or compliant or for any action taken by the Committee with respect thereto. Further, settlement of any portion of the RSUs that is Deferred Compensation may not be accelerated or postponed except to the extent permitted by Code Section 409A. |
d) | Restriction on Transfer. RSUs may not be sold, transferred, pledged, assigned, or otherwise alienated at any time. |
e) | Right of Employment. Grants of RSUs under the Plan and of this Agreement do not confer upon the Participant any right to continue in the employ or service of the Employer. This Agreement shall survive any termination of the Participant’s employment for any or no reason. |
f) | Electronic Delivery and Acceptance. The Company may, in its sole discretion, decide to deliver any documents related to current or future participation in the Plan by electronic means. The Participant hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company. |
g) | Need to Accept Grant. The Participant acknowledges that this grant must be accepted within ninety (90) days of the Grant Date in order to be eligible to receive any benefits from this grant. If this grant is not accepted within the ninety (90)-day period specified in the foregoing sentence, all benefits under this grant may be forfeited, as determined in the sole discretion of the Committee. To accept this grant, the Participant must access the www.netbenefits.fidelity.com website and follow the instructions for acceptance. If this grant was distributed to the Participant via mail, the Participant must sign the Agreement and return it to the Company within ninety (90) days. |
h) | Waiver; Section Headings. Waiver of any term or condition of this Agreement by any party shall not be construed as a waiver of a subsequent breach or failure of the same term or condition, or a waiver of any other term or condition of this Agreement. Any waiver must be in writing. The Section headings in this Agreement are for convenience only and are not to be used in interpreting this Agreement. |
i) | Severability. To the extent that the terms set forth in this Agreement or any word, phrase, clause or sentence is found to be illegal or unenforceable by a court of competent jurisdiction for any reason, such term, word, phrase, clause or sentence shall be modified in such manner so as to afford the Company the fullest protection commensurate with making this Agreement, as modified, legal and enforceable under applicable laws. If, however, a court of competent jurisdiction finds that any such term, word, phrase, clause or sentence cannot be so modified and thus made enforceable, or otherwise declines for any reason to do so, such term, word, phrase, |
j) | Governing Law. The validity, interpretation, instruction, performance, enforcement and remedies of or relating to this Agreement, and the rights and obligations of the parties hereunder, shall be governed by and construed in accordance with the substantive internal laws of the State of Illinois, without regard to the conflict of law principles, rules or statutes of any jurisdiction. The foregoing provisions of this Section 11(j) shall apply irrespective of whether the Participant is a party to or bound by another restrictive covenant of any kind that may be governed by the laws of another jurisdiction (if any). |
k) | Venue and Jurisdiction. Venue for any legal proceedings instituted related to this Agreement shall be exclusively in the state and/or federal courts located in Cook County, Illinois, and the Participant hereby knowingly, voluntarily and irrevocably agrees, consents and submits to the exclusive jurisdiction and venue of such courts within the State of Illinois. The Participant further hereby knowingly, voluntarily and irrevocably waives, and agrees not to assert, any objection, challenge or defense to such exclusive venue or jurisdiction (including without limitation any defense of forum non conveniens), and further agrees not to file any claim or action related to this Agreement in any other jurisdiction or venue. The foregoing provisions of this Section 11(k) shall apply irrespective of whether the Participant is a party to or bound by another restrictive covenant of any kind that may provide for or permit venue or jurisdiction with respect to such other restrictive covenant in any other court or forum (if any). |
l) | Notice. All notices given hereunder shall be in writing and, if intended for the Company, shall be addressed to it or delivered to it at its principal office in London, England to the attention of the General Counsel or its principal office in Chicago, Illinois to the attention of the Chief Human Resources Officer. If intended for the Participant, notices shall be delivered personally or shall be addressed (if sent by mail) to the Participant’s then current residence address as shown on the Company’s records, or to such other address as the Participant directs in a notice to the Company. All notices shall be deemed to be given on the date received at the address of the addressee or, if delivered personally, on the date delivered. |
m) | Compliance with Law. Notwithstanding any other provision of the Plan or this Agreement, unless there is an available exemption from any registration, qualification or other legal requirement applicable to the Shares, the Company shall not be required to deliver any Shares issuable upon vesting/settlement of the RSUs prior to the completion of any registration or qualification of the Shares under any local, state, federal or foreign securities or exchange control law or under rulings or regulations of the U.S. Securities and Exchange Commission (“SEC”) or of any other governmental regulatory body, or prior to obtaining any approval or other clearance from any local, state, federal or foreign governmental agency, which registration, qualification or approval the Company shall, in its absolute discretion, deem necessary or advisable. The Participant understands that the Company is under no obligation to register or qualify the Shares with the SEC or any state or foreign securities commission or to seek approval or clearance from any governmental authority for the issuance or sale of the Shares. Further, the Participant agrees that the Company shall have unilateral authority to amend the Plan and the Agreement without the Participant’s consent to the extent necessary to comply with securities or other laws applicable to issuance of Shares. |
n) | No Advice Regarding Grant. The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding the Participant’s participation in the Plan, or the acquisition or sale of the underlying Shares. The Participant should consult with his or her own personal tax, legal and financial advisors regarding his or her participation in the Plan and execution of this Agreement, before executing this Agreement or otherwise taking any action at any time related to the Plan. |
o) | Appendices. Notwithstanding any provision of this Agreement to the contrary, if the Participant resides in a country outside the United States or is otherwise subject to the laws of a country other than the United States, the RSUs shall be subject to the terms and conditions set forth in Appendix A to this Agreement and to any special terms and provisions as set forth in Appendix B for the Participant’s country, if any. Moreover, if the Participant relocates to one of the countries included in Appendix B, the special terms and conditions for such country will apply to the Participant, to the extent the Company determines that the application of such terms and conditions is necessary or advisable for legal or administrative reasons. Appendices A and B constitute part of this Agreement. |
p) | Imposition of Other Requirements. The Company reserves the right to impose other requirements on the Participant’s participation in the Plan, on the RSUs and on any Shares acquired under the Plan, to the extent the Company determines it is necessary or advisable for legal or administrative reasons, and to require the Participant to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing. |
Years of Service | Allocation Rate |
Less than 5 years | 3% |
5 to 9 years | 4% |
10 to 14 years | 5% |
15 or more years | 6% |
Years Ended December 31, | ||||||||||||||||||||
(millions except ratio) | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||
Income from continuing operations before income taxes and noncontrolling interests | $ | 1,669 | $ | 1,689 | $ | 1,765 | $ | 1,538 | $ | 1,380 | ||||||||||
Less: Equity in earnings on less than 50% owned entities | 13 | 13 | 12 | 20 | 13 | |||||||||||||||
Add back fixed charges: | ||||||||||||||||||||
Interest on indebtedness | 282 | 273 | 255 | 210 | 228 | |||||||||||||||
Interest on uncertain tax positions | — | — | 4 | 5 | 5 | |||||||||||||||
Portion of rents representative of interest factor | 32 | 45 | 50 | 52 | 42 | |||||||||||||||
Income as adjusted | $ | 1,970 | $ | 1,994 | $ | 2,062 | $ | 1,785 | $ | 1,642 | ||||||||||
Fixed charges: | ||||||||||||||||||||
Interest on indebtedness | $ | 282 | $ | 273 | $ | 255 | $ | 210 | $ | 228 | ||||||||||
Interest on uncertain tax positions | — | — | 4 | 5 | 5 | |||||||||||||||
Portion of rents representative of interest factor | 32 | 45 | 50 | 52 | 42 | |||||||||||||||
Total fixed charges | $ | 314 | $ | 318 | $ | 309 | $ | 267 | $ | 275 | ||||||||||
Ratio of earnings to fixed charges | 6.3 | 6.3 | 6.7 | 6.7 | 6.0 |
Jurisdiction of Incorporation or Organization | ||||
Name | Country | State/Province | ||
Aon Angola Corretores de Seguros Limitada | Angola | |||
Admiseg SA | Argentina | |||
Aon Affinity Argentina S.A. | Argentina | |||
Aon Assist Argentina S.A. | Argentina | |||
Aon Benfield Argentina S.A. | Argentina | |||
Aon Consulting Argentina S.A. | Argentina | |||
Aon Risk Services Argentina S.A. | Argentina | |||
Asevasa Argentina S.A. | Argentina | |||
Hewitt Associates, S.A. | Argentina | |||
Marinaro Dundas S.A. | Argentina | |||
SN Re S.A. | Argentina | |||
Swire Blanch MSTC II SA | Argentina | |||
Swire Blanch MSTC SA | Argentina | |||
Aon Aruba N.V. | Aruba | |||
Aon Captive Services Aruba N.V. | Aruba | |||
Aon Australia Group Pty Ltd | Australia | |||
Aon Australian Holdco 1 Pty Ltd | Australia | |||
Aon Australian Holdco 2 Pty Ltd | Australia | |||
Aon Australian Holdco 3 Pty Ltd | Australia | |||
Aon Benfield Australia Limited | Australia | |||
Aon Charitable Foundation Pty Ltd | Australia | |||
Aon Consolidation Group Pty Ltd | Australia | |||
Aon Corporation Australia Limited | Australia | |||
Aon Group Pty Ltd | Australia | |||
Aon Hewitt Financial Advice Limited | Australia | |||
Aon Hewitt Limited | Australia | |||
Aon Holdings Australia Pty Limited | Australia | |||
Aon Product Design & Development Australia Pty Limited | Australia | |||
Aon Risk Services Australia Limited | Australia | |||
Aon Services Pty Ltd. | Australia | |||
Aon Superannuation Pty Limited | Australia | |||
Hewitt Associates Pty Ltd | Australia | |||
HIA Insurance Services Pty Ltd. | Australia | |||
One Underwriting Pty Ltd | Australia | |||
Aon Austria Versicherungsmakler GmbH | Austria | |||
Aon Benfield Rückversicherungsmakler GmbH | Austria | |||
Aon Hewitt GmbH | Austria | |||
Aon Holdings Austria GmbH | Austria | |||
Aon Jauch & Hübener GmbH | Austria | |||
Insurance Company of the Bahamas Limited | Bahamas | |||
J.S. Johnson & Company Limited | Bahamas | |||
Aon Bahrain W.L.L. | Bahrain | |||
Aon Insurance Managers (Barbados) Ltd. | Barbados | |||
Agenion N.V./SA | Belgium | |||
Aon Belgium B.V.B.A. | Belgium |
Jurisdiction of Incorporation or Organization | ||||
Name | Country | State/Province | ||
Crion N.V. | Belgium | |||
Probabilitas N.V./SA | Belgium | |||
Anchor Underwriting Managers Ltd. | Bermuda | |||
Aon (Bermuda) Ltd. | Bermuda | |||
Aon Benfield Group Limited | Bermuda | |||
Aon Bermuda Holding Company Limited | Bermuda | |||
Aon Bermuda QI Holdings Ltd. | Bermuda | |||
Aon Delta Bermuda Ltd. | Bermuda | |||
Aon Finance Bermuda 1 Ltd. | Bermuda | |||
Aon Finance Bermuda 2 Ltd. | Bermuda | |||
Aon Group (Bermuda) Ltd. | Bermuda | |||
Aon Hewitt (Bermuda) Ltd. | Bermuda | |||
Aon Insurance Managers (Bermuda) Ltd | Bermuda | |||
Aon Underwriting Managers (Bermuda) Ltd. | Bermuda | |||
Benfield Investment Holdings Limited | Bermuda | |||
Benfield Juniperus Holdings Limited | Bermuda | |||
International Risk Management Group Ltd | Bermuda | |||
White Rock Insurance (Americas) Ltd. | Bermuda | |||
White Rock Insurance (SAC) Ltd. | Bermuda | |||
Aon Bolivia S.A. Corredores de Seguros | Bolivia | |||
Aon Consulting Bolivia S.R.L. | Bolivia | |||
Aon Re Bolivia S.A. Corredores de Reaseguros | Bolivia | |||
Aon Botswana (Pty) Ltd. | Botswana | |||
Aon Holdings Botswana (Pty) Ltd | Botswana | |||
Aon Risk Management (Pty) Ltd | Botswana | |||
Glenrand MIB Botswana (Pty) Ltd | Botswana | |||
Adm Administradora de Beneficios Ltda. | Brazil | |||
Admix - Administracao, Consultoria, Participacoes e Corretora de Seguros de Vida Ltda. | Brazil | |||
Aon Affinity Administradora de Beneficios Ltda. | Brazil | |||
Aon Affinity do Brasil Servicos e Corretora de Seguros Ltda. | Brazil | |||
Aon Affinity Servicos e Participacoes Ltda. | Brazil | |||
Aon Benfield Brasil Corretora de Resseguros Ltda. | Brazil | |||
Aon Holdings Corretores de Seguros Ltda. | Brazil | |||
Associação Instituto Aon | Brazil | |||
Benfield do Brasil Participacoes Ltda. (dormant) | Brazil | |||
Farmaseg - Solucoes, Assistencia e Servicos Empresariais Ltda. | Brazil | |||
Hewitt Associates Administradora e Corretora de Seguros Ltda. | Brazil | |||
Hewitt Associates Servicos de Recursos Humanos Ltda. | Brazil | |||
Aon Bulgaria Ltd. | Bulgaria | |||
Aon Business Consulting Ltd. | Bulgaria | |||
Andes Global Ltd. | BVI | |||
Aon Group Limited | BVI | |||
682465 Canada Ltd. | Canada | |||
7193599 Canada Inc. | Canada | |||
Alexander & Alexander Services Canada Inc. | Canada | |||
Aon Benfield Canada ULC | Canada | |||
Aon Canada Holdings N.S. ULC | Canada | |||
Aon Canada Inc. | Canada |
Jurisdiction of Incorporation or Organization | ||||
Name | Country | State/Province | ||
Aon Canada Intermediaries GP | Canada | |||
Aon Direct Group Inc. | Canada | |||
Aon Finance Canada 1 Corp. | Canada | |||
Aon Finance Canada 2 Corp. | Canada | |||
Aon Finance International N.S. ULC | Canada | |||
Aon Finance N.S. 1, ULC | Canada | |||
Aon Finance N.S. 2, ULC | Canada | |||
Aon Finance N.S. 3, ULC | Canada | |||
Aon Finance N.S. 4, ULC | Canada | |||
Aon Finance N.S. 5, ULC | Canada | |||
Aon Finance N.S. 6, ULC | Canada | |||
Aon Finance N.S. 7, ULC | Canada | |||
Aon Finco N.S. 2012-1, ULC | Canada | |||
Aon Finco N.S. 2012-2, ULC | Canada | |||
Aon Hewitt Inc. | Canada | |||
Aon Hewitt Investment Management Inc. | Canada | |||
Aon Parizeau Inc. | Canada | |||
Aon Reed Stenhouse Inc. | Canada | |||
Aon Risk Services Canada Inc. | Canada | |||
Aon Securities Investment Management Inc. | Canada | |||
Coles Hewitt Partnership | Canada | |||
Dominion Mutual Insurance Brokers Ltd. | Canada | |||
Groupe-Conseil Aon Inc. | Canada | |||
Hewitt Amalco 1 ULC | Canada | |||
Hewitt Amalco 2 ULC | Canada | |||
Hewitt Amalco 3 ULC | Canada | |||
Hewitt Amalco 4 ULC | Canada | |||
Hewitt Amalco 5 ULC | Canada | |||
Hewitt Associates Corp. | Canada | |||
Hewitt Associates Partnership | Canada | |||
Hewitt Holdings Canada Company | Canada | |||
Hewitt Management Ltd. | Canada | |||
Hewitt Western Management Amalco Inc. | Canada | |||
IAO Actuarial Consulting Services Canada Inc. | Canada | |||
J. Allan Brown Consultants, Inc. | Canada | |||
K & K Insurance Brokers, Inc. Canada | Canada | |||
Linx Underwriting Solutions Inc. | Canada | |||
M.A. Shakeel Management Ltd. Amalco | Canada | |||
Minet Inc. | Canada | |||
Risk Management Consultants of Canada Limited | Canada | |||
Sheppard Canada Holding N.S. ULC | Canada | |||
USLP Underwriting Solutions LP | Canada | |||
Aon Insurance Managers (Cayman) Ltd. | Cayman Islands | |||
Aon Risk Solutions (Cayman) Ltd. | Cayman Islands | |||
United Insurance Company | Cayman Islands | |||
Aon Affinity Chile Ltda. | Chile | |||
Aon Benfield (Chile) Corredores de Reaseguros Ltda. | Chile | |||
Aon Consulting (Chile) Limitada | Chile |
Jurisdiction of Incorporation or Organization | ||||
Name | Country | State/Province | ||
Aon Risk Services (Chile) S.A. | Chile | |||
Aon Risk Services Holdings (Chile ) Ltda. | Chile | |||
Asevasa Chile Peritaciones e Ingenieria de Riesgos, S.A. | Chile | |||
Benfield Corredores de Reaseguro Ltda. | Chile | |||
Inversiones Benfield Chile Ltda. | Chile | |||
Aon Hewitt Consulting (Shanghai) Co., Ltd. | China | |||
Aon-COFCO Insurance Brokers Co., Ltd. | China | |||
Aon Affinity Colombia Ltda. Agencia de Seguros | Colombia | |||
Aon Benfield Colombia Limitada Corredores de Reaseguros | Colombia | |||
Aon Risk Services Colombia SA Corredores de Seguros | Colombia | |||
Salud, Riesgos y Recursos Humanos Consultores Ltda. (former Aon Corporte Advisors Ltda.) | Colombia | |||
Tecsefin, S.A. en liquidacion | Colombia | |||
Aon Business Consultancy Ltd. | Croatia | |||
Aon Insurance Brokerage Ltd. | Croatia | |||
Alexander Insurance Managers (Netherlands Antilles) N.V. | Curacao | |||
Aon Antillen N.V. | Curacao | |||
Aon Captive Services Antilles N.V. | Curacao | |||
Aon Holdings Antillen N.V. | Curacao | |||
Aon Insurance Managers (Antilles) N.V. | Curacao | |||
Aon Cyprus Insurance Broker Company Limited | Cyprus | |||
Aon Hewitt (Cyprus) Limited | Cyprus | |||
Aon Central and Eastern Europe a.s. | Czech Rep. | |||
Aon Denmark A/S | Denmark | |||
Aon Denmark Insurance Services A/S | Denmark | |||
Aon Riskminder A/S | Denmark | |||
Optica Insurance Agency A/S | Denmark | |||
Akaoasesores Cia. Ltda. | Ecuador | |||
Aon Consulting Ecuador S.A. | Ecuador | |||
Aon Risk Services Ecuador S.A. Agencia Asesora Productora de Seguros | Ecuador | |||
Tecsefin Salvador (dormant) | El Salvador | |||
Riskikonsultatsioonid OÜ | Estonia | |||
Aon (Fiji) Ltd. | Fiji | |||
Aon Finland Oy | Finland | |||
Aon France | France | |||
Aon Holdings France SNC | France | |||
Hewitt Associates SAS | France | |||
International Space Brokers France | France | |||
Kloud S.à.r.l. | France | |||
Aon Beteiligungsmanagement Deutschland GmbH & Co. KG | Germany | |||
Aon Credit International Insurance Broker GmbH | Germany | |||
Aon Deutschland Beteiligungs GmbH | Germany | |||
Aon Hewitt GmbH | Germany | |||
Aon Hewitt Trust Solutions GmbH | Germany | |||
Aon Holding Deutschland GmbH | Germany | |||
Aon Pensions Insurance Brokers GmbH | Germany | |||
Aon Risiko & Versicherungsberatungs GmbH | Germany | |||
Aon Versicherungsmakler Deutschland GmbH | Germany |
Jurisdiction of Incorporation or Organization | ||||
Name | Country | State/Province | ||
Hamburger Gesellschaft zur Forderung des Versicherungswesens mbH | Germany | |||
Motor Versicherungsmakler GmbH | Germany | |||
One Underwriting Agency GmbH | Germany | |||
PRORÜCK Ruckversicherungs Aktiengesellschaft | Germany | |||
UNIT Versicherungsmakler GmbH | Germany | |||
WACUS Delkredere Management GmbH | Germany | |||
Aon Insurance Managers Gibraltar Ltd. | Gibraltar | |||
White Rock Insurance (Gibraltar) PCC Ltd. | Gibraltar | |||
Aon Greece S.A. | Greece | |||
Aon Hewitt S.A. | Greece | |||
Agostini Insurance Brokers Grenada Limited | Grenada | |||
Aon Insurance Micronesia (Guam) Inc | Guam (Micronesia) | |||
Tecsefin Guatemala | Guatemala | |||
Aon Insurance Managers (Guernsey) Ltd. | Guernsey | |||
Aon Insurance Managers (Holdings) Ltd. | Guernsey | |||
Aon PMI International Limited | Guernsey | |||
Aon Services (Guernsey) Ltd | Guernsey | |||
Lincolnshire Insurance Company PCC Limited | Guernsey | |||
Lombard Trustee Company Limited | Guernsey | |||
White Rock Insurance (Guernsey) ICC Limited | Guernsey | |||
White Rock Insurance Company PCC Ltd. | Guernsey | |||
Aon (CR) Insurance Agencies Company Limited | Hong Kong | |||
Aon Agencies Hong Kong Limited | Hong Kong | |||
Aon Assurance Agencies Hong Kong Limited | Hong Kong | |||
Aon Benfield China Limited | Hong Kong | |||
Aon Chevalier Risk Management Hong Kong Limited | Hong Kong | |||
Aon Commercial Insurance Agencies Hong Kong Limited | Hong Kong | |||
Aon Enterprise Insurance Agencies Hong Kong Limited | Hong Kong | |||
Aon Hewitt Hong Kong Limited | Hong Kong | |||
Aon Holdings Hong Kong Limited | Hong Kong | |||
Aon Hong Kong Limited | Hong Kong | |||
Aon Insurance Agencies (HK) Limited | Hong Kong | |||
Aon Insurance Management Agencies (HK) Limited | Hong Kong | |||
Aon Insurance Underwriting Agencies Hong Kong Limited | Hong Kong | |||
Aon Product Risk Services Hong Kong Limited | Hong Kong | |||
Aon Securities (Hong Kong) Limited | Hong Kong | |||
Aon Services Hong Kong Limited | Hong Kong | |||
Aon Underwriting Agencies (HK) Limited | Hong Kong | |||
Asian Reinsurance Underwriters Limited | Hong Kong | |||
Contingency Insurance Brokers Limited | Hong Kong | |||
Essar Insurance Services Limited | Hong Kong | |||
EW Blanch Limited | Hong Kong | |||
SF (Asia) Limited | Hong Kong | |||
Aon Hungary Insurance Brokers Risk and Human Consulting LLC | Hungary | |||
Aon Consulting Private Limited | India | |||
Aon Global Insurance Brokers Private Limited | India | |||
Aon HR Services India Private Limited | India | |||
Aon Services India Private Limited | India |
Jurisdiction of Incorporation or Organization | ||||
Name | Country | State/Province | ||
Aon Specialist Services Private Limited | India | |||
Cocubes Technologies Private Limited | India | |||
Ennis Knupp & Associates India Private Limited | India | |||
Hewitt Human Resource Services Limited | India | |||
Hewitt Outsourcing Services India Limited | India | |||
S Quotient Analyzers Private Limited | India | |||
PT Aon Benfield Indonesia | Indonesia | |||
PT Aon Hewitt Indonesia | Indonesia | |||
PT Aon Indonesia | Indonesia | |||
Aon Broking Technology Limited | Ireland | |||
Aon Centre for Innovation and Analytics Ltd | Ireland | |||
Aon Commercial Services and Operations Ireland Limited | Ireland | |||
Aon Commercial Services Ireland Limited | Ireland | |||
Aon Global Risk Research Limited | Ireland | |||
Aon Hewitt (Ireland) Limited | Ireland | |||
Aon Hewitt Management Company Limited | Ireland | |||
Aon Insurance Managers (Dublin) Ltd. | Ireland | |||
Aon Insurance Managers (Shannon) Limited | Ireland | |||
Aon Investment Holdings Ireland Limited | Ireland | |||
Aon MacDonagh Boland Group Ltd | Ireland | |||
Bacon & Woodrow Partnerships (Ireland) Limited | Ireland | |||
Beaubien Finance Ireland Limited | Ireland | |||
Becketts (Trustees) Limited | Ireland | |||
Becketts Limited | Ireland | |||
Beech Hill Pension Trustees Ltd | Ireland | |||
Benton Finance Ireland Limited | Ireland | |||
Delany Bacon & Woodrow Partnership | Ireland | |||
MacDonagh Boland Crotty MacRedmond Ltd | Ireland | |||
Private Client Trustees Ltd. | Ireland | |||
Randolph Finance Unlimited Company | Ireland | |||
Aon Treasury Ireland Limited | Ireland | |||
Aon Risk Services (NI) Limited | Ireland (Northern) | |||
Aon (Isle of Man) Limited | Isle of Man | |||
Aon Corporate Services (Isle of Man) Limited | Isle of Man | |||
Aon Holdings (Isle of Man) Limited | Isle of Man | |||
Aon Insurance Managers (Isle of Man) Ltd. | Isle of Man | |||
White Rock Insurance PCC (Isle of Man) Limited | Isle of Man | |||
Aminim International Underwriters of Insurance Agencies (1990) Ltd. | Israel | |||
Aon Benfield Israel Limited | Israel | |||
Aon Holdings Israel Ltd. | Israel | |||
Aon Israel Insurance Brokerage Ltd. | Israel | |||
Delek Motors Insurance Agency (2003) Ltd | Israel | |||
I. Beck Insurance Agency (1994) Ltd. | Israel | |||
National Insurance Office Ltd. | Israel | |||
Ronnie Elementary Insurance Agency Ltd | Israel | |||
Aon Benfield Italia S.p.A. | Italy | |||
Aon Hewitt Risk & Consulting S.r.l. | Italy | |||
Aon Italia S.r.l. | Italy |
Jurisdiction of Incorporation or Organization | ||||
Name | Country | State/Province | ||
Aon Re Trust Broker S.r.l. | Italy | |||
Aon S.p.A. Insurance & Reinsurance Brokers | Italy | |||
Asscom Insurance Brokers S.r.l. | Italy | |||
Praesidium S.p.A. - Soluzioni Assicurative per il Management | Italy | |||
US Underwriting Solutions S.r.l. | Italy | |||
Aon Benfield Japan Ltd | Japan | |||
Aon Hewitt Japan Ltd. | Japan | |||
Aon Holdings Japan Ltd | Japan | |||
Aon Japan Ltd | Japan | |||
Y's Insurance Inc | Japan | |||
Aon Consulting Kazakhstan LLP | Kazakhstan | |||
Insurance Broker Aon Kazakhstan LLP | Kazakhstan | |||
Aon Consulting Ltd. | Kenya | |||
Aon Kenya Insurance Brokers Ltd | Kenya | |||
Minken Properties Ltd. | Kenya | |||
Aon Hewitt Consulting Korea Inc. | Korea | |||
Aon Korea Inc. | Korea | |||
SIA "Aon Consulting" | Latvia | |||
UADBB Aon Baltic - Latvian branch | Latvia | |||
Aon Lesotho (Pty) Ltd. | Lesotho | |||
Aon Insurance Managers (Liechtenstein) AG | Liechtenstein | |||
UADBB Aon Baltic | Lithuania | |||
Aon Finance Luxembourg S.à.r.l. | Luxembourg | |||
Aon Global Risk Consulting Luxembourg S.à.r.l. | Luxembourg | |||
Aon Holdings Luxembourg S.à.r.l. | Luxembourg | |||
Aon Insurance Managers (Luxembourg) S.A. | Luxembourg | |||
Aon Neudorf Finance S.à.r.l. | Luxembourg | |||
Aon Re Canada Holdings SARL | Luxembourg | |||
Puricelli & Ghezzi International S.A. | Luxembourg | |||
Aon Insurance Agencies (Macau) Limited | Macau | |||
Aon Malawi Limited | Malawi | |||
Aon Benfield Malaysia Limited | Malaysia | |||
Aon Hewitt Malaysia Sdn Bhd | Malaysia | |||
Aon Insurance Brokers (Malaysia) Sdn Bhd | Malaysia | |||
Aon Insurance Managers (Malta) PCC Limited | Malta | |||
Aon Services (Malta) Ltd | Malta | |||
White Rock Insurance (Europe) PCC Limited | Malta | |||
White Rock Insurance (Netherlands) PCC Limited | Malta | |||
Aon Hewitt Ltd. | Mauritius | |||
Aon Mauritius Holdings Ltd. | Mauritius | |||
Glenrand MIB (Mauritius) (Pte) Ltd | Mauritius | |||
Aon Affinity Mexico Agente de Seguros y de Fianzas, S.A. de C.V. | Mexico | |||
Aon Affinity Mexico, S.A. de C.V. | Mexico | |||
Aon Benfield Mexico Intermediario de Reaseguro SA de CV | Mexico | |||
Aon Life, Agente de Seguros, S.A. de C.V. | Mexico | |||
Aon Mexico Business Support SA de CV | Mexico | |||
Aon Mexico Holdings, S. de R.L. de C.V. | Mexico | |||
Aon Risk Solutions Agente de Seguros y de Fianzas SA de CV | Mexico |
Jurisdiction of Incorporation or Organization | ||||
Name | Country | State/Province | ||
Asevasa Mexico, S.A. de C.V. | Mexico | |||
Hewitt Associates, S.C. | Mexico | |||
Hewitt Beneficios Agente de Seguros y de Fianzas, S.A. de C.V. | Mexico | |||
Aon Acore Sarl | Morocco | |||
Casablanca Intermediation Company Sarl | Morocco | |||
Aon Moçambique Corretores de Seguros, Limitada | Mozambique | |||
Glenrand M I B (Moçambique) Corretores de Seguros Limitada | Mozambique | |||
Aon Namibia (Pty) Ltd. | Namibia | |||
Namibia Administration Fulfillment Company (PtY) Limited | Namibia | |||
Alexander & Alexander B.V. | Netherlands | |||
Alexander & Alexander Holding B.V. | Netherlands | |||
Aon 2 B.V. | Netherlands | |||
Aon Americas Holdings BV | Netherlands | |||
Aon B.V. | Netherlands | |||
Aon Benfield Netherlands C.V. | Netherlands | |||
Aon CANZ Holdings B.V. | Netherlands | |||
Aon Captive Services (Nederland) B.V. | Netherlands | |||
Aon Cash Management B.V. | Netherlands | |||
Aon Corporation EMEA B.V. | Netherlands | |||
Aon Global Holdings 1 C.V. | Netherlands | |||
Aon Global Holdings 2 C.V. | Netherlands | |||
Aon Global Risk Consulting B.V. | Netherlands | |||
Aon Groep Nederland B.V. | Netherlands | |||
Aon Group Holdings International 1 B.V. | Netherlands | |||
Aon Group Holdings International 2 B.V. | Netherlands | |||
Aon Group International N.V. | Netherlands | |||
Aon Hewitt Nederland C.V. | Netherlands | |||
Aon Hewitt Risk & Financial Management B.V. | Netherlands | |||
Aon Holdings B.V. | Netherlands | |||
Aon Holdings International B.V. | Netherlands | |||
Aon Holdings Mid Europe B.V. | Netherlands | |||
Aon International Coöperatief U.A. | Netherlands | |||
Aon Latam Holdings N.V. | Netherlands | |||
Aon Lead QI B.V. | Netherlands | |||
Aon Nederland C.V. | Netherlands | |||
Aon Netherlands Operations B.V. | Netherlands | |||
Aon Nikols Chile B.V. | Netherlands | |||
Aon Participations B.V. | Netherlands | |||
Aon Restructuring B.V. | Netherlands | |||
Aon Risk Services EMEA B.V. | Netherlands | |||
Aon Southern Europe B.V. | Netherlands | |||
Aon Trust Services B.V. | Netherlands | |||
B.V. Assurantiekantoor Langeveldt-Schroder | Netherlands | |||
Bekouw Mendes C.V. | Netherlands | |||
Beursstraat 1A B.V. | Netherlands | |||
Bonnikeplein 18-22 B.V. | Netherlands | |||
Celinvest Amsterdam B.V. | Netherlands | |||
COT Instituut voor Veiligheids-en Crisismanagement B.V. | Netherlands |
Jurisdiction of Incorporation or Organization | ||||
Name | Country | State/Province | ||
De Admiraal B.V. | Netherlands | |||
Dorhout Mees Assurantien B.V. | Netherlands | |||
Hewitt Associates B.V. | Netherlands | |||
Hewitt Associates Outsourcing B.V. | Netherlands | |||
Jacobs & Brom B.V. | Netherlands | |||
Kerkenbos 1061 B.V. | Netherlands | |||
Paalbergweg 2-4 B.V. | Netherlands | |||
Aon Benfield New Zealand Limited | New Zealand | |||
Aon Holdings New Zealand | New Zealand | |||
Aon New Zealand | New Zealand | |||
Aon New Zealand Group ULC | New Zealand | |||
Aon Product Design and Development New Zealand Limited | New Zealand | |||
Aon Saver Limited | New Zealand | |||
Superannuation Management Nominees Limited | New Zealand | |||
Aon Norway AS | Norway | |||
Aon Majan LLC | Oman | |||
Aon Insurance Brokers (Pvt) Ltd. | Pakistan | |||
Aon Benfield Panama, S.A. | Panama | |||
Aon Broking Services SA | Panama | |||
Asevasa Caricam, S.A. | Panama | |||
Asevasa Panama, S.A. | Panama | |||
Tecsefin Centroamerica, S.A. | Panama | |||
Aon Hewitt (PNG) Ltd. | Papua new Guinea | |||
Aon Risk Services (PNG) Ltd. | Papua new Guinea | |||
Aon Superannuation (PNG) Limited | Papua new Guinea | |||
Aon Benfield Peru Corredores de Reaseguros SA | Peru | |||
Aon Graña Peru Corredores de Seguros SA | Peru | |||
Graña Asociados Soluciones, S.A.C. | Peru | |||
Aon Insurance and Reinsurance Brokers Philippines Inc. | Philippines | |||
Aon Hewitt Sp. z o.o. | Poland | |||
Aon Polska Services Sp. z o.o. | Poland | |||
Aon Polska Sp. z o.o. | Poland | |||
Carstens i Schües Poland Sp. z o.o. | Poland | |||
Aon Motor - Gestao e Consultoria de Frotas Unipessoal, Lda | Portugal | |||
Aon Portugal - Consultores, Unipessoal, Lda. | Portugal | |||
Aon Portugal - Corretores de Seguros, S.A. | Portugal | |||
Aon Re Bertoldi - Corretagem de Resseguros S.A. | Portugal | |||
Aon Qatar LLC | Qatar | |||
Aon Consulting Romania SRL | Romania | |||
Aon Romania Broker de Asigurare - Reasigurare SRL | Romania | |||
Aon Rus Insurance Brokers LLC | Russia | |||
Aon Rus LLC | Russia | |||
Agostini Insurance Brokers (St. Lucia) Limited | Saint Lucia | |||
Aon Sint Maarten N.V. | Saint Martin | |||
Aon Insurance Micronesia (Saipan) Inc | Saipan (Micronesia) | |||
Aon Hewitt Saudi Arabia LLC | Saudi Arabia | |||
Aon Saudi Arabia LLC | Saudi Arabia | |||
Alexander & Alexander (Asia) Holdings Pte Ltd | Singapore |
Jurisdiction of Incorporation or Organization | ||||
Name | Country | State/Province | ||
Aon Benfield Asia Pte. Ltd. | Singapore | |||
Aon Hewitt Singapore Pte. Ltd. | Singapore | |||
Aon Hewitt Wealth Management Pte. Ltd. | Singapore | |||
Aon Insurance Agencies Pte Ltd | Singapore | |||
Aon Insurance Managers (Singapore) Pte Ltd | Singapore | |||
Aon Singapore (Broking Centre) Pte. Ltd. | Singapore | |||
Aon Singapore Center for Innovation, Strategy and Management Pte. Ltd. | Singapore | |||
Aon Singapore Pte. Ltd. | Singapore | |||
Stenhouse (South East Asia) Pte. Ltd. | Singapore | |||
Twoness Holding Pte Ltd | Singapore | |||
Aon Benfield Bratislava s.r.o. | Slovak Republic | |||
Aon Consulting South Africa (Pty) Ltd. | South Africa | |||
Aon Holdings Sub-Sahara Africa (Pty) Ltd. | South Africa | |||
Aon Limpopo (Pty) Ltd. | South Africa | |||
Aon Re Africa (Pty) Limited | South Africa | |||
Aon South Africa (Pty) Ltd. | South Africa | |||
Aon Worldaware (Pty) Ltd. | South Africa | |||
Claims Fulfilment Company (Pty) Ltd. | South Africa | |||
Mafube Risk and Insurance Consultants (Pty) Ltd. | South Africa | |||
TM Insurance Brokers (Pty) Ltd. | South Africa | |||
Aon Benfield Iberia Correduria de Reaseguros, S.A.U. | Spain | |||
Aon Cover Agencia de Suscripcion, S.L.U. | Spain | |||
Aon Gil y Carvajal, S.A.U. Correduria de Seguros | Spain | |||
Aon Hewitt España S.A.U. | Spain | |||
Aon Management Solutions, S.A.U. | Spain | |||
Aon Marketing Directo, S.A.U. | Spain | |||
Aon Southern Europe y Cia SC | Spain | |||
Aon Southern Holding Spain, S.L. | Spain | |||
Asevasa Asesoramiento y Valoraciones S.A.U. | Spain | |||
Fundación Aon España | Spain | |||
Aon Swaziland (Pty) Ltd | Swaziland | |||
Aon Global Risk Consulting AB | Sweden | |||
Aon Hewitt AB | Sweden | |||
Aon Sweden AB | Sweden | |||
SINSER Holding AB | Sweden | |||
Aon Insurance Managers (Switzerland) AG | Switzerland | |||
Aon Schweiz AG | Switzerland | |||
Inpoint Switzerland GmbH | Switzerland | |||
Stroz Friedberg GmbH | Switzerland | |||
Aon Management Consulting Taiwan Ltd. | Taiwan | |||
Aon Taiwan Ltd. | Taiwan | |||
Aon Tanzania Limited | Tanzania | |||
Aon (Thailand) Limited | Thailand | |||
Aon Consulting (Thailand) Limited | Thailand | |||
Aon Group (Thailand) Limited | Thailand | |||
Aon Hewitt (Thailand) Ltd. | Thailand | |||
Aon Re (Thailand) Limited | Thailand | |||
Aon Risk Services (Thailand) Limited | Thailand |
Jurisdiction of Incorporation or Organization | ||||
Name | Country | State/Province | ||
A.B. Insurances Limited | Trinidad and Tobago | |||
Agostini Insurance Brokers Limited | Trinidad and Tobago | |||
AIB Services Limited | Trinidad and Tobago | |||
Aon Energy Caribbean Limited | Trinidad and Tobago | |||
Cardea Health Solutions Limited | Trinidad and Tobago | |||
Aon Tunisia So.car.gest S.A., Société Anonyme de Conseil en Assurances et Réassurances et de Gestion | Tunisia | |||
Aon Danismanlik Hizmetleri AS | Turkey | |||
Aon Sigorta ve Reasurans Brokerligi ve A.S. | Turkey | |||
J.S. Johnson & Company (Turks & Caicos) Limited | Turks & Caicos | |||
Aon Uganda Limited | Uganda | |||
Alexander Clay | UK | |||
Aon 180412 Limited (in liquidation) | UK | |||
Aon Adjudication Services Limited | UK | |||
Aon ANZ Holdings Limited | UK | |||
Aon Benfield Limited | UK | |||
Aon Consulting (Benefits) Holdings Limited (In liquidation) | UK | |||
Aon Consulting (Benefits) Limited (In liquidation) | UK | |||
Aon Consulting (Pensions) Limited (In liquidation) | UK | |||
Aon Consulting Financial Services Limited | UK | |||
Aon Consulting Limited | UK | |||
Aon DC Trustee Limited | UK | |||
Aon Delta UK Limited | UK | |||
Aon Global Holdings Limited | UK | |||
Aon Global Operations Limited | UK | |||
Aon Hewitt Limited | UK | |||
Aon Hewitt US Holdings Limited | UK | |||
Aon Holdings Limited | UK | |||
Aon Kloud Limited (In liquidation) | UK | |||
Aon Overseas Holdings Limited | UK | |||
Aon Pension Trustees Limited | UK | |||
Aon Risk Services UK Limited (in liquidation) | UK | |||
Aon Securities Limited | UK | |||
Aon Trust Corporation Limited | UK | |||
Aon UK Group Limited | UK | |||
Aon UK Holdings Intermediaries Limited | UK | |||
Aon UK Limited | UK | |||
Aon UK Trustees Limited | UK | |||
Aon US & International Holdings Limited | UK | |||
Bacon & Woodrow Limited (In liquidation) | UK | |||
Bacon & Woodrow Partnerships Limited | UK | |||
Bain Hogg Group Limited (in liquidation) | UK | |||
Bankassure Insurance Services Limited | UK | |||
Beaubien Finance Limited | UK | |||
Beaubien UK Finance Limited | UK | |||
Benfield Greig Holdings Limited (In liquidation) | UK | |||
Benton Finance Limited | UK | |||
CoSec 2000 Limited | UK |
Jurisdiction of Incorporation or Organization | ||||
Name | Country | State/Province | ||
Doveland Services Limited | UK | |||
E. W. Blanch Holdings Limited | UK | |||
E. W. Blanch Investments Limited | UK | |||
Eurotempest Limited | UK | |||
Gotham Digital Science Ltd. | UK | |||
Hewitt Associates Outsourcing Limited | UK | |||
Hewitt Risk Management Services Limited | UK | |||
Hogg Group Limited | UK | |||
International Space Brokers Europe Limited | UK | |||
International Space Brokers Limited | UK | |||
Jenner Fenton Slade Limited | UK | |||
McLagan (Aon) Limited | UK | |||
Minet Consultancy Services Ltd | UK | |||
Minet Group | UK | |||
NBS Nominees Limited | UK | |||
Randolph Finance Limited | UK | |||
Rasini Vigano Limited | UK | |||
Ringley Investments Limited | UK | |||
Scorpio Partnership Limited (In liquidation) | UK | |||
SLE Worldwide Limited | UK | |||
Stroz Friedberg Limited | UK | |||
The Aon MasterTrustee Limited | UK | |||
Aon Ukraine LLC | Ukraine | |||
Aon (DIFC) Gulf LLC | United Arab Emirates | |||
Aon Hewitt Middle East Limited | United Arab Emirates | |||
Aon Middle East Co LLC | United Arab Emirates | |||
Stroz Friedberg Risk Management Limited | United Arab Emirates | |||
Aon Benfield Middle East Limited | United Arab Emirates - DIFC | |||
Aon Benfield Latin America SA | Uruguay | |||
Marinaro Dundas SA | Uruguay | |||
Access Plans USA, Inc. | USA | Oklahoma | ||
Affinity Insurance Services, Inc. | USA | Pennsylvania | ||
AIS Affinity Insurance Agency, Inc. | USA | California | ||
AIS Insurance Agency, Inc. | USA | Washington | ||
Alexander Reinsurance Intermediaries, Inc. | USA | New York | ||
Allen Insurance Associates, Inc. | USA | California | ||
Alliance HealthCard of Florida, Inc. | USA | Georgia | ||
Alliance HealthCard, Inc. | USA | Georgia | ||
Allied Group Holdings LLC | USA | Delaware | ||
Allied North America Insurance Brokerage of California, LLC | USA | Delaware | ||
Allied North America Insurance Brokerage of New York, LLC | USA | Delaware | ||
Allied North America Insurance Brokerage of Texas, LLC | USA | Delaware | ||
Allied Risk Solutions, LLC | USA | Delaware | ||
American Insurance Services Corp. | USA | Texas |
Jurisdiction of Incorporation or Organization | ||||
Name | Country | State/Province | ||
American Safety Consultants, LLC | USA | Delaware | ||
American Special Risk Insurance Company | USA | Delaware | ||
AMXH, LLC | USA | Delaware | ||
Aon Advisors, Inc. | USA | Virginia | ||
Aon Advisory Services Inc. | USA | Delaware | ||
Aon Aviation, Inc. | USA | Illinois | ||
Aon Benefit Solutions Inc. | USA | Oklahoma | ||
Aon Benfield Fac Inc. | USA | Illinois | ||
Aon Benfield Global, Inc. | USA | Delaware | ||
Aon Benfield Inc. | USA | Illinois | ||
Aon Benfield Puerto Rico Inc. | USA | Puerto Rico | ||
Aon Brazil Holdings, LLC | USA | Delaware | ||
Aon Capital Managers, LLC | USA | Delaware | ||
Aon Capital Partners, Inc. | USA | Delaware | ||
Aon Chile Holdings, LLC | USA | Delaware | ||
Aon Consulting & Insurance Services | USA | California | ||
Aon Consulting Worldwide, Inc. | USA | Maryland | ||
Aon Consulting, Inc. | USA | New Jersey | ||
Aon Consulting, Inc. | USA | New York | ||
Aon Corporation | USA | Delaware | ||
Aon Finance US 1, LLC | USA | Delaware | ||
Aon Finance US 2, LLC | USA | Delaware | ||
Aon Finance US LP | USA | Delaware | ||
Aon Financial & Insurance Solutions, Inc. | USA | California | ||
Aon Global Market Solutions, Inc. | USA | Tennessee | ||
Aon Group, Inc. | USA | Maryland | ||
Aon Hewitt Benefit Payment Services, LLC | USA | Illinois | ||
Aon Hewitt Financial Advisors, LLC | USA | Delaware | ||
Aon Hewitt Health Market Insurance Solutions Inc. | USA | California | ||
Aon Hewitt Intermediaries, Inc. | USA | Delaware | ||
Aon Hewitt Investment Consulting, Inc. | USA | Illinois | ||
Aon Hewitt LLC | USA | Delaware | ||
Aon Human Capital Services, LLC | USA | Delaware | ||
Aon Insurance Management Services - Virgin Islands, Inc. | USA | US Virgin Islands | ||
Aon Insurance Managers (Puerto Rico) Inc. | USA | Puerto Rico | ||
Aon Insurance Managers (USA) Inc. | USA | Vermont | ||
Aon Insurance Managers (USVI), Inc. | USA | US Virgin Islands | ||
Aon International Energy, Inc. | USA | Texas | ||
Aon International Holdings, Inc. | USA | Maryland | ||
Aon Life Agency of Texas, Inc. | USA | Texas | ||
Aon Life Insurance Company | USA | Vermont | ||
Aon Mexico Holdings, LLC | USA | Delaware | ||
Aon National Flood Services, Inc. | USA | Delaware | ||
Aon NFS Holdings, Inc. | USA | Delaware | ||
Aon PHI Acquisition Corporation of California | USA | California | ||
Aon Premium Finance, LLC | USA | Delaware | ||
Aon Private Risk Management Insurance Agency, Inc. | USA | Illinois | ||
Aon Private Risk Management of California Insurance Agency, Inc. | USA | California |
Jurisdiction of Incorporation or Organization | ||||
Name | Country | State/Province | ||
Aon Property Risk Consulting, Inc. | USA | New York | ||
Aon Realty Services, Inc. | USA | Pennsylvania | ||
Aon Recovery, Inc. | USA | Delaware | ||
Aon Retirement Plan Advisors, LLC | USA | Delaware | ||
Aon Risk Consultants, Inc. | USA | Illinois | ||
Aon Risk Insurance Services West, Inc. | USA | California | ||
Aon Risk Services (Holdings) of Latin America, Inc. | USA | Delaware | ||
Aon Risk Services (Holdings) of the Americas, Inc. | USA | Illinois | ||
Aon Risk Services Central, Inc. | USA | Illinois | ||
Aon Risk Services Companies, Inc. | USA | Maryland | ||
Aon Risk Services International (Holdings) Inc. | USA | Delaware | ||
Aon Risk Services Northeast, Inc. | USA | New York | ||
Aon Risk Services South, Inc. | USA | North Carolina | ||
Aon Risk Services Southwest, Inc. | USA | Texas | ||
Aon Risk Services, Inc. of Florida | USA | Florida | ||
Aon Risk Services, Inc. of Hawaii | USA | Hawaii | ||
Aon Risk Services, Inc. of Maryland | USA | Maryland | ||
Aon Risk Services, Inc. of Washington, D.C. | USA | District of Columbia | ||
Aon Risk Solutions of Puerto Rico, Inc. | USA | Puerto Rico | ||
Aon Risk Technologies, Inc. | USA | Delaware | ||
Aon Securities Inc. | USA | New York | ||
Aon Service Corporation | USA | Illinois | ||
Aon Services Group, Inc. | USA | Delaware | ||
Aon Special Risk Resources, Inc. | USA | Delaware | ||
Aon Trust Company | USA | Illinois | ||
Aon Underwriting Managers, Inc. | USA | Delaware | ||
Aon US Holdings 2, Inc. | USA | Delaware | ||
Aon US Holdings, Inc. | USA | Delaware | ||
Aon Ward Financial Corporation | USA | Ohio | ||
Aon/Albert G. Ruben Insurance Services, Inc. | USA | California | ||
ARM International Corp. | USA | New York | ||
ARM International Insurance Agency Corp. | USA | Ohio | ||
ARMRISK CORP. | USA | New Jersey | ||
ASPN Insurance Agency, LLC | USA | Delaware | ||
Association of Rural and Small Town Americans | USA | Missouri | ||
Assurance Licensing Services, Inc. | USA | Illinois | ||
Atlantic Star Administrators LLC | USA | Delaware | ||
Atlantic Star Intermediaries, LLC | USA | Delaware | ||
B E P International Corp. | USA | New Jersey | ||
Benefit Marketing Solutions, L.L.C. | USA | Oklahoma | ||
Benfield Advisory Inc. | USA | Delaware | ||
Benfield Finance (London) LLC | USA | Delaware | ||
Benfield Finance (Westport) LLC | USA | Delaware | ||
Blanch Americas Inc. | USA | Delaware | ||
BMS Insurance Agency, L.L.C. | USA | Oklahoma | ||
Bowes & Company, Inc., of New York | USA | New York | ||
Cammack Health LLC | USA | New York | ||
Cananwill Corporation | USA | Delaware |
Jurisdiction of Incorporation or Organization | ||||
Name | Country | State/Province | ||
Cananwill, Inc. | USA | California | ||
Cananwill, Inc. | USA | Pennsylvania | ||
CICA SPE, LLC | USA | Delaware | ||
Citadel Insurance Managers, Inc. | USA | California | ||
Coalition for Benefits Equality and Choice | USA | California | ||
Corporate Investigative Solutions, Inc. | USA | New Jersey | ||
Crawley, Warren (U.S.A.) Inc. | USA | Massachusetts | ||
Custom Benefit Programs, Inc. | USA | New Jersey | ||
E.W. Blanch Capital Risk Solutions, Inc. | USA | Delaware | ||
E.W. Blanch Insurance Services Inc. | USA | Delaware | ||
E.W. Blanch International Inc. | USA | Delaware | ||
Elysium Digital IP Products, LLC | USA | Delaware | ||
Elysium Digital, L.L.C. | USA | Delaware | ||
Ennis Knupp Secondary Market Services, LLC | USA | Delaware | ||
Financial & Professional Risk Solutions, Inc. | USA | Illinois | ||
Futurity Group, Inc. | USA | Nevada | ||
Gateway Alternatives, L.L.C. | USA | Delaware | ||
Global Insurance Strategies, LLC | USA | Delaware | ||
Gotham Digital Science, LLC | USA | Delaware | ||
Grant Park Capital, LLC | USA | Delaware | ||
Healthy Paws Pet Insurance LLC | USA | Washington | ||
Hewitt Associates Caribe, Inc. | USA | Puerto Rico | ||
Hewitt Associates LLC | USA | Illinois | ||
Hewitt Associates International Services, Inc. | USA | Delaware | ||
Hewitt Associates Public Sector Consulting LLC | USA | Illinois | ||
Hewitt Financial Services LLC | USA | Illinois | ||
Hewitt Insurance Brokerage LLC | USA | Delaware | ||
Hewitt Insurance, Inc. | USA | Puerto Rico | ||
Hewitt International Holdings LLC | USA | Delaware | ||
Hogg Robinson North America, Inc. | USA | Delaware | ||
Holdco #1, Inc. | USA | Delaware | ||
Holdco #2, Inc. | USA | Delaware | ||
Huntington T. Block Insurance Agency, Inc. | USA | District of Columbia | ||
Impact Forecasting, L.L.C. | USA | Illinois | ||
INPOINT, INC. | USA | Illinois | ||
International Accident Facilities, Inc. | USA | Massachusetts | ||
International Claims Administrators, Inc. | USA | Kansas | ||
International Risk Management (Americas), Inc. | USA | Ohio | ||
International Space Brokers, Inc. | USA | Virginia | ||
IRM/GRC Holding Inc. | USA | Delaware | ||
J H Minet Puerto Rico Inc. | USA | Puerto Rico | ||
Johnson Rooney Welch, Inc. | USA | California | ||
K & K Insurance Group of Florida, Inc. | USA | Florida | ||
K & K Insurance Group, Inc. | USA | Indiana | ||
K2 Technologies Inc. | USA | California | ||
Lightbox Technologies, Inc. | USA | Delaware | ||
McLagan Partners Asia, Inc. | USA | Delaware | ||
McLagan Partners, Inc. | USA | Delaware |
Jurisdiction of Incorporation or Organization | ||||
Name | Country | State/Province | ||
Membership Leasing Trust | USA | Delaware | ||
Minet Holdings Inc. | USA | New York | ||
Minet Re North America, Inc. | USA | Georgia | ||
Modern Survey, Inc. | USA | Minnesota | ||
Muirfield Underwriters, Ltd. | USA | Delaware | ||
NFS Edge Insurance Agency, Inc. | USA | Florida | ||
Paragon Strategic Solutions Inc. | USA | Delaware | ||
Premier Auto Finance, Inc. | USA | Delaware | ||
Private Equity Partnership Structures I, LLC | USA | Delaware | ||
Project Technologies International L.L.C. | USA | Delaware | ||
Protective Marketing Enterprises, Inc. | USA | Tennessee | ||
Redwoods Dental Underwriters, Inc. | USA | North Carolina | ||
Rewards Plus of America Corporation | USA | Maryland | ||
SINSER Management Services (Vermont), Inc. | USA | Vermont | ||
Specialty Benefits, Inc. | USA | Indiana | ||
Stroz Friedberg Electronic Discovery, Inc. | USA | New York | ||
Stroz Friedberg Inc. | USA | Delaware | ||
Stroz Friedberg, LLC | USA | New York | ||
T.J.E. Management, LLC | USA | Minnesota | ||
The Capella Group, Inc. | USA | Texas | ||
Underwriters Marine Services, Inc. | USA | Louisiana | ||
VSC SPE, LLC | USA | Delaware | ||
Ward Financial Group, Inc. | USA | Ohio | ||
Wexford Underwriting Managers, Inc. | USA | Delaware | ||
White Rock USA Ltd. | USA | Vermont | ||
William Gallagher Associates of New Jersey, Inc. | USA | New Jersey | ||
Worldwide Integrated Services Company | USA | Texas | ||
Wrapid Specialty, Inc. | USA | California | ||
WT Government Services, LLC | USA | Delaware | ||
WT Technologies, LLC | USA | Delaware | ||
Aon (Vanuatu) Ltd. | Vanuatu | |||
Administradora Aon, C.A. | Venezuela | |||
Aon Group Venezuela, Corretaje de Reaseguros, C.A. | Venezuela | |||
Aon Risk Services Venezuela, Corretaje de Seguros C.A. | Venezuela | |||
Aon Vietnam Limited | Vietnam | |||
Aon Zambia Limited | Zambia | |||
Aon Zambia Pension Fund Administrators Limited | Zambia |
Registration Statement | ||||
Form | Number | Purpose | ||
S-8 | 333-55773 | Pertaining to Aon's stock award plan, stock option plan, and employee stock purchase plan | ||
S-4 | 333-168320 | Pertaining to the registration of 4,545,566 shares of common stock registered on Post Effective Amendment No. 1 related to the Amended and Restated Global Stock and Incentive Compensation Plan of Hewitt Associates, Inc. | ||
S-8 | 333-103344 | Pertaining to the Aon Stock Incentive Plan | ||
S-8 | 333-106584 | Pertaining to Aon's deferred compensation plan | ||
S-8 | 333-145928 | Pertaining to the Aon Stock Incentive Plan | ||
S-8 | 333-145930 | Pertaining to the registration of common stock underlying equity securities issued to Aon's president and chief executive officer | ||
S-8 | 333-174788 | Pertaining to Aon's 2011 stock incentive plan and 2011 employee stock purchase plan | ||
S-8 | 333-178906 | Pertaining to Aon's savings plan | ||
S-4 | 333-178991 | Pertaining to the registration of 355,110,708 Class A Ordinary Shares of Aon Global Limited, and in the related Proxy Statement / Prospectus of Aon Global and Aon Corporation contained therein | ||
S-8 | 333-184999 | Pertaining to Aon plc Company Share Save Plan | ||
S-8 | 333-199759 | Pertaining to the registration of an additional 9,000,000 Class A Ordinary Shares to be issued pursuant to the Aon plc 2011 Incentive Plan | ||
S-3 | 333-206759 | Pertaining to the registration of debt securities, guarantees, preference shares, Class A Ordinary Shares, Convertible Securities, share purchase contracts and share purchase units of Aon plc and debt securities and guarantees of Aon Corporation | ||
1. | I have reviewed this annual report on Form 10-K of Aon plc; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ GREGORY C. CASE | |||
Date: | February 23, 2017 | Gregory C. Case Chief Executive Officer |
1. | I have reviewed this annual report on Form 10-K of Aon plc; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ CHRISTA DAVIES | |||
Date: | February 23, 2017 | Christa Davies Chief Financial Officer |
/s/ GREGORY C. CASE | ||
Gregory C. Case Chief Executive Officer | ||
February 23, 2017 |
/s/ CHRISTA DAVIES | ||
Christa Davies Chief Financial Officer | ||
February 23, 2017 |
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Document and Entity Information - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Feb. 22, 2017 |
Jun. 30, 2016 |
|
Document and Entity Information | |||
Entity Registrant Name | Aon plc | ||
Entity Central Index Key | 0000315293 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 262,600,762 | ||
Document Fiscal Year Focus | 2016 | ||
Document Fiscal Period Focus | FY | ||
Entity Public Float | $ 29,031,404,998 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Jun. 30, 2016 |
Sep. 30, 2016 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Statement of Comprehensive Income [Abstract] | |||||||||||||
Net income | $ 459 | $ 326 | $ 308 | $ 337 | $ 540 | $ 311 | $ 214 | $ 357 | $ 645 | $ 971 | $ 1,430 | $ 1,422 | $ 1,431 |
Less: Net income attributable to noncontrolling interests | 7 | 7 | 8 | 12 | 6 | 8 | 10 | 13 | 34 | 37 | 34 | ||
Net income attributable to Aon shareholders | $ 452 | $ 319 | $ 300 | $ 325 | $ 534 | $ 303 | $ 204 | $ 344 | 1,396 | 1,385 | 1,397 | ||
Other comprehensive (loss) income, net of tax: | |||||||||||||
Change in fair value of financial instruments | (12) | (8) | 4 | ||||||||||
Foreign currency translation adjustments | (495) | (442) | (507) | ||||||||||
Post-retirement benefit obligation | 16 | 155 | (260) | ||||||||||
Total other comprehensive loss | (491) | (295) | (763) | ||||||||||
Less: Other comprehensive loss attributable to noncontrolling interests | (2) | (6) | (3) | ||||||||||
Total other comprehensive loss attributable to Aon shareholders | (489) | (289) | (760) | ||||||||||
Comprehensive income attributable to Aon shareholders | $ 907 | $ 1,096 | $ 637 |
Consolidated Statements of Financial Position (Parenthetical) - $ / shares |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Ordinary shares, nominal or par value | $ 0.01 | $ 0.01 |
Ordinary shares, Authorized shares | 750,000,000 | 750,000,000 |
Ordinary shares, issued shares | 262,000,000 | 269,800,000 |
Basis of Presentation |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation | Basis of Presentation The accompanying Consolidated Financial Statements and Notes thereto have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). The Consolidated Financial Statements include the accounts of Aon plc and all of its controlled subsidiaries (“Aon” or the “Company”). All intercompany accounts and transactions have been eliminated. The Consolidated Financial Statements include, in the opinion of management, all adjustments necessary to present fairly the Company’s consolidated financial position, results of operations and cash flows for all periods presented. Revision of Previously Issued Financial Statements During the fourth quarter of 2016, the Company identified errors related to the recognition of revenue for certain brokerage fee arrangements, specifically the consideration for certain arrangements covering multiple insurance placements was not appropriately allocated to each individual placement. Based on an analysis of quantitative and qualitative factors in accordance with SEC Staff Accounting Bulletins 99 and 108, the Company concluded that these errors were immaterial, individually and in the aggregate, to the Consolidated Statements of Financial Position, Consolidated Statements of Income, or Consolidated Statements of Cash Flows as presented in the Company’s quarterly and annual financial statements previously filed in the Company’s Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K. While Aon concluded that the errors were immaterial to each of the prior reporting periods affected, the Company further concluded that correcting the errors cumulatively in fiscal year 2016 would materially misstate the Consolidated Statement of Income for the year ended December 31, 2016. As a result, amendment of such reports is not required. In preparing the Company’s Consolidated Financial Statements for the year ended December 31, 2016, the Company made appropriate revisions to its financial statements for historical periods. Such changes are reflected for the years ended December 31, 2015 and 2014, included in these financial statements, and will also be reflected in the historical periods included in the Company’s subsequent quarterly and annual consolidated financial statements. The impact to the Consolidated Statements of Financial Position was a decrease of $170 million to Receivables, net, an increase of $66 million to Deferred tax assets, and a decrease of $104 million to Retained earnings in all periods presented. The impact to the full year Consolidated Statements of Income and Consolidated Statements of Comprehensive Income was de minimis in all periods presented. and therefore remains unchanged. There was no impact to the full year cash provided by operating activities in the Consolidated Statements of Cash Flows. The impact to the Consolidated Statements of Cash Flows previously filed in unaudited Quarterly Reports on Form 10-Q is as follows (in millions):
Refer to Note 17 “Quarterly Financial Data” for the impact to the Company’s Condensed Consolidated Statements of Income previously filed in Quarterly Reports on Form 10-Q. Reclassification Certain amounts in prior years’ Consolidated Financial Statements and related notes have been reclassified to conform to the 2016 presentation. In prior periods, cash outflows from Restructuring activities were shown as a separate line item within Cash Flows From Operating Activities in the Consolidated Statements of Cash Flows. Beginning in 2016, these amounts are disclosed as a component of the change in Other assets and liabilities within Cash Flows From Operating Activities in the Consolidated Statements of Cash Flows. Cash outflows for Restructuring reserves were $31 million at December 31, 2015 and $83 million at December 31, 2014. Use of Estimates The preparation of the accompanying Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of reserves and expenses. These estimates and assumptions are based on management’s best estimates and judgments. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment. Management believes its estimates to be reasonable given the current facts available. Aon adjusts such estimates and assumptions when facts and circumstances dictate. Illiquid credit markets, volatile equity markets, and foreign currency exchange rate movements increase the uncertainty inherent in such estimates and assumptions. As future events and their effects cannot be determined, among other factors, with precision, actual results could differ significantly from these estimates. Changes in estimates resulting from continuing changes in the economic environment would, if applicable, be reflected in the financial statements in future periods. |
Summary of Significant Accounting Principles and Practices |
12 Months Ended | |||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | ||||||||||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||||||||||
Summary of Significant Accounting Principles and Practices | Summary of Significant Accounting Principles and Practices Revenue Recognition Risk Solutions segment revenues primarily include insurance commissions and fees for services rendered and investment income on funds held on behalf of clients. Revenues are recognized when they are earned and realized or realizable. The Company considers revenues to be earned and realized or realizable when all of the following four conditions are met: (1) persuasive evidence of an arrangement exists, (2) the arrangement fee is fixed or determinable, (3) delivery or performance has occurred, and (4) collectability is reasonably assured. For brokerage commissions, revenue is typically recognized at the completion of the placement process, assuming all four criteria required to recognize revenue have been met. The placement process is typically considered complete on the effective date of the related policy. Commission revenues are recorded net of allowances for estimated policy cancellations, which are determined based on an evaluation of historical and current cancellation data. HR Solutions segment revenues consist primarily of fees paid by clients for consulting advice and outsourcing contracts. Fees paid by clients for consulting services are typically charged on an hourly, project or fixed-fee basis. Revenues from time-and-materials or cost-plus arrangements are recognized as services are performed, assuming all four criteria to recognize revenue have been met. Revenues from fixed-fee contracts are recognized as services are provided using a proportional-performance model or at the completion of a project based on facts and circumstances of the client arrangement. Revenues from health care exchange arrangements are typically recognized upon successful enrollment of participants, net of a reserve for estimated cancellations, assuming all four criteria to recognize revenue have been met. Reimbursements received for out-of-pocket expenses are recorded as a component of revenues. The Company’s outsourcing contracts typically have three-to-five year terms for both benefits services and human resources business process outsourcing (“HR BPO”) services. The Company recognizes revenues as services are performed, assuming all criteria to recognize revenue have been met. The Company may also receive implementation fees from clients either up-front or over the ongoing services period as a component of the fee per participant. Lump sum implementation fees received from a client are typically deferred and recognized ratably over the ongoing contract service period. If a client terminates an outsourcing service arrangement prior to the end of the contract, a loss on the contract may be recorded, if necessary, and any remaining deferred implementation revenues would typically be recognized over the remaining service period through the termination date. In connection with the Company’s long-term outsourcing service agreements, highly customized implementation efforts are often necessary to set up clients and their human resource or benefit programs on the Company’s systems and operating processes. Qualifying costs of implementation incurred prior to the services commencing are generally deferred and amortized over the period that the related ongoing services revenue is recognized. Deferred costs are assessed for recoverability on a periodic basis to the extent the deferred cost exceeds related deferred revenue. Share-Based Compensation Costs Share-based payments to employees, including grants of restricted share units and performance share awards, are measured based on estimated grant date fair value. The Company recognizes compensation expense over the requisite service period for awards expected to ultimately vest. Forfeitures are estimated on the date of grant and revised if actual or expected forfeiture activity differs materially from original estimates. Pension and Other Post-Retirement Benefits The Company records net period cost relating to its pension and other post-retirement benefit plans based on calculations that include various actuarial assumptions, including discount rates, assumed rates of return on plan assets, inflation rates, mortality rates, compensation increases, and turnover rates. The Company reviews its actuarial assumptions on an annual basis and modifies these assumptions based on current rates and trends. The effects of gains, losses, and prior service costs and credits are amortized over future service periods or future estimated lives if the plans are frozen. The funded status of each plan, calculated as the fair value of plan assets less the benefit obligation, is reflected in the Company’s Consolidated Statements of Financial Position using a December 31 measurement date. Net Income per Share Basic net income per share is computed by dividing net income available to ordinary shareholders by the weighted-average number of ordinary shares outstanding, including participating securities, which consist of unvested share awards with non-forfeitable rights to dividends. Diluted net income per share is computed by dividing net income available to ordinary shareholders by the weighted-average number of ordinary shares outstanding, which have been adjusted for the dilutive effect of potentially issuable ordinary shares (excluding those that are considered participating securities), including certain contingently issuable shares. The diluted earnings per share calculation reflects the more dilutive effect of either (1) the two-class method that assumes that the participating securities have not been exercised, or (2) the treasury stock method. Potentially issuable shares are not included in the computation of diluted income per share if their inclusion would be antidilutive. Cash and Cash Equivalents and Short-term Investments Cash and cash equivalents include cash balances and all highly liquid investments with initial maturities of three months or less. Short-term investments consist of money market funds. The estimated fair value of cash and cash equivalents and short-term investments approximates their carrying values. At December 31, 2016, Cash and cash equivalents and Short-term investments totaled $721 million compared to $740 million at December 31, 2015. Of the total balance, $82 million and $105 million was restricted as to its use at December 31, 2016 and 2015, respectively. Included within the December 31, 2016 and 2015 balances, respectively, were £43.3 million ($53.2 million at December 31, 2016 exchanges rates) and £43.3 million ($64.6 million at December 31, 2015 exchange rates) of operating funds required to be held by the Company in the U.K. by the Financial Conduct Authority, a U.K.-based regulator, which were included in Short-term investments. In addition, Cash and cash equivalents included restricted balances of $29 million and $40 million at December 31, 2016 and 2015, respectively. Fiduciary Assets and Liabilities In its capacity as an insurance agent and broker, Aon collects premiums from insureds and, after deducting its commission, remits the premiums to the respective insurers. Aon also collects claims or refunds from insurers on behalf of insureds. Uncollected premiums from insureds and uncollected claims or refunds from insurers are recorded as Fiduciary assets in the Company’s Consolidated Statements of Financial Position. Unremitted insurance premiums and claims are held in a fiduciary capacity and the obligation to remit these funds is recorded as Fiduciary liabilities in the Company’s Consolidated Statements of Financial Position. Some of the Company’s outsourcing agreements also require it to hold funds to pay certain obligations on behalf of clients. These funds are also recorded as Fiduciary assets with the related obligation recorded as Fiduciary liabilities in the Company’s Consolidated Statements of Financial Position. Aon maintained premium trust balances for premiums collected from insureds but not yet remitted to insurance companies of $3.8 billion and $3.4 billion at December 31, 2016 and 2015, respectively. These funds and a corresponding liability are included in Fiduciary assets and Fiduciary liabilities, respectively, in the accompanying Consolidated Statements of Financial Position. Allowance for Doubtful Accounts The Company’s allowance for doubtful accounts with respect to receivables is based on a combination of factors, including evaluation of historical write-offs, aging of balances, and other qualitative and quantitative analyses. Receivables, net included an allowance for doubtful accounts of $58 million at both December 31, 2016 and 2015. Fixed Assets Fixed assets are stated at cost, less accumulated depreciation. Included in this category is internal use software, which is software that is acquired, internally developed or modified solely to meet internal needs, with no plan to market externally. Costs related to directly obtaining, developing or upgrading internal use software are capitalized. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets, which are generally as follows:
Goodwill and Intangible Assets Goodwill represents the excess of acquisition cost over the fair value of the net assets in the acquisition of a business. Goodwill is allocated to various reporting units, which are one reporting level below the operating segment. Upon disposition of a business entity, goodwill is allocated to the disposed entity based on the fair value of that entity compared to the fair value of the reporting unit in which it was included. Goodwill is not amortized, but instead is tested for impairment at least annually. The goodwill impairment test is performed at the reporting unit level. The Company initially performs a qualitative analysis to determine if it is more likely than not that the goodwill balance is impaired. If such a determination is made, then the Company will perform a two-step quantitative analysis. First, the fair value of each reporting unit is compared to its carrying value. If the fair value of the reporting unit is less than its carrying value, the Company performs a hypothetical purchase price allocation based on the reporting unit’s fair value to determine the fair value of the reporting unit’s goodwill. Any resulting difference will be a charge to Other general expenses in the Consolidated Statements of Income in the period in which the determination is made. Fair value is determined using a combination of present value techniques and market prices of comparable businesses. Intangible assets are primarily comprised of tradenames and customer-related, contract-based, and technology assets. Tradenames are not amortized when such assets have been determined to have indefinite useful lives, and are tested at least annually for impairments using an analysis of expected future cash flows. Interim impairment testing may be performed when events or changes in circumstances indicate that the carrying amount of the intangible asset may not be recoverable. Customer related and contract based assets are amortized over periods ranging from 1 to 16 years, with a weighted average original life of 11 years. Technology assets are typically amortized over 7 years. Derivatives Derivative instruments are recognized in the Consolidated Statements of Financial Position at fair value. Where the Company has entered into master netting agreements with counterparties, the derivative positions are netted by counterparty and are reported accordingly in other assets or other liabilities. Changes in the fair value of derivative instruments are recognized in earnings each period, unless the derivative is designated and qualifies as a cash flow or net investment hedge. The Company has historically designated the following hedging relationships for certain transactions: (i) a hedge of the change in fair value of a recognized asset or liability or firm commitment (“fair value hedge”), (ii) a hedge of the variability in cash flows from a recognized variable-rate asset or liability or forecasted transaction (“cash flow hedge”), and (iii) a hedge of the net investment in a foreign operation (“net investment hedge”). In order for a derivative to qualify for hedge accounting, the derivative must be formally designated as a fair value, cash flow, or a net investment hedge by documenting the relationship between the derivative and the hedged item. The documentation must include a description of the hedging instrument, the hedged item, the risk being hedged, Aon’s risk management objective and strategy for undertaking the hedge, the method for assessing the effectiveness of the hedge, and the method for measuring hedge ineffectiveness. Additionally, the hedge relationship must be expected to be highly effective at offsetting changes in either the fair value or cash flows of the hedged item at both the inception of the hedge and on an ongoing basis. Aon assesses the ongoing effectiveness of its hedges and measures and records hedge ineffectiveness, if any, at the end of each quarter or more frequently if facts and circumstances require. For a derivative designated as a hedging instrument, the changes in the fair value of a recognized asset or liability or a firm commitment (a fair value hedge), the gain or loss is recognized in earnings in the period of change together with the offsetting loss or gain on the hedged item attributable to the risk being hedged. The effect is to reflect in earnings the extent to which the hedge is not effective in achieving offsetting changes in fair value. For a cash flow hedge that qualifies for hedge accounting, the effective portion of the change in fair value of a hedging instrument is recognized in Other Comprehensive Income (“OCI”) and subsequently reclassified to earnings in the same period the hedged item impacts earnings. The ineffective portion of the change in fair value is recognized immediately in earnings. For a net investment hedge, the effective portion of the change in fair value of the hedging instrument is recognized in OCI as part of the cumulative translation adjustment, while the ineffective portion is recognized immediately in earnings. Changes in the fair value of a derivative that is not designated as part of a hedging relationship (commonly referred to as an “economic hedge”) are recorded in Other income in the Consolidated Statements of Income. The Company discontinues hedge accounting prospectively when (1) the derivative expires or is sold, terminated, or exercised, (2) the qualifying criteria are no longer met, or (3) management removes the designation of the hedging relationship. Foreign Currency Certain of the Company’s non-US operations use their respective local currency as their functional currency. These operations that do not have the U.S. dollar as their functional currency translate their financial statements at the current rates of exchange in effect at the balance sheet date and revenues and expenses using rates that approximate those in effect during the period. The resulting translation adjustments are included in net foreign currency translation adjustments within the Consolidated Statements of Shareholders’ Equity. Gains and losses from the remeasurement of monetary assets and liabilities that are denominated in a non-functional currency are included in Other income within the Consolidated Statements of Income. The effect of foreign exchange gains and losses on the Consolidated Statements of Income were losses of $9 million, $11 million, and $1 million in 2016, 2015, and 2014, respectively. Included in these amounts were hedging losses of $7 million in 2016 and hedging losses of $19 million in both 2015 and 2014. Income Taxes Deferred income taxes are recognized for the effect of temporary differences between financial reporting and tax basis of assets and liabilities and are measured using the enacted marginal tax rates and laws that are currently in effect. The effect on deferred tax assets and liabilities from a change in tax rates is recognized in the period when the rate change is enacted. Deferred tax assets are reduced by valuation allowances if, based on the consideration of all available evidence, it is more likely than not that some portion of the deferred tax asset will not be realized. Significant weight is given to evidence that can be objectively verified. Deferred tax assets are realized by having sufficient future taxable income to allow the related tax benefits to reduce taxes otherwise payable. The sources of taxable income that may be available to realize the benefit of deferred tax assets are future reversals of existing taxable temporary differences, future taxable income exclusive of reversing temporary differences and carry-forwards, taxable income in carry-back years and tax planning strategies that are both prudent and feasible. The Company recognizes the effect of income tax positions only if sustaining those positions is more likely than not. Tax positions that meet the more likely than not recognition threshold but are not highly certain are initially and subsequently measured based on the largest amount of benefit that is greater than 50% likely of being realized upon settlement with the taxing authority. Only information that is available at the reporting date is considered in the Company’s recognition and measurement analysis, and events or changes in facts and circumstances are accounted for in the period in which the event or change in circumstance occurs. The Company records penalties and interest related to unrecognized tax benefits in Income taxes in the Company’s Consolidated Statements of Income. New Accounting Pronouncements Income Tax Consequences of Intercompany Transactions In October 2016, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance on the income tax consequences of intra-entity asset transfers other than inventory. The guidance will require that the seller and buyer recognize the consolidated current and deferred income tax consequences of a transaction in the period the transaction occurs rather than deferring to a future period and recognizing those consequences when the asset has been sold to an outside party or otherwise recovered through use (i.e. depreciated, amortized, impaired). An entity will apply the new guidance on a modified retrospective basis with a cumulative effect adjustment to retained earnings as of the beginning of the period of adoption. The new guidance is effective for Aon in the first quarter of 2018, and the Company is currently evaluating the impact that the standard will have on its Consolidated Financial Statements. Statement of Cash Flows In August 2016, the FASB issued new accounting guidance on the classification of certain cash receipts and cash payments. Under the new guidance, an entity will no longer have discretion to choose the classification for a number of transactions, including contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, and distributions received from equity method investees. The new standard will be effective for the Company in the first quarter of 2018, with early application permitted. An entity will apply the new guidance through retrospective adjustment to all periods presented. The retrospective approach includes a practical expedient that entities may apply should retrospective application be impracticable; in this case, the amendments for these issues may be applied prospectively as of the earliest date practicable. The guidance will not have a material impact upon the Company’s Consolidated Statement of Cash Flows. Credit Losses In June 2016, the FASB issued new accounting guidance on the measurement of credit losses on financial instruments. The new guidance replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. An entity will apply the new guidance through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The guidance is effective for Aon in the first quarter of 2020 and early adoption is permitted beginning in the first quarter of 2019. Aon is currently evaluating the impact that the standard will have on its Consolidated Financial Statements, as well as the method of transition and period of adoption. Share-based Compensation In March 2016, the FASB issued new accounting guidance on several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The new guidance requires all excess tax benefits and tax deficiencies to be recognized as income tax expense or benefit in the income statement and treated as discrete items in the reporting period. Further, excess tax benefits are required to be classified along with other income tax cash flows as an operating activity. Amendments related to the timing of when excess tax benefits are recognized, minimum statutory withholding requirements, forfeitures, and intrinsic value should be applied using a modified retrospective transition method by means of a cumulative-effect adjustment to equity as of the beginning of the period in which the guidance is adopted. Amendments related to the presentation of employee taxes paid on the statement of cash flows when an employer withholds shares to meet the minimum statutory withholding requirement should be applied retrospectively. Amendments requiring recognition of excess tax benefits and tax deficiencies in the income statement and the practical expedient for estimating expected term should be applied prospectively. An entity may elect to apply the amendments related to the presentation of excess tax benefits on the statement of cash flows using either a prospective transition method or a retrospective transition method. The guidance is effective for Aon in the first quarter of 2017 and early adoption is permitted. Upon the adoption of this guidance on January 1, 2017, the Company expects to recognize an increase to Deferred tax assets of approximately $49 million through a cumulative-effect adjustment to Retained earnings for excess tax benefits not previously recognized. On a prospective basis, excess tax benefits will be recognized in the Consolidated Statements of Income each quarter as share-based payment awards vest, which could have a significant impact on Income tax expense in the Consolidated Statement of Income and Additional paid-in capital in the Consolidated Statements of Financial Position. The impact will be driven, in part, by the difference between the Company’s share price at the time share-based payment transactions vest or options are exercised in the future periods and the fair value of the awards at the date of grant. Amendments related to the presentation of excess tax benefits on the Consolidated Statement of Cash Flows, which will be applied prospectively, may have a significant impact on Cash Flows from Operating Activities and Cash Flows from Financing Activities in the Consolidated Statements of Cash Flows. The impact will also be driven by the Company’s share price at the time share-based payment transactions vest in future periods. The Company does not expect other elements of the guidance to have a material impact on its Consolidated Financial Statements. Leases In February 2016, the FASB issued new accounting guidance on leases, which requires lessees to recognize assets and liabilities for most leases. Under the new guidance, a lessee should recognize in the Consolidated Statement of Financial Position a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee have not significantly changed from currently effective U.S. GAAP. The new standard will be effective for the Company in the first quarter of 2019, with early application permitted. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply. These practical expedients relate to the identification and classification of leases that commenced before the effective date, initial direct costs for leases that commenced before the effective date, and the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset. Aon is currently evaluating the impact the standard will have on its Consolidated Financial Statements, as well as the method of transition and period of adoption. Financial Assets and Liabilities In January 2016, the FASB issued new accounting guidance on recognition and measurement of financial assets and financial liabilities. The amendments in the new guidance make targeted improvements, which include the requirement to measure equity investments with readily determinable fair values at fair value through net income, simplification of the impairment assessment for equity investments without readily determinable fair values, adjustments to existing and additional disclosure requirements, and additional tax considerations. An entity should apply the amendments by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values (including disclosure requirements) should be applied prospectively to equity investments that exist as of the date of adoption of the guidance. The guidance is effective for the Company in the first quarter of 2018 and early adoption is permitted. Aon is currently evaluating the impact that the standard will have on the its Consolidated Financial Statements, as well as the method of transition and period of adoption. Presentation of Deferred Taxes In November 2015, the FASB issued new accounting guidance on the balance sheet presentation of deferred taxes, which requires that deferred tax liabilities and assets be classified as non-current. Aon early adopted this guidance in the second quarter of 2016 and retrospectively applied its requirements to all periods presented. For the year ended December 31, 2015, Aon reclassified its current deferred tax positions to non-current and netted the new balances by jurisdiction, which increased Deferred tax assets by $93 million and decreased Deferred tax liabilities by $139 million on the Consolidated Statement of Financial Position. Debt Issuance Costs In April 2015, the FASB issued new accounting guidance on the presentation of debt issuance costs, which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the associated debt liability. Debt issuance costs related to its line-of-credit arrangements will be shown within Other non-current assets. This guidance was effective for Aon in the first quarter of 2016, which required retrospective application to prior year comparable periods. For the year ended December 31, 2015, Aon reclassified $4 million from Other current assets and $33 million from Other non-current assets to Long-term debt on the Consolidated Statement of Financial Position. Consolidations In February 2015, the FASB issued new accounting guidance on consolidations, which will eliminate the deferral granted to investment companies from applying the variable interest entities guidance and make targeted amendments to the current consolidation guidance. The new guidance applies to all entities involved with limited partnerships or similar entities and requires re-evaluation of these entities under the revised guidance, which could change previous consolidation conclusions. The guidance was effective for the Company in the first quarter of 2016. The adoption of this guidance did not have a material impact on the Company’s Consolidated Financial Statements. Revenue Recognition In May 2014, the FASB issued new accounting guidance on revenue from contracts with customers, which, when effective, will supersede nearly all existing revenue recognition guidance under U.S. GAAP. The core principal of the standard is that an entity should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The standard is effective for Aon in the first quarter of 2018 and early adoption is permitted beginning the first quarter of 2017. Two methods of transition are permitted upon adoption: full retrospective and modified retrospective. Under the full retrospective method, prior periods would be restated under the new revenue standard, providing a comparable view across all periods presented. Under the modified retrospective method, prior periods would not be restated. Rather, revenues and other disclosures for pre-2018 periods would be provided in the notes to the financial statements as previously reported under the current revenue standard. The Company will adopt this standard in the first quarter of 2018 and is evaluating both methods of transition; however, it is currently anticipated that a modified retrospective adoption approach will be used. A preliminary assessment to determine the impacts of the new accounting standard has been performed. The Company is currently implementing accounting and operational processes which will be impacted by the new standard, but is unable to provide information on quantitative impacts at this time. However, the primary impacts of the new standard to the Company’s product and service lines are anticipated to be as follows: The Company currently recognizes revenue for certain brokerage activities within the Risk Solutions business over a period of time either due to the transfer of value to customers or as the remuneration becomes determinable. Under the new standard, this revenue will be recognized on the effective date of the associated policies when control of the policy transfers to the customer. As a result, revenue from these arrangements will be recognized in earlier periods under the new standard in comparison to the current guidance and will change the timing and amount of revenue recognized for annual and interim periods. Similarly, the Company is currently assessing the timing and measurement of revenue recognition under the new standard for outsourcing and consulting operations within the HR Solutions business. Additionally, the new standard provides guidance on accounting for certain revenue-related costs including when to capitalize costs associated with obtaining and fulfilling a contract. These costs are currently expensed as incurred under existing U.S. GAAP. These assets recognized for the costs to obtain and/or fulfill a contract will be amortized on a on a systematic basis that is consistent with the transfer of the services to which the asset relates. The Company is quantifying the nature and amount of costs that would qualify for capitalization and the amount of amortization that will be recognized in each period. |
Other Financial Data |
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Other Financial Data | Other Financial Data Consolidated Statements of Income Information Other Income Other income consists of the following (in millions):
Consolidated Statements of Financial Position Information Allowance for Doubtful Accounts An analysis of the allowance for doubtful accounts is as follows (in millions):
Other Current Assets The components of Other current assets are as follows (in millions):
Fixed Assets, net The components of Fixed assets, net are as follows (in millions):
Depreciation expense, which includes software amortization, was $232 million, $229 million, and $242 million for the years ended December 31, 2016, 2015, and 2014, respectively. Other Non-Current Assets The components of Other non-current assets are as follows (in millions):
Other Current Liabilities The components of Other current liabilities are as follows (in millions):
Other Non-Current Liabilities The components of Other non-current liabilities are as follows (in millions):
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Acquisitions and Dispositions of Businesses |
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Business Combinations and Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions and Dispositions of Businesses | Acquisitions and Dispositions of Businesses Acquisitions The number of acquisitions completed within each reportable segment is as follows:
2016 Acquisitions On January 1, 2016, the Company completed the transaction to acquire Globe Events Management, an insurance, retirement, and investment consulting business company based in Australia. On February 1, 2016, the Company completed the transaction to acquire Modern Survey, an employee survey and talent analytics solutions provider based in Minneapolis. On April 11, 2016, the Company completed the transaction to acquire Nexus Insurance Brokers Limited and Bayfair Insurance Centre Limited, insurance brokerage firms located in New Zealand. On June 1, 2016, the Company completed the transaction to acquire Univers Workplace Solutions, a leading elective benefit enrollment and communication services firm based in New Jersey. On August 19, 2016, the Company completed the transaction to acquire Cammack Health LLC, a leading health and benefits consulting firm that serves large health care organizations in the Eastern region of the U.S., including health plans, health systems and employers. On October 31, 2016, the Company completed the transaction to acquire Stroz, Friedberg, Inc., a leading global cyber risk management firm based in New York City, with offices across the U.S. and in London, Zurich, Dubai and Hong Kong. On November 11, 2016 the Company completed the transaction to acquire CoCubes, a leading hiring assessment company based in India. On December 26, 2016, the Company completed the transaction to acquire Admix, a leading health and benefits brokerage and solutions firm based in Brazil. The following table includes the preliminary fair values of consideration transferred, assets acquired, and liabilities assumed as a result of the Company’s acquisitions (in millions):
Intangible assets are primarily customer-related and contract-based assets; those acquired as part of a business acquisition in 2016 had a weighted average useful economic life of 13 years. Acquisition related costs incurred and recognized within Other general expenses for the year ended December 31, 2016 were $8 million. Total revenue for these acquisitions included in the Company’s Consolidated Statement of Income for the year ended December 31, 2016 was $68 million. The results of operations of these acquisitions are included in the Consolidated Financial Statements as of the acquisition date. The results of operations of the Company would not have been materially different if these acquisitions had been reported from the beginning of the period in which they were acquired. 2015 Acquisitions The following table includes the preliminary fair values of consideration transferred and intangible assets acquired as a result of the Company’s acquisitions (in millions):
The results of operations of these acquisitions are included in the Consolidated Financial Statements as of the acquisition date. The results of operations of the Company would not have been materially different if these acquisitions had been reported from the beginning of the period in which they were acquired. Dispositions The number of dispositions completed within each reportable segment is as follows:
Total pretax gains, net of losses, recognized were $39 million, $82 million, and $24 million, respectively, for the years ended December 31, 2016, 2015, and 2014. Gains and losses recognized as a result of a disposition are included in Other income in the Consolidated Statements of Income. |
Goodwill and Other Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The changes in the net carrying amount of goodwill by reportable segment for the years ended December 31, 2016 and 2015, respectively, are as follows (in millions):
Other intangible assets by asset class are as follows (in millions):
Amortization expense from finite-lived intangible assets was $277 million, $314 million and $352 million during 2016, 2015 and 2014, respectively. The estimated future amortization for finite-lived intangible assets as of December 31, 2016 is as follows (in millions):
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Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt The following is a summary of outstanding debt (in millions):
(1) Amended to reflect the adoption of new guidance related to the presentation of debt issuance costs as described in Note 2 “Summary of Significant Accounting Principles and Practices.” On May 27, 2016, $500 million of 3.125% Senior Notes due May 2016 issued by Aon Corporation matured and were repaid in full. On March 1, 2016, Aon plc issued $750 million of 3.875% Senior Notes due December 2025. The Company used the proceeds of the issuance for general corporate purposes. On November 13, 2015, Aon plc issued $400 million of 2.80% Senior Notes due March 2021. The Company used the proceeds of the issuance for general corporate purposes. On September 30, 2015, $600 million of 3.50% Senior Notes issued by Aon Corporation matured and were repaid in full. On May 20, 2015, Aon plc issued $600 million of 4.750% Senior Notes due May 2045. The Company used the proceeds of the issuance for general corporate purposes. Each of the notes issued by Aon plc and described above is fully and unconditionally guaranteed by Aon Corporation. The 4.76% Senior Notes due March 2018 identified in the table above were issued by a Canadian subsidiary of Aon Corporation and are fully and unconditionally guaranteed by Aon plc and Aon Corporation. Refer to Note 16 “Guarantee of Registered Securities” for additional information regarding guarantees of outstanding debt securities. Each of the notes described above and identified in the table above contains customary representations, warranties and covenants, and the Company was in compliance with all such covenants as of December 31, 2016. Repayments of total debt are as follows (in millions):
Revolving Credit Facilities As of December 31, 2016, Aon plc had two primary committed credit facilities outstanding: its $400 million U.S. credit facility expiring in March 2017 (the “2017 Facility”) and its $900 million multi-currency U.S. credit facility expiring in February 2021 (the “2021 Facility”). The Company plans to let the 2017 facility expire but may evaluate obtaining additional committed credit in the future. Each of these facilities includes customary representations, warranties and covenants, including financial covenants that require Aon plc to maintain specified ratios of adjusted consolidated EBITDA to consolidated interest expense and consolidated debt to adjusted consolidated EBITDA, in each case, tested quarterly. At December 31, 2016, Aon plc did not have borrowings under either the 2017 Facility or the 2021 Facility, and was in compliance with all covenants contained therein during the twelve months ended December 31, 2016. Commercial Paper Aon Corporation, a wholly-owned subsidiary of Aon plc, has established a U.S. commercial paper program, which provides for commercial paper to be issued in an aggregate principal amount of up to $900 million, and Aon plc has established a European multi-currency commercial paper program that provides for commercial paper to be issued in an aggregate principal amount of up to €300 million. The U.S. commercial paper program is fully and unconditionally guaranteed by Aon plc and the European commercial paper program is fully and unconditionally guaranteed by Aon Corporation. In the aggregate, the Company had $329.2 million and $50.0 million of commercial paper outstanding at December 31, 2016 and 2015, respectively, which was included in Short-term debt and current portion of long-term debt in the Company’s Consolidated Statements of Financial Position. The weighted average commercial paper outstanding for 2016 and 2015 was $265.0 million and $402.0 million, respectively. The weighted average interest rate of the commercial paper outstanding during 2016 and 2015 was 0.22% and 0.50%, respectively. |
Lease Commitments |
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Leases, Operating [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease Commitments | Lease Commitments The Company leases office facilities, equipment, and automobiles under non-cancelable operating leases. These leases expire at various dates and may contain renewal and expansion options. In addition to base rental costs, occupancy lease agreements generally provide for rent escalations resulting from increased assessments for real estate taxes and other charges. The Company’s lease obligations are primarily for the use of office space. Rental expenses (including amounts applicable to taxes, insurance and maintenance) for operating leases are as follows (in millions):
At December 31, 2016, future minimum rental payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year are as follows (in millions):
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Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes Income before income tax and the provision for income tax consist of the following (in millions):
Income before income taxes shown above is based on the location of the business unit to which such earnings are attributable for tax purposes. In addition, because the earnings shown above may in some cases be subject to taxation in more than one country, the income tax provision shown above as U.K., U.S. or Other may not correspond to the geographic attribution of the earnings. The Company performs a reconciliation of the income tax provisions based on its domicile and statutory rate at each reporting period. The 2016, 2015, and 2014 reconciliations are based on the U.K. statutory corporate tax rate of 20.0%, 20.3%, and 21.5%, respectively. The reconciliation to the provisions reflected in the Consolidated Financial Statements is as follows:
The components of the Company’s deferred tax assets and liabilities are as follows (in millions):
(1) Refer to Note 1 “Basis of Presentation” for details regarding the Revision of Previously Issued Financial Statements. Deferred income taxes (assets and liabilities have been netted by jurisdiction) have been classified in the Consolidated Statements of Financial Position as follows (in millions):
(2) For the year ended December 31, 2015, Aon reclassified its current deferred tax positions to non-current and netted the new balances by jurisdiction. Refer to Note 2 “Summary of Significant Accounting Principles and Practices” for additional details. Valuation allowances have been established primarily with regard to the tax benefits of certain net operating loss, capital loss and interest expense carryforwards. Valuation allowances decreased by $32 million as of December 31, 2016, when compared to December 31, 2015, primarily attributable to the reversal of a valuation allowance and the impact of foreign currency translation. The Company recognized, as an adjustment to additional paid-in-capital, income tax benefits attributable to employee stock compensation of $(4) million, $126 million and $89 million in 2016, 2015, and 2014, respectively. The year-over-year change is primarily attributable to excess tax benefits not recorded in 2016 because the deduction did not decrease income taxes payable. Deferred income taxes of $11 million were accrued in 2016 on undistributed earnings that are not permanently reinvested. Undistributed earnings of non-U.S. entities were approximately $2.3 billion at December 31, 2016. U.S. income taxes have not been provided on these undistributed earnings because they are considered to be permanently reinvested in those subsidiaries. It is not practicable to estimate the amount of unrecognized deferred tax liabilities, if any, for these undistributed foreign earnings. The Company had the following operating and capital loss carryforwards (in millions):
As of December 31, 2016, the Company had $126 million of federal operating loss carryforwards and $110 million of state operating loss carryforwards for which a benefit will be recorded in APIC when realized. The U.K. operating losses and capital losses have an indefinite carryforward. The federal operating loss carryforwards as of December 31, 2016 expire at various dates from 2020 to 2036 and the state operating losses as of December 31, 2016 expire at various dates from 2017 to 2036. Operating and capital losses in other non-US jurisdictions have various carryforward periods and will begin to expire in 2019. During 2012, the Company was granted a tax holiday for the period from October 1, 2012 through September 30, 2022, with respect to withholding taxes and certain income derived from services in Singapore. This tax holiday and reduced withholding tax rate may be extended when certain conditions are met or may be terminated early if certain conditions are not met. The benefit realized was approximately $46 million, $23 million, and $7 million during the years ended December 31, 2016, 2015, and 2014, respectively. The impact of this tax holiday on diluted earnings per share was $0.17, $0.08, and $0.02 during the years ended December 31, 2016, 2015, and 2014, respectively. Uncertain Tax Positions The following is a reconciliation of the Company’s beginning and ending amount of uncertain tax positions (in millions):
The Company’s liability for uncertain tax positions as of December 31, 2016, 2015, and 2014, includes $240 million, $200 million, and $174 million, respectively, related to amounts that would impact the effective tax rate if recognized. It is possible that the amount of unrecognized tax benefits may change in the next twelve months; however, the Company does not expect the change to have a significant impact on its consolidated statements of income or consolidated balance sheets. These changes may be the result of settlements of ongoing audits. At this time, an estimate of the range of the reasonably possible outcomes within the twelve months cannot be made. The Company recognizes interest and penalties related to uncertain tax positions in its provision for income taxes. The Company accrued potential interest and penalties of $15 million, $2 million, and $4 million in 2016, 2015, and 2014, respectively. The Company recorded a liability for interest and penalties of $48 million, $33 million, and $31 million as of December 31, 2016, 2015, and 2014, respectively. The Company and its subsidiaries file income tax returns in their respective jurisdictions. The Company has substantially concluded all U.S. federal income tax matters for years through 2007. Material U.S. state and local income tax jurisdiction examinations have been concluded for years through 2005. The Company has concluded income tax examinations in its primary non-U.S. jurisdictions through 2005. |
Shareholders' Equity |
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders' Equity | Shareholders’ Equity Distributable Reserves As a U.K. incorporated company, the Company is required under U.K. law to have available “distributable reserves” to make share repurchases or pay dividends to shareholders. Distributable reserves may be created through the earnings of the U.K. parent company and, amongst other methods, through a reduction in share capital approved by the English Companies Court. Distributable reserves are not linked to a U.S. GAAP reported amount (e.g., retained earnings). As of December 31, 2016 and 2015, the Company had distributable reserves in excess of $1.6 billion and $2.1 billion, respectively. Ordinary Shares In April 2012, the Company’s Board of Directors authorized a share repurchase program under which up to $5.0 billion of Class A Ordinary Shares may be repurchased (“2012 Share Repurchase Program”). In November 2014, the Company’s Board of Directors authorized a new $5.0 billion share repurchase program in addition to the existing program (“2014 Share Repurchase Program” and, together with the 2012 Share Repurchase Program, the “Repurchase Programs”). Subsequent to the close of the fourth quarter 2016, the Board of Directors authorized a $5.0 billion increase to the existing remaining authorization under its share repurchase program. Under each program, shares may be repurchased through the open market or in privately negotiated transactions, from time to time, based on prevailing market conditions, and will be funded from available capital. During 2016, the Company repurchased 12.2 million shares at an average price per share of $102.66 for a total cost of $1.3 billion under the 2014 Share Repurchase Program. The Company recorded an additional $6 million of transaction costs associated with the repurchase to retained earnings during 2016. During 2015, the Company repurchased 16.0 million shares at an average price per share of $97.04 for a total cost of $1.6 billion under the Repurchase Programs. In August 2015, the $5 billion of Class A Ordinary Shares authorized under the 2012 Share Repurchase Program was exhausted. At December 31, 2016, the remaining authorized amount for share repurchase under the 2014 Share Repurchase Program is $2.8 billion. Under the Repurchase Programs, the Company has repurchased a total of 90.2 million shares for an aggregate cost of $7.2 billion. Net Income Per Share Weighted average shares outstanding are as follows (in millions):
Potentially issuable shares are not included in the computation of diluted net income per share if their inclusion would be antidilutive. There were no shares excluded from the calculation for in 2016, 2015, or 2014. Dividends During 2016, 2015, and 2014, the Company paid dividends on its Class A Ordinary Shares of $345.0 million, $323.0 million, and $273.0 million, respectively. Dividends paid per Class A Ordinary Share were $1.29, $1.15 and $0.92 for the years ended December 31, 2016, 2015, and 2014 respectively. Accumulated Other Comprehensive Loss Changes in Accumulated other comprehensive loss by component, net of related tax, are as follows (in millions):
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Employee Benefits |
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Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefits | Employee Benefits Defined Contribution Savings Plans Aon maintains defined contribution savings plans for the benefit of its U.S., U.K., Netherlands and Canada employees. The expense recognized for these plans is included in Compensation and benefits in the Consolidated Statements of Income, as follows (in millions):
Pension and Other Post-retirement Benefits The Company sponsors defined benefit pension and post-retirement health and welfare plans that provide retirement, medical, and life insurance benefits. The post-retirement healthcare plans are contributory, with retiree contributions adjusted annually, and the life insurance and pension plans are generally noncontributory. The significant U.S., U.K., Netherlands and Canadian pension plans are closed to new entrants. Pension Plans The following tables provide a reconciliation of the changes in the projected benefit obligations and fair value of assets for the years ended December 31, 2016 and 2015 and a statement of the funded status as of December 31, 2016 and 2015, for the material U.K. plans, U.S. plans and other major plans, which are located in the Netherlands and Canada. These plans represent approximately 92% of the Company’s projected benefit obligations.
In March 2016, the Company entered into an insurance contract that covers a portion of the assets within select U.K. pension schemes. The transaction resulted in a decrease in Prepaid pension assets and Accumulated other comprehensive income of $267 million. Amounts recognized in the Consolidated Statements of Financial Position consist of (in millions):
Amounts recognized in Accumulated other comprehensive loss (income) that have not yet been recognized as components of net periodic benefit cost at December 31, 2016 and 2015 consist of (in millions):
In 2016, U.S. plans with a projected benefit obligation (“PBO”) and an accumulated benefit obligation (“ABO”) in excess of the fair value of plan assets had a PBO of $2.9 billion, an ABO of $2.9 billion, and plan assets with a fair value of $1.7 billion. U.K. plans with a PBO in excess of the fair value of plan assets had a PBO of $1.2 billion and plan assets with a fair value of $1.1 billion, and plans with an ABO in excess of the fair value of plan assets had an ABO of $1.2 billion and plan assets with a fair value of $1.1 billion. Other plans with a PBO in excess of the fair value of plan assets had a PBO of $1.2 billion and plan assets with a fair value of $1.0 billion, and plans with an ABO in excess of the fair value of plan assets had an ABO of $1.1 billion and plan assets with a fair value of $1.0 billion. In 2015, U.S. plans with a PBO and an ABO in excess of the fair value of plan assets had a PBO of $3.2 billion, an ABO of $3.2 billion, and plan assets of $2.0 billion. U.K. plans with a PBO in excess of the fair value of plan assets had a PBO of $1.2 billion and plan assets with a fair value of $1.1 billion, and plans with an ABO in excess of the fair value of plan assets had an ABO of $1.2 billion and plan assets with a fair value of $1.1 billion. Other plans with a PBO in excess of the fair value of plan assets had a PBO of $1.2 billion and plan assets with a fair value of $1.0 billion, and plans with an ABO in excess of the fair value of plan assets had an ABO of $1.1 billion and plan assets with a fair value of $1.0 billion. The following table provides the components of net periodic benefit (income) cost for the plans (in millions):
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 its 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. In March 2016, the Company announced a plan to offer a voluntary one-time lump sum payment option to certain eligible former employees under one of the Company’s U.K. pension plans, that if accepted, would settle the Company’s pension obligations to them. The lump sum cash payment offer closed during the second quarter of 2016. In total, lump sum payments from plan assets of £116 million ($159 million using June 30, 2016 exchange rates) were paid. As a result of this settlement, the Company remeasured the assets and liabilities of the U.K. pension plan during the second quarter of 2016, which in aggregate resulted in a reduction to the projected benefit obligation of £103 million ($141 million using June 30, 2016 Exchange rates) as well as a non-cash settlement charge of £42 million ($61 million using average June 2016 exchange rate) in the second quarter of 2016. In August 2016, the Company announced a plan to offer a voluntary one-time lump sum payment option to certain eligible former employees under one of the Company’s U.S. pension plans, that if accepted, would settle the Company’s pension obligations to them. The lump sum cash payment offer closed during the fourth quarter of 2016. In total, lump sum payments from plan assets of $281 million were paid. As a result of this settlement, the Company remeasured the assets and liabilities of the U.S. pension plan during the fourth quarter of 2016, which in aggregate resulted in a reduction to the projected benefit obligation of $325 million as well as a non-cash settlement charge of $158 million in the fourth quarter of 2016. The weighted-average assumptions used to determine benefit obligations are as follows:
The weighted-average assumptions used to determine the net periodic benefit cost are as follows:
The amounts in Accumulated other comprehensive loss expected to be recognized as components of net periodic benefit cost during 2017 are $52 million in the U.S. and $41 million outside the U.S. Expected Return on Plan Assets To determine the expected long-term rate of return on plan assets, the historical performance, investment community forecasts and current market conditions are analyzed to develop expected returns for each asset class used by the plans. The expected returns for each asset class are weighted by the target allocations of the plans. The expected return on plan assets in the U.S. of 7.81% reflects a portfolio that is seeking asset growth through a higher equity allocation while maintaining prudent risk levels. The portfolio contains certain assets that have historically resulted in higher returns and other financial instruments to minimize downside risk. No plan assets are expected to be returned to the Company during 2017. Fair value of plan assets The Company determined the fair value of plan assets through numerous procedures based on the asset class and available information. Refer to Note 13 “Fair Value Measurements and Financial Instruments” for a description of the procedures performed to determine the fair value of the plan assets. The fair values of the Company’s U.S. pension plan assets at December 31, 2016 and December 31, 2015, by asset category, are as follows (in millions):
The fair values of the Company’s major U.K. pension plan assets at December 31, 2016 and December 31, 2015, by asset category, are as follows (in millions):
The following table presents the changes in the Level 3 fair-value category in the Company’s U.K. pension plans for the years ended December 31, 2016 and December 31, 2015 (in millions):
The fair values of the Company’s other major pension plan assets at December 31, 2016 and December 31, 2015, by asset category, are as follows (in millions):
Investment Policy and Strategy The U.S. investment policy, as established by the Aon Retirement Plan Governance and Investment Committee (“RPGIC”), seeks reasonable asset growth at prudent risk levels within target allocations, which are 41% equity investments, 30% fixed income investments, and 29% other investments. Aon believes that plan assets are well-diversified and are of appropriate quality. The investment portfolio asset allocation is reviewed quarterly and re-balanced to be within policy target allocations. The investment policy is reviewed at least annually and revised, as deemed appropriate by the RPGIC. The investment policies for international plans are generally established by the local pension plan trustees and seek to maintain the plans’ ability to meet liabilities and to comply with local minimum funding requirements. Plan assets are invested in diversified portfolios that provide adequate levels of return at an acceptable level of risk. The investment policies are reviewed at least annually and revised, as deemed appropriate to ensure that the objectives are being met. At December 31, 2016, the weighted average targeted allocation for the U.K. and non-U.S. plans was 14% for equity investments, 77% for fixed income investments, and 9% for other investments. Cash Flows Contributions Based on current assumptions, in 2017, the Company expects to contribute approximately $80 million, $87 million, and $18 million to its U.K., U.S. and other significant international pension plans, respectively. Estimated Future Benefit Payments Estimated future benefit payments for plans are as follows at December 31, 2016 (in millions):
U.S. and Canadian Other Post-Retirement Benefits The following table provides an overview of the accumulated projected benefit obligation, fair value of plan assets, funded status and net amount recognized as of December 31, 2016 and 2015 for the Company’s other significant post-retirement benefit plans located in the U.S. and Canada (in millions):
Other information related to the Company’s other post-retirement benefit plans are as follows:
Amounts recognized in Accumulated other comprehensive loss that have not yet been recognized as components of net periodic benefit cost at December 31, 2016 are $10 million and $3 million of net loss and prior service credit, respectively. The amount in Accumulated other comprehensive income expected to be recognized as a component of net periodic benefit cost during 2017 is $0.2 million and $0.3 million of net gain and prior service credit, respectively. Based on current assumptions, the Company expects:
The accumulated post-retirement benefit obligation is increased by $7 million and decreased by $6 million by a respective 1% increase or decrease to the assumed healthcare trend rate. The service cost and interest cost components of net periodic benefits cost is increased by $0.6 million and decreased by $0.5 million by a respective 1% increase or decrease to the assumed healthcare trend rate. For most of the participants in the U.S. plan, Aon’s liability for future plan cost increases for pre-65 and Medical Supplement plan coverage is limited to 5% per annum. Although the net employer trend rates range from 4% to 8.5% per year, because of this cap, these plans are effectively limited to 5% per year in the future. |
Share-Based Compensation Plans |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation Plans | Share-Based Compensation Plans The following table summarizes share-based compensation expense recognized in the Consolidated Statements of Income in Compensation and benefits (in millions):
Restricted Share Units RSUs generally vest between three and five years. The fair value of RSUs is based upon the market value of Aon ordinary shares at the date of grant. With certain limited exceptions, any break in continuous employment will cause the forfeiture of all non-vested awards. Compensation expense associated with RSUs is recognized on a straight-line basis over the requisite service period. Dividend equivalents are paid on certain RSUs, based on the initial grant amount. A summary of the status of the Company’s RSUs is as follows (shares in thousands):
The fair value of RSUs that vested during 2016, 2015 and 2014 was $200 million, $196 million and $183 million, respectively. Unamortized deferred compensation expense amounted to $382 million as of December 31, 2016, with a remaining weighted-average amortization period of approximately 2.1 years. Performance Share Awards The vesting of PSAs is contingent upon meeting a cumulative level of earnings per share performance over a three-year period. The actual issue of shares may range from 0-200% of the target number of PSAs granted, based on the terms of the plan and level of achievement of the related performance target. The grant date fair value of PSAs is based upon the market price of an Aon ordinary share at the date of grant. The performance conditions are not considered in the determination of the grant date fair value for these awards. Compensation expense is recognized over the performance period based on management’s estimate of the number of units expected to vest. Management evaluates its estimate of the actual number of shares expected to be issued at the end of the programs on a quarterly basis. The cumulative effect of the change in estimate is recognized in the period of change as an adjustment to Compensation and benefits expense, if necessary. Dividend equivalents are not paid on PSAs. Information regarding the Company’s target PSAs granted and shares that would be issued at current performance levels for PSAs granted during the years ended December 31, 2016, 2015, and 2014, respectively, is as follows (shares in thousands, dollars in millions, except fair value):
During 2016, the Company issued approximately 1.3 million shares in connection with performance achievements related to the 2013-2015 Leadership Performance Plan (“LPP”) cycle. During 2015, the Company issued approximately 1.6 million shares in connection with performance achievements related to the 2012-2014 LPP cycle. During 2014, the Company issued approximately 0.8 million shares in connection with performance achievements related to the 2011-2013 LPP cycle and 0.2 million shares related to other performance plans. |
Derivatives and Hedging |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives and Hedging | Derivatives and Hedging The Company is exposed to market risks, including changes in foreign currency exchange rates and interest rates. To manage the risk related to these exposures, the Company enters into various derivative instruments that reduce these risks by creating offsetting exposures. The Company does not enter into derivative transactions for trading or speculative purposes. Foreign Exchange Risk Management The Company is exposed to foreign exchange risk when it earns revenues, pays expenses, enters into monetary intercompany transfers denominated in a currency that differs from its functional currency, or enters into other transactions that are denominated in a currency other than its functional currency. The Company uses foreign exchange derivatives, typically forward contracts, options and cross-currency swaps, to reduce its overall exposure to the effects of currency fluctuations on cash flows. These exposures are hedged, on average, for less than two years. These derivatives are accounted for as hedges, and changes in fair value are recorded each period in Other comprehensive income (loss) in the Consolidated Statements of Comprehensive Income. The Company also uses foreign exchange derivatives, typically forward contracts and options to economically hedge the currency exposure of the Company’s global liquidity profile, including monetary assets or liabilities that are denominated in a non-functional currency of an entity, typically on a rolling 30-day basis, but may be for up to one year in the future. These derivatives are not accounted for as hedges, and changes in fair value are recorded each period in Other income in the Consolidated Statements of Income. The notional and fair values of derivative instruments are as follows (in millions):
Offsetting of financial assets and derivatives assets are as follows (in millions):
Offsetting of financial liabilities and derivative liabilities are as follows (in millions):
The amounts of derivative gains (losses) recognized in the Consolidated Financial Statements are as follows (in millions):
The Company recognized no gain (loss) in Interest expense for fair value hedges related to fixed rate debt for 2016 and 2015. There was a gain of $9 million recognized in 2014. The Company estimates that approximately $12 million of pretax losses currently included within Accumulated other comprehensive loss will be reclassified in to earnings in the next twelve months. The amount of gain (loss) recognized in income on the ineffective portion of derivatives for 2016, 2015, and 2014 was immaterial. The Company recorded a loss of $0.2 million for 2016 and a loss of $8 million and $18 million in Other income for foreign exchange derivatives not designated or qualifying as hedges for 2015 and 2014, respectively. Net Investments in Foreign Operations Risk Management The Company uses non-derivative financial instruments to protect the value of its investments in a number of foreign subsidiaries. In 2016, the Company designated a portion of its Euro-denominated commercial paper issuances as a non-derivative economic hedge of the foreign currency exposure of a net investment in its European operations. The change in fair value of the designated portion of the Euro-denominated commercial paper due to changes in foreign currency exchange rates is recorded in Foreign currency translation adjustment, a component of Accumulated other comprehensive income (loss), to the extent it is effective as a hedge. The foreign currency translation adjustment of the hedged net investments that is also recorded in Accumulated other comprehensive income (loss). Ineffective portions of net investment hedges, if any, are reclassified from Accumulated other comprehensive income (loss) into earnings during the period of change. As of December 31, 2016, the Company has €217 million ($227 million at December 31, 2016 exchange rates) of outstanding Euro-denominated commercial paper designated as a hedge of the foreign currency exposure of its net investment in its European operations. As of December 31, 2016, the unrealized gain recognized in Accumulated other comprehensive income (loss) related to the net investment non derivative hedging instrument was $18 million. The Company did not reclassify any deferred gains or losses related to net investment hedges from Accumulated other comprehensive income (loss) to earnings during the twelve months ended December 31, 2016. In addition, the Company did not incur any ineffectiveness related to net investment hedges during the twelve months ended December 31, 2016. |
Fair Value Measurements and Financial Instruments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements and Financial Instruments | Fair Value Measurements and Financial Instruments Accounting standards establish a three tier fair value hierarchy that prioritizes the inputs used in measuring fair values as follows:
The following methods and assumptions are used to estimate the fair values of the Company’s financial instruments, including pension assets (refer to Note 10 “Employee Benefits”): Money market funds consist of institutional prime, treasury, and government money market funds. The Company reviews these funds to obtain reasonable assurance that the fund net asset value is $1 per share. Cash and cash equivalents consist of cash and institutional short-term investment funds. The Company reviews the short-term investment funds to obtain reasonable assurance that the fund net asset value is $1 per share. Equity investments consist of domestic and international equity securities and equity derivatives valued using the closing stock price on a national securities exchange. Over the counter equity derivatives are valued using observable inputs such as underlying prices of the underlying security and volatility. On a sample basis the Company reviews the listing of Level 1 equity securities in the portfolio and agrees the closing stock prices to a national securities exchange, and independently verifies the observable inputs for Level 2 equity derivatives and securities. Fixed income investments consist of certain categories of bonds and derivatives. Corporate, government, and agency bonds are valued by pricing vendors who estimate fair value using recently executed transactions and proprietary models based on observable inputs, such as interest rate spreads, yield curves, and credit risk. Asset-backed securities are valued by pricing vendors who estimate fair value using discounted cash flow models utilizing observable inputs based on trade and quote activity of securities with similar features. Fixed income derivatives are valued by pricing vendors using observable inputs such as interest rates and yield curves. The Company obtains an understanding of the models, inputs, and assumptions used in developing prices provided by its vendors through discussions with the fund managers. The Company independently verifies the observable inputs, as well as assesses assumptions used for reasonableness based on relevant market conditions and internal Company guidelines. If an assumption is deemed unreasonable, based on the Company’s guidelines, it is then reviewed by management and the fair value estimate provided by the vendor is adjusted, if deemed appropriate. These adjustments do not occur frequently and historically are not material to the fair value estimates used in the Consolidated Financial Statements. Pooled funds consist of various equity, fixed income, commodity, and real estate mutual fund type investment vehicles. Pooled investment funds fair value is estimated based on the proportionate share ownership in the underlying net assets of the investment, which is based on the fair value of the underlying securities that trade on a national securities exchange. The Company gains an understanding of the investment guidelines and valuation policies of the fund and discusses fund performance with pooled fund managers. The Company obtains audited fund manager financial statements, when available. If the pooled fund is designed to replicate a publicly traded index, the Company compares the performance of the fund to the index to assess the reasonableness of the fair value measurement. Alternative investments consist of limited partnerships, private equity, and hedge funds. Alternative investment fair value is generally estimated based on the proportionate share ownership in the underlying net assets of the investment as determined by the general partner or investment manager. The valuations are based on various factors depending on investment strategy, proprietary models, and specific financial data or projections. The Company obtains audited fund manager financial statements, when available. The Company obtains a detailed understanding of the models, inputs, and assumptions used in developing prices provided by the investment managers (or appropriate party) through regular discussions. The Company also obtains the investment manger’s valuation policies and assesses the assumptions used for reasonableness based on relevant market conditions and internal Company guidelines. If an assumption is deemed unreasonable, based on the Company’s guidelines, it is then reviewed by management and the fair value estimate provided by the vendor is adjusted, if deemed appropriate. These adjustments do not occur frequently and historically are not material to the fair value estimates in the Consolidated Financial Statements. Derivatives are carried at fair value, based upon industry standard valuation techniques that use, where possible, current market-based or independently sourced pricing inputs, such as interest rates, currency exchange rates, or implied volatilities. Annuity contracts consist of insurance group annuity contracts purchased to match the pension benefit payment stream owed to certain selected plan participant demographics within a few major U.K. defined benefit plans. Annuity contracts are valued using a discounted cash flow model utilizing assumptions such as discount rate, mortality, and inflation. Real estate and REITs consist of publicly traded real estate investment trusts (“REITs”) and direct real estate investments. Level 1 REITs are valued using the closing stock price on a national securities exchange. Non Level 1 values are based on the proportionate share of ownership in the underlying net asset value as determined by the investment manager. The Company independently reviews the listing of Level 1 REIT securities in the portfolio and agrees the closing stock prices to a national securities exchange. The Company gains an understanding of the investment guidelines and valuation policies of the non Level 1 real estate funds and discusses performance with the fund managers. The Company obtains audited fund manager financial statements, when available. See the description of “Alternative investments” for further detail on valuation procedures surrounding non Level 1 REITs. Debt is carried at outstanding principal balance, less any unamortized discount or premium. Fair value is based on quoted market prices or estimates using discounted cash flow analyses based on current borrowing rates for similar types of borrowing arrangements. The following tables present the categorization of the Company’s assets and liabilities that are measured at fair value on a recurring basis at December 31, 2016 and December 31, 2015, respectively (in millions):
There were no transfers of assets or liabilities between fair value hierarchy levels during 2016 or 2015. The Company recognized no realized or unrealized gains or losses in the Consolidated Statements of Income related to assets and liabilities measured at fair value using unobservable inputs in 2016, 2015, or 2014. The fair value of Long-term debt is classified as Level 2 of the fair value hierarchy. The following table discloses the Company’s financial instruments where the carrying amounts and fair values differ (in millions):
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Commitments and Contingencies |
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Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Aon and its subsidiaries are subject to numerous claims, tax assessments, lawsuits and proceedings that arise in the ordinary course of business, which frequently include errors and omissions (“E&O”) claims. The damages claimed in these matters are or may be substantial, including, in many instances, claims for punitive, treble or extraordinary damages. While Aon maintains meaningful E&O insurance and other insurance programs to provide protection against certain losses that arise in such matters, Aon has exhausted or materially depleted its coverage under some of the policies that protect the Company and, consequently, is self-insured or materially self-insured for some claims. Accruals for these exposures, and related insurance receivables, when applicable, are included in the Consolidated Statements of Financial Position and have been recognized in Other general expenses in the Consolidated Statements of Income to the extent that losses are deemed probable and are reasonably estimable. These amounts are adjusted from time to time as developments warrant. Matters that are not probable and reasonably estimable are not accrued for in the financial statements. The Company has included in the current matters described below certain matters in which (1) loss is probable (2) loss is reasonably possible; that is, more than remote but not probable, or (3) there exists the reasonable possibility of loss greater than the accrued amount. In addition, the Company may from time to time disclose matters for which the probability of loss could be remote but the claim amounts associated with such matters are potentially significant. The reasonably possible range of loss for the matters described below, in excess of amounts that are deemed probable and estimable and therefore already accrued, is estimated to be between $0 and $0.2 billion, exclusive of any insurance coverage. These estimates are based on currently available information. As available information changes, the matters for which Aon is able to estimate may change, and the estimates themselves may change. In addition, many estimates involve significant judgment and uncertainty. For example, at the time of making an estimate, Aon may only have limited information about the facts underlying the claim, and predictions and assumptions about future court rulings and outcomes may prove to be inaccurate. Although management at present believes that the ultimate outcome of all matters described below, individually or in the aggregate, will not have a material adverse effect on the consolidated financial position of Aon, legal proceedings are subject to inherent uncertainties and unfavorable rulings or other events. Unfavorable resolutions could include substantial monetary or punitive damages imposed on Aon or its subsidiaries. If unfavorable outcomes of these matters were to occur, future results of operations or cash flows for any particular quarterly or annual period could be materially adversely affected. Current Matters A retail insurance brokerage subsidiary of Aon was sued on September 14, 2010 in the Chancery Court for Davidson County, Tennessee Twentieth Judicial District, at Nashville by a client, Opry Mills Mall Limited Partnership (“Opry Mills”) that sustained flood damage to its property in May 2010. The lawsuit seeks $200 million in coverage from numerous insurers with whom this Aon subsidiary placed the client’s property insurance coverage. The insurers contend that only $50 million in coverage (which has already been paid) is available for the loss because the flood event occurred on property in a high hazard flood zone. Opry Mills is seeking full coverage from the insurers for the loss and has sued this Aon subsidiary in the alternative for the same $150 million difference on various theories of professional liability if the court determines there is not full coverage. In addition, Opry Mills seeks prejudgment interest, attorneys’ fees and enhanced damages which could substantially increase Aon’s exposure. In March 2015, the trial court granted partial summary judgment in favor of plaintiffs and against the insurers, holding generally that the plaintiffs are entitled to $200 million in coverage under the language of the policies. In August 2015, a jury returned a verdict in favor of Opry Mills and against the insurers in the amount of $204 million. The insurers have appealed both of these trial court decisions. Aon believes it has meritorious defenses and intends to vigorously defend itself against these claims. On June 1, 2007, the International Road Transport Union (“IRU”) sued Aon in the Geneva Tribunal of First Instance in Switzerland. IRU alleges, among other things, that, between 1995 and 2004, a business acquired by Aon and, later, an Aon subsidiary (1) accepted commissions for certain insurance placements that violated a fee agreement entered between the parties and (2) negligently failed to ask certain insurance carriers to contribute to the IRU’s risk management costs. IRU sought damages of approximately CHF 46 million ($45 million at December 31, 2016 exchange rates) and $3 million, plus legal fees and interest of approximately $30 million. On December 2, 2014, the Geneva Tribunal of First Instance entered a judgment that accepted some, and rejected other, of IRU’s claims. The judgment awarded IRU CHF 16.8 million ($16 million at December 31, 2016 exchange rates) and $3 million, plus interest and adverse costs. The entire amount of the judgment, including interest through December 31, 2014, totaled CHF 27.9 million ($27 million at December 31, 2016 exchange rates) and $5 million. On January 26, 2015, in return for IRU agreeing not to appeal the bulk of its dismissed claims, the Aon subsidiary agreed not to appeal a part of the judgment and to pay IRU CHF 12.8 million ($14 million at January 31, 2015 exchange rates) and $4.7 million without Aon admitting liability. The Aon subsidiary appealed those aspects of the judgment it retained the right to appeal. IRU did not appeal. The Geneva Appellate Court affirmed the judgment of the Geneva Tribunal of First Instance. The Aon subsidiary filed an appeal (which is now under submission) to the Swiss Supreme Court. The Aon subsidiary’s maximum liability on appeal is limited to CHF 8.7 million ($8 million at December 31, 2016 exchange rates) and $115,000 (plus interest and costs) beyond what the subsidiary has already paid. A pensions consulting and administration subsidiary of Aon provided advisory services to the Trustees of the Gleeds pension fund in the United Kingdom and, on occasion, to the relevant employer of the fund. In April 2014, the High Court, Chancery Division, London found that certain governing documents of the fund that sought to alter the fund’s benefit structure and that had been drafted by Aon were procedurally defective and therefore invalid. No lawsuit naming Aon as a party was filed, although a tolling agreement was entered. The High Court decision says that the additional liabilities in the pension fund resulting from the alleged defect in governing documents amount to approximately £45 million ($55 million at December 31, 2016 exchange rates). In December 2014, the Court of Appeal granted the employer leave to appeal the High Court decision. At a hearing in October 2016, the Court of Appeal approved a settlement of the pending litigation. On October 31, 2016, the fund’s trustees and employer sued Aon in the High Court, Chancery Division, London, alleging negligence and breach of duty in relation to the governing documents. The proceedings were served on Aon on December 20, 2016. The claimants seek damages of approximately £70 million ($86 million at December 31, 2016 exchange rates). Aon believes that it has meritorious defenses and intends to vigorously defend itself against this potential claim. On June 29, 2015, Lyttelton Port Company Limited (“LPC”) sued Aon New Zealand in the Christchurch Registry of the High Court of New Zealand. LPC alleges, among other things, that Aon was negligent and in breach of contract in arranging LPC’s property insurance program for the period covering June 30, 2010, to June 30, 2011. LPC contends that acts and omissions by Aon caused LPC to recover less than it otherwise would have from insurers for losses suffered in the 2010/2011 Canterbury Earthquakes. LPC claims damages of approximately NZD $184 million ($127 million at December 31, 2016 exchange rates) plus interest and costs. Aon believes that it has meritorious defenses and intends to vigorously defend itself against these claims. Settled/Closed Matters A pensions consulting and administration subsidiary of Hewitt before its acquisition by Aon provided advisory services to the trustees of the Philips UK pension fund and the relevant employer of fund beneficiaries. On January 2, 2014, Philips Pension Trustees Limited and Philips Electronics UK Limited (together, “Philips”) sued Aon in the High Court, Chancery Division, London alleging negligence and breach of duty. The proceedings assert Philips’ right to claim damages related to Philips’ use of a credit default swap hedging strategy pursuant to the supply of the advisory services, which is said to have resulted in substantial damages to Philips. Philips sought approximately £189 million ($232 million at December 31, 2016 exchange rates), plus interest and costs. In June 2015, the High Court ordered Philips to clarify several aspects of its claim. In its clarification, Philips increased the amount of its claim to £290 million ($356 million at December 31, 2016 exchange rates), plus interest and costs. In October 2016, all parties reached an agreement to settle this case, and the settlement is now concluded. The terms of this settlement did not have a material impact on Aon’s results of operations or financial condition. Guarantees and Indemnifications In connection with the redomicile of Aon’s headquarters (the “Redomestication”), the Company on April 2, 2012 entered into various agreements pursuant to which it agreed to guarantee the obligations of its subsidiaries arising under issued and outstanding debt securities. Those agreements included the (1) Amended and Restated Indenture, dated as of April 2, 2012, among Aon Corporation, Aon plc, and The Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”) (amending and restating the Indenture, dated as of September 10, 2010, between Aon Corporation and the Trustee), (2) Amended and Restated Indenture, dated as of April 2, 2012, among Aon Corporation, Aon plc and the Trustee (amending and restating the Indenture, dated as of December 16, 2002, between Aon Corporation and the Trustee), (3) Amended and Restated Indenture, dated as of April 2, 2012, among Aon Corporation, Aon plc and the Trustee (amending and restating the Indenture, dated as of January 13, 1997, as supplemented by the First Supplemental Indenture, dated as of January 13, 1997), and (4) First Supplemental Indenture, dated as of April 2, 2012, among Aon Finance N.S. 1, ULC, as issuer, Aon Corporation, as guarantor, Aon plc, as guarantor, and Computershare Trust Company of Canada, as trustee. The Company provides a variety of guarantees and indemnifications to its customers and others. The maximum potential amount of future payments represents the notional amounts that could become payable under the guarantees and indemnifications if there were a total default by the guaranteed parties, without consideration of possible recoveries under recourse provisions or other methods. These amounts may bear no relationship to the expected future payments, if any, for these guarantees and indemnifications. Any anticipated amounts payable are included in the Company’s Consolidated Financial Statements, and are recorded at fair value. The Company expects that, as prudent business interests dictate, additional guarantees and indemnifications may be issued from time to time. Letters of Credit Aon has entered into a number of arrangements whereby the Company’s performance on certain obligations is guaranteed by a third party through the issuance of a letter of credit (“LOCs”). The Company had total LOCs outstanding of approximately $90 million at December 31, 2016, compared to $58 million at December 31, 2015. These letters of credit cover the beneficiaries related to certain of Aon’s U.S. and Canadian non-qualified pension plan schemes and secure deductible retentions for Aon’s own workers compensation program. The Company has also obtained LOCs to cover contingent payments for taxes and other business obligations to third parties, and other guarantees for miscellaneous purposes at its international subsidiaries. Premium Payments The Company has certain contractual contingent guarantees for premium payments owed by clients to certain insurance companies. The maximum exposure with respect to such contractual contingent guarantees was approximately $95 million at December 31, 2016 compared to $104 million at December 31, 2015. |
Segment Information |
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Segment Information | Segment Information The Company has two reportable segments: Risk Solutions and HR Solutions. Unallocated income and expenses, when combined with the reportable segments and after the elimination of intersegment revenues and expenses, equal the amounts in the Consolidated Financial Statements. The accounting policies of the reportable segments are the same as those described in Note 2 “Summary of Significant Accounting Principles and Practices.” 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 a number of factors including revenue growth, expense discipline, return on invested capital, and other factors. The Company does not present net assets by reportable 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):
Commissions, fees and other revenues by product are as follows (in millions):
Fiduciary investment income by segment is as follows (in millions):
A reconciliation of segment operating income before tax to income before income taxes is as follows (in millions):
Unallocated expenses include administrative or other costs not attributable to the operating segments, such as corporate governance costs. Interest income represents income earned on Cash and cash equivalents and Short-term investments. 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 remeasurement. Revenues are generally attributed to geographic areas based on the location of the resources producing the revenues. Intercompany revenues and expenses are eliminated in consolidated results. Consolidated Revenue by geographic area, which is attributed on the basis of where the services are performed, is as follows (in millions):
Consolidated Non-current assets by geographic area are as follows (in millions):
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Guarantee of Registered Securities |
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Guarantee of Registered Securities | Guarantee of Registered Securities As described in Note 14 “Commitments and Contingencies,” 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, including the 5.00% Notes due September 2020, the 8.205% Notes due January 2027 and the 6.25% Notes due September 2040 (collectively, the “Aon Corp Notes”). Aon Corporation is a 100% indirectly owned subsidiary of Aon plc. All guarantees of Aon plc are full and unconditional. There are no other subsidiaries of Aon plc that are guarantors of the Aon Corp Notes. In addition, 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% Notes due January 2027 and also agreed to guarantee the obligations of Aon plc arising under the 4.45% Notes due 2043, the 4.00% Notes due November 2023, the 2.875% Notes due May 2026, the 3.50% Notes due June 2024, the 4.60% Notes due June 2044, the 4.75% Notes due May 2045, the 2.80% Notes due March 2021, and the 3.875% Notes due December 2025 (collectively, the “Aon plc Notes”). 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 Aon plc Notes. As a result of the existence of these guarantees, the Company has elected to present the financial information set forth in this footnote in accordance with Rule 3-10 of Regulation S-X. The following tables set forth Condensed Consolidating Statements of Income and Condensed Consolidating Statements of Comprehensive Income for the years ended December 31, 2016, 2015, and 2014, Condensed Consolidating Statements of Financial Position as of December 31, 2016 and December 31, 2015, and Condensed Consolidating Statements of Cash Flows for the years ended December 31, 2016, 2015, and 2014, 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. The principal consolidating adjustments are to eliminate the investment in subsidiaries and intercompany balances and transactions. In January 2015, Aon plc transferred its ownership of all of its directly held subsidiaries to Aon Global Holdings Limited, an intermediate holding company. The financial results of Aon Global Holdings Limited are 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 plc to Aon Global Holdings Limited below for all periods presented. Certain amounts in prior year’s consolidating statements of income have been reclassified and adjusted to conform to the 2016 presentation. In prior periods, other income (expense) from intercompany transactions were recognized in Compensation and benefits and Other general expenses. These amounts are now included in Intercompany other income (expense) in the Condensed Consolidating Statements of Income. The Company believes this provides greater clarity into the income generated from operations and intercompany transactions. Condensed Consolidating Statement of Income
Condensed Consolidating Statement of Income
Condensed Consolidating Statement of Income
Condensed Consolidating Statement of Comprehensive Income
Condensed Consolidating Statement of Comprehensive Income
Condensed Consolidating Statement of Comprehensive Income
Condensed Consolidating Statement of Financial Position
Condensed Consolidating Statement of Financial Position
Condensed Consolidating Statement of Cash Flows
(1) Advances from (to) affiliates and other includes activity related to the Company’s intercompany and cash pooling arrangements. Condensed Consolidating Statement of Cash Flows
(1) Advances from (to) affiliates and other includes activity related to the Company’s intercompany and cash pooling arrangements. Condensed Consolidating Statement of Cash Flows
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Quarterly Financial Data (Unaudited) |
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) As discussed in Note 1 “Basis of Presentation,” the Company has identified certain accounting errors that affected consolidated financial amounts that were previously presented in its earlier Forms 10-Q and 10-K for the periods below. Selected quarterly financial data for the years ended December 31, 2016 and 2015 as reported, the effect of the change, and selected quarterly financial data for the years ended December 31, 2016 and 2015 as revised, are as follows (in millions, except per share data):
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Subsequent Event - Disposition of Benefits Administration and Business Process Outsourcing (Notes) |
12 Months Ended |
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Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Event - Disposition of Benefits Administration and Business Process Outsourcing | Subsequent Event - Disposition of Benefits Administration and Business Process Outsourcing On February 9, 2017, Aon entered into a Purchase Agreement (the “Purchase Agreement”) with Tempo Acquisition, LLC (the “Buyer”). Pursuant to the Purchase Agreement, Aon has agreed to sell its benefits administration and business process outsourcing business (the “Tempo Business”) to the Buyer, an entity formed and controlled by affiliates of The Blackstone Group L.P. (the “Sponsor”), and certain designated purchasers that are direct or indirect subsidiaries of the Buyer. The Tempo Business develops and implements software and services solutions, and provides to clients, health and welfare and retirement benefits administration services, hosted and cloud-based human resources business process outsourcing administration and implementation services, and other related communications consulting services. Subject to the terms and conditions of the Purchase Agreement, the Buyer has agreed to purchase all of the outstanding equity interests of the Tempo Business, plus certain related assets, for a purchase price of (i) $4.3 billion in cash payable at closing, subject to customary adjustments set forth in the Purchase Agreement, and (ii) deferred consideration of up to $500 million, plus the assumption of certain liabilities (the “Transaction”). Under the Purchase Agreement, the deferred consideration is payable in cash in an amount equal to 20% of the incremental cash proceeds realized by the affiliates of the Sponsor and certain other equityholders of the Buyer from a liquidity event if (i) total realized cash proceeds to the Sponsor and such other equityholders over the life of their respective investments upon the closing of the Transaction (inclusive of all interim distributions) exceeds 2.25 times the amount of their equity investments in the Buyer at the closing of the Transaction and (ii) the internal rate of return over the life of their respective investments (inclusive of all interim distributions) exceeds 15%. The completion of the Transaction is subject to customary closing conditions, including, among others: (i) the expiration or termination of the waiting period under the Hart-Scott Rodino Antitrust Improvements Act of 1976, as amended; and (ii) the receipt of all approvals and the filing of all applicable filings under any relevant foreign jurisdictions that are required to be made or obtained as set forth in the Purchase Agreement. The Buyer’s obligations under the Purchase Agreement are not conditioned on receipt of financing; however, the Buyer is not required to complete the Transaction until after the completion of a customary fifteen days consecutive business-day marketing period to commence after the Company has provided required financial information to the Buyer. The Buyer has obtained an equity commitment (“Equity Commitment”) from affiliates of the Sponsor and debt financing commitments (“Debt Commitments”) from BofA Merrill Lynch, Barclays, Credit Suisse, Citigroup, Macquarie, Deutsche Bank, and Morgan Stanley, together with certain of their respective affiliates. The aggregate proceeds of the Equity Commitment and the Debt Commitments will be used by the Buyer (i) to pay the Purchase Price, and (ii) to pay fees and expenses incurred by the Buyer in connection with the Transaction. The Purchase Agreement provides that the Buyer will be required to pay to Aon a $215 million termination fee, together with the reimbursement of certain expenses, if the Purchase Agreement is terminated under certain circumstances. Both Aon and the Buyer have the right to terminate the Purchase Agreement if the closing has not occurred on or before August 9, 2017. An affiliate of the Sponsor has guaranteed the payment of the termination fee to the Company, if and when due, under the Purchase Agreement, together with certain other reimbursement obligations of the Buyer under the Purchase Agreement. Both Aon and the Buyer have agreed to indemnify each other for losses arising from certain breaches of the Purchase Agreement and for certain other liabilities, subject to certain limitations. Aon and the Buyer have made representations and warranties and have agreed to covenants related to the Tempo Business and the Transaction. Between the date of the Purchase Agreement and the closing of the Transaction, Aon has agreed to operate the Tempo Business in the ordinary course substantially as operated immediately prior to the date of the Purchase Agreement and to preserve the goodwill of the suppliers, contractors, licensors, employees, customers, and distributors of, and others having business relations with the Tempo Business. Aon and the Buyer have agreed to enter into certain Transaction-related agreements at the closing, including two commercial agreements, a transition services agreement, certain intellectual property license agreements, sub-leases and other customary agreements. Aon will continue to be a significant client of the Tempo Business and the Tempo Business has agreed to use Aon for its broking and other services. In connection with the Transaction, the Company expects to implement a cost reduction program. |
Basis of Presentation Basis of Presentation (Policies) |
12 Months Ended |
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Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of the accompanying Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of reserves and expenses. These estimates and assumptions are based on management’s best estimates and judgments. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment. Management believes its estimates to be reasonable given the current facts available. Aon adjusts such estimates and assumptions when facts and circumstances dictate. Illiquid credit markets, volatile equity markets, and foreign currency exchange rate movements increase the uncertainty inherent in such estimates and assumptions. As future events and their effects cannot be determined, among other factors, with precision, actual results could differ significantly from these estimates. Changes in estimates resulting from continuing changes in the economic environment would, if applicable, be reflected in the financial statements in future periods. |
Summary of Significant Accounting Principles and Practices (Policies) |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||
Revenue Recognition | Revenue Recognition Risk Solutions segment revenues primarily include insurance commissions and fees for services rendered and investment income on funds held on behalf of clients. Revenues are recognized when they are earned and realized or realizable. The Company considers revenues to be earned and realized or realizable when all of the following four conditions are met: (1) persuasive evidence of an arrangement exists, (2) the arrangement fee is fixed or determinable, (3) delivery or performance has occurred, and (4) collectability is reasonably assured. For brokerage commissions, revenue is typically recognized at the completion of the placement process, assuming all four criteria required to recognize revenue have been met. The placement process is typically considered complete on the effective date of the related policy. Commission revenues are recorded net of allowances for estimated policy cancellations, which are determined based on an evaluation of historical and current cancellation data. HR Solutions segment revenues consist primarily of fees paid by clients for consulting advice and outsourcing contracts. Fees paid by clients for consulting services are typically charged on an hourly, project or fixed-fee basis. Revenues from time-and-materials or cost-plus arrangements are recognized as services are performed, assuming all four criteria to recognize revenue have been met. Revenues from fixed-fee contracts are recognized as services are provided using a proportional-performance model or at the completion of a project based on facts and circumstances of the client arrangement. Revenues from health care exchange arrangements are typically recognized upon successful enrollment of participants, net of a reserve for estimated cancellations, assuming all four criteria to recognize revenue have been met. Reimbursements received for out-of-pocket expenses are recorded as a component of revenues. The Company’s outsourcing contracts typically have three-to-five year terms for both benefits services and human resources business process outsourcing (“HR BPO”) services. The Company recognizes revenues as services are performed, assuming all criteria to recognize revenue have been met. The Company may also receive implementation fees from clients either up-front or over the ongoing services period as a component of the fee per participant. Lump sum implementation fees received from a client are typically deferred and recognized ratably over the ongoing contract service period. If a client terminates an outsourcing service arrangement prior to the end of the contract, a loss on the contract may be recorded, if necessary, and any remaining deferred implementation revenues would typically be recognized over the remaining service period through the termination date. In connection with the Company’s long-term outsourcing service agreements, highly customized implementation efforts are often necessary to set up clients and their human resource or benefit programs on the Company’s systems and operating processes. Qualifying costs of implementation incurred prior to the services commencing are generally deferred and amortized over the period that the related ongoing services revenue is recognized. Deferred costs are assessed for recoverability on a periodic basis to the extent the deferred cost exceeds related deferred revenue. |
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Share-Based Compensation Costs | Share-Based Compensation Costs Share-based payments to employees, including grants of restricted share units and performance share awards, are measured based on estimated grant date fair value. The Company recognizes compensation expense over the requisite service period for awards expected to ultimately vest. Forfeitures are estimated on the date of grant and revised if actual or expected forfeiture activity differs materially from original estimates. |
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Pension and Other Post-Retirement Benefits | Pension and Other Post-Retirement Benefits The Company records net period cost relating to its pension and other post-retirement benefit plans based on calculations that include various actuarial assumptions, including discount rates, assumed rates of return on plan assets, inflation rates, mortality rates, compensation increases, and turnover rates. The Company reviews its actuarial assumptions on an annual basis and modifies these assumptions based on current rates and trends. The effects of gains, losses, and prior service costs and credits are amortized over future service periods or future estimated lives if the plans are frozen. The funded status of each plan, calculated as the fair value of plan assets less the benefit obligation, is reflected in the Company’s Consolidated Statements of Financial Position using a December 31 measurement date. |
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Net Income per Share | Net Income per Share Basic net income per share is computed by dividing net income available to ordinary shareholders by the weighted-average number of ordinary shares outstanding, including participating securities, which consist of unvested share awards with non-forfeitable rights to dividends. Diluted net income per share is computed by dividing net income available to ordinary shareholders by the weighted-average number of ordinary shares outstanding, which have been adjusted for the dilutive effect of potentially issuable ordinary shares (excluding those that are considered participating securities), including certain contingently issuable shares. The diluted earnings per share calculation reflects the more dilutive effect of either (1) the two-class method that assumes that the participating securities have not been exercised, or (2) the treasury stock method. Potentially issuable shares are not included in the computation of diluted income per share if their inclusion would be antidilutive. |
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Cash and Cash Equivalents and Short-term Investments | Cash and Cash Equivalents and Short-term Investments Cash and cash equivalents include cash balances and all highly liquid investments with initial maturities of three months or less. Short-term investments consist of money market funds |
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Fiduciary Assets and Liabilities | Fiduciary Assets and Liabilities In its capacity as an insurance agent and broker, Aon collects premiums from insureds and, after deducting its commission, remits the premiums to the respective insurers. Aon also collects claims or refunds from insurers on behalf of insureds. Uncollected premiums from insureds and uncollected claims or refunds from insurers are recorded as Fiduciary assets in the Company’s Consolidated Statements of Financial Position. Unremitted insurance premiums and claims are held in a fiduciary capacity and the obligation to remit these funds is recorded as Fiduciary liabilities in the Company’s Consolidated Statements of Financial Position. Some of the Company’s outsourcing agreements also require it to hold funds to pay certain obligations on behalf of clients. These funds are also recorded as Fiduciary assets with the related obligation recorded as Fiduciary liabilities in the Company’s Consolidated Statements of Financial Position. |
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Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company’s allowance for doubtful accounts with respect to receivables is based on a combination of factors, including evaluation of historical write-offs, aging of balances, and other qualitative and quantitative analyses. |
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Fixed Assets | Fixed Assets Fixed assets are stated at cost, less accumulated depreciation. Included in this category is internal use software, which is software that is acquired, internally developed or modified solely to meet internal needs, with no plan to market externally. Costs related to directly obtaining, developing or upgrading internal use software are capitalized. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets, which are generally as follows:
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Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill represents the excess of acquisition cost over the fair value of the net assets in the acquisition of a business. Goodwill is allocated to various reporting units, which are one reporting level below the operating segment. Upon disposition of a business entity, goodwill is allocated to the disposed entity based on the fair value of that entity compared to the fair value of the reporting unit in which it was included. Goodwill is not amortized, but instead is tested for impairment at least annually. The goodwill impairment test is performed at the reporting unit level. The Company initially performs a qualitative analysis to determine if it is more likely than not that the goodwill balance is impaired. If such a determination is made, then the Company will perform a two-step quantitative analysis. First, the fair value of each reporting unit is compared to its carrying value. If the fair value of the reporting unit is less than its carrying value, the Company performs a hypothetical purchase price allocation based on the reporting unit’s fair value to determine the fair value of the reporting unit’s goodwill. Any resulting difference will be a charge to Other general expenses in the Consolidated Statements of Income in the period in which the determination is made. Fair value is determined using a combination of present value techniques and market prices of comparable businesses. Intangible assets are primarily comprised of tradenames and customer-related, contract-based, and technology assets. Tradenames are not amortized when such assets have been determined to have indefinite useful lives, and are tested at least annually for impairments using an analysis of expected future cash flows. Interim impairment testing may be performed when events or changes in circumstances indicate that the carrying amount of the intangible asset may not be recoverable. Customer related and contract based assets are amortized over periods ranging from 1 to 16 years, with a weighted average original life of 11 years. Technology assets are typically amortized over 7 years. |
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Derivatives | Derivatives Derivative instruments are recognized in the Consolidated Statements of Financial Position at fair value. Where the Company has entered into master netting agreements with counterparties, the derivative positions are netted by counterparty and are reported accordingly in other assets or other liabilities. Changes in the fair value of derivative instruments are recognized in earnings each period, unless the derivative is designated and qualifies as a cash flow or net investment hedge. The Company has historically designated the following hedging relationships for certain transactions: (i) a hedge of the change in fair value of a recognized asset or liability or firm commitment (“fair value hedge”), (ii) a hedge of the variability in cash flows from a recognized variable-rate asset or liability or forecasted transaction (“cash flow hedge”), and (iii) a hedge of the net investment in a foreign operation (“net investment hedge”). In order for a derivative to qualify for hedge accounting, the derivative must be formally designated as a fair value, cash flow, or a net investment hedge by documenting the relationship between the derivative and the hedged item. The documentation must include a description of the hedging instrument, the hedged item, the risk being hedged, Aon’s risk management objective and strategy for undertaking the hedge, the method for assessing the effectiveness of the hedge, and the method for measuring hedge ineffectiveness. Additionally, the hedge relationship must be expected to be highly effective at offsetting changes in either the fair value or cash flows of the hedged item at both the inception of the hedge and on an ongoing basis. Aon assesses the ongoing effectiveness of its hedges and measures and records hedge ineffectiveness, if any, at the end of each quarter or more frequently if facts and circumstances require. For a derivative designated as a hedging instrument, the changes in the fair value of a recognized asset or liability or a firm commitment (a fair value hedge), the gain or loss is recognized in earnings in the period of change together with the offsetting loss or gain on the hedged item attributable to the risk being hedged. The effect is to reflect in earnings the extent to which the hedge is not effective in achieving offsetting changes in fair value. For a cash flow hedge that qualifies for hedge accounting, the effective portion of the change in fair value of a hedging instrument is recognized in Other Comprehensive Income (“OCI”) and subsequently reclassified to earnings in the same period the hedged item impacts earnings. The ineffective portion of the change in fair value is recognized immediately in earnings. For a net investment hedge, the effective portion of the change in fair value of the hedging instrument is recognized in OCI as part of the cumulative translation adjustment, while the ineffective portion is recognized immediately in earnings. Changes in the fair value of a derivative that is not designated as part of a hedging relationship (commonly referred to as an “economic hedge”) are recorded in Other income in the Consolidated Statements of Income. The Company discontinues hedge accounting prospectively when (1) the derivative expires or is sold, terminated, or exercised, (2) the qualifying criteria are no longer met, or (3) management removes the designation of the hedging relationship. |
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Foreign Currency | Foreign Currency Certain of the Company’s non-US operations use their respective local currency as their functional currency. These operations that do not have the U.S. dollar as their functional currency translate their financial statements at the current rates of exchange in effect at the balance sheet date and revenues and expenses using rates that approximate those in effect during the period. The resulting translation adjustments are included in net foreign currency translation adjustments within the Consolidated Statements of Shareholders’ Equity. Gains and losses from the remeasurement of monetary assets and liabilities that are denominated in a non-functional currency are included in Other income within the Consolidated Statements of Income. |
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Income Taxes | Income Taxes Deferred income taxes are recognized for the effect of temporary differences between financial reporting and tax basis of assets and liabilities and are measured using the enacted marginal tax rates and laws that are currently in effect. The effect on deferred tax assets and liabilities from a change in tax rates is recognized in the period when the rate change is enacted. Deferred tax assets are reduced by valuation allowances if, based on the consideration of all available evidence, it is more likely than not that some portion of the deferred tax asset will not be realized. Significant weight is given to evidence that can be objectively verified. Deferred tax assets are realized by having sufficient future taxable income to allow the related tax benefits to reduce taxes otherwise payable. The sources of taxable income that may be available to realize the benefit of deferred tax assets are future reversals of existing taxable temporary differences, future taxable income exclusive of reversing temporary differences and carry-forwards, taxable income in carry-back years and tax planning strategies that are both prudent and feasible. The Company recognizes the effect of income tax positions only if sustaining those positions is more likely than not. Tax positions that meet the more likely than not recognition threshold but are not highly certain are initially and subsequently measured based on the largest amount of benefit that is greater than 50% likely of being realized upon settlement with the taxing authority. Only information that is available at the reporting date is considered in the Company’s recognition and measurement analysis, and events or changes in facts and circumstances are accounted for in the period in which the event or change in circumstance occurs. The Company records penalties and interest related to unrecognized tax benefits in Income taxes in the Company’s Consolidated Statements of Income. |
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New Accounting Pronouncements | New Accounting Pronouncements Income Tax Consequences of Intercompany Transactions In October 2016, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance on the income tax consequences of intra-entity asset transfers other than inventory. The guidance will require that the seller and buyer recognize the consolidated current and deferred income tax consequences of a transaction in the period the transaction occurs rather than deferring to a future period and recognizing those consequences when the asset has been sold to an outside party or otherwise recovered through use (i.e. depreciated, amortized, impaired). An entity will apply the new guidance on a modified retrospective basis with a cumulative effect adjustment to retained earnings as of the beginning of the period of adoption. The new guidance is effective for Aon in the first quarter of 2018, and the Company is currently evaluating the impact that the standard will have on its Consolidated Financial Statements. Statement of Cash Flows In August 2016, the FASB issued new accounting guidance on the classification of certain cash receipts and cash payments. Under the new guidance, an entity will no longer have discretion to choose the classification for a number of transactions, including contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, and distributions received from equity method investees. The new standard will be effective for the Company in the first quarter of 2018, with early application permitted. An entity will apply the new guidance through retrospective adjustment to all periods presented. The retrospective approach includes a practical expedient that entities may apply should retrospective application be impracticable; in this case, the amendments for these issues may be applied prospectively as of the earliest date practicable. The guidance will not have a material impact upon the Company’s Consolidated Statement of Cash Flows. Credit Losses In June 2016, the FASB issued new accounting guidance on the measurement of credit losses on financial instruments. The new guidance replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. An entity will apply the new guidance through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The guidance is effective for Aon in the first quarter of 2020 and early adoption is permitted beginning in the first quarter of 2019. Aon is currently evaluating the impact that the standard will have on its Consolidated Financial Statements, as well as the method of transition and period of adoption. Share-based Compensation In March 2016, the FASB issued new accounting guidance on several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The new guidance requires all excess tax benefits and tax deficiencies to be recognized as income tax expense or benefit in the income statement and treated as discrete items in the reporting period. Further, excess tax benefits are required to be classified along with other income tax cash flows as an operating activity. Amendments related to the timing of when excess tax benefits are recognized, minimum statutory withholding requirements, forfeitures, and intrinsic value should be applied using a modified retrospective transition method by means of a cumulative-effect adjustment to equity as of the beginning of the period in which the guidance is adopted. Amendments related to the presentation of employee taxes paid on the statement of cash flows when an employer withholds shares to meet the minimum statutory withholding requirement should be applied retrospectively. Amendments requiring recognition of excess tax benefits and tax deficiencies in the income statement and the practical expedient for estimating expected term should be applied prospectively. An entity may elect to apply the amendments related to the presentation of excess tax benefits on the statement of cash flows using either a prospective transition method or a retrospective transition method. The guidance is effective for Aon in the first quarter of 2017 and early adoption is permitted. Upon the adoption of this guidance on January 1, 2017, the Company expects to recognize an increase to Deferred tax assets of approximately $49 million through a cumulative-effect adjustment to Retained earnings for excess tax benefits not previously recognized. On a prospective basis, excess tax benefits will be recognized in the Consolidated Statements of Income each quarter as share-based payment awards vest, which could have a significant impact on Income tax expense in the Consolidated Statement of Income and Additional paid-in capital in the Consolidated Statements of Financial Position. The impact will be driven, in part, by the difference between the Company’s share price at the time share-based payment transactions vest or options are exercised in the future periods and the fair value of the awards at the date of grant. Amendments related to the presentation of excess tax benefits on the Consolidated Statement of Cash Flows, which will be applied prospectively, may have a significant impact on Cash Flows from Operating Activities and Cash Flows from Financing Activities in the Consolidated Statements of Cash Flows. The impact will also be driven by the Company’s share price at the time share-based payment transactions vest in future periods. The Company does not expect other elements of the guidance to have a material impact on its Consolidated Financial Statements. Leases In February 2016, the FASB issued new accounting guidance on leases, which requires lessees to recognize assets and liabilities for most leases. Under the new guidance, a lessee should recognize in the Consolidated Statement of Financial Position a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee have not significantly changed from currently effective U.S. GAAP. The new standard will be effective for the Company in the first quarter of 2019, with early application permitted. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply. These practical expedients relate to the identification and classification of leases that commenced before the effective date, initial direct costs for leases that commenced before the effective date, and the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset. Aon is currently evaluating the impact the standard will have on its Consolidated Financial Statements, as well as the method of transition and period of adoption. Financial Assets and Liabilities In January 2016, the FASB issued new accounting guidance on recognition and measurement of financial assets and financial liabilities. The amendments in the new guidance make targeted improvements, which include the requirement to measure equity investments with readily determinable fair values at fair value through net income, simplification of the impairment assessment for equity investments without readily determinable fair values, adjustments to existing and additional disclosure requirements, and additional tax considerations. An entity should apply the amendments by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values (including disclosure requirements) should be applied prospectively to equity investments that exist as of the date of adoption of the guidance. The guidance is effective for the Company in the first quarter of 2018 and early adoption is permitted. Aon is currently evaluating the impact that the standard will have on the its Consolidated Financial Statements, as well as the method of transition and period of adoption. Presentation of Deferred Taxes In November 2015, the FASB issued new accounting guidance on the balance sheet presentation of deferred taxes, which requires that deferred tax liabilities and assets be classified as non-current. Aon early adopted this guidance in the second quarter of 2016 and retrospectively applied its requirements to all periods presented. For the year ended December 31, 2015, Aon reclassified its current deferred tax positions to non-current and netted the new balances by jurisdiction, which increased Deferred tax assets by $93 million and decreased Deferred tax liabilities by $139 million on the Consolidated Statement of Financial Position. Debt Issuance Costs In April 2015, the FASB issued new accounting guidance on the presentation of debt issuance costs, which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the associated debt liability. Debt issuance costs related to its line-of-credit arrangements will be shown within Other non-current assets. This guidance was effective for Aon in the first quarter of 2016, which required retrospective application to prior year comparable periods. For the year ended December 31, 2015, Aon reclassified $4 million from Other current assets and $33 million from Other non-current assets to Long-term debt on the Consolidated Statement of Financial Position. Consolidations In February 2015, the FASB issued new accounting guidance on consolidations, which will eliminate the deferral granted to investment companies from applying the variable interest entities guidance and make targeted amendments to the current consolidation guidance. The new guidance applies to all entities involved with limited partnerships or similar entities and requires re-evaluation of these entities under the revised guidance, which could change previous consolidation conclusions. The guidance was effective for the Company in the first quarter of 2016. The adoption of this guidance did not have a material impact on the Company’s Consolidated Financial Statements. Revenue Recognition In May 2014, the FASB issued new accounting guidance on revenue from contracts with customers, which, when effective, will supersede nearly all existing revenue recognition guidance under U.S. GAAP. The core principal of the standard is that an entity should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The standard is effective for Aon in the first quarter of 2018 and early adoption is permitted beginning the first quarter of 2017. Two methods of transition are permitted upon adoption: full retrospective and modified retrospective. Under the full retrospective method, prior periods would be restated under the new revenue standard, providing a comparable view across all periods presented. Under the modified retrospective method, prior periods would not be restated. Rather, revenues and other disclosures for pre-2018 periods would be provided in the notes to the financial statements as previously reported under the current revenue standard. The Company will adopt this standard in the first quarter of 2018 and is evaluating both methods of transition; however, it is currently anticipated that a modified retrospective adoption approach will be used. A preliminary assessment to determine the impacts of the new accounting standard has been performed. The Company is currently implementing accounting and operational processes which will be impacted by the new standard, but is unable to provide information on quantitative impacts at this time. However, the primary impacts of the new standard to the Company’s product and service lines are anticipated to be as follows: The Company currently recognizes revenue for certain brokerage activities within the Risk Solutions business over a period of time either due to the transfer of value to customers or as the remuneration becomes determinable. Under the new standard, this revenue will be recognized on the effective date of the associated policies when control of the policy transfers to the customer. As a result, revenue from these arrangements will be recognized in earlier periods under the new standard in comparison to the current guidance and will change the timing and amount of revenue recognized for annual and interim periods. Similarly, the Company is currently assessing the timing and measurement of revenue recognition under the new standard for outsourcing and consulting operations within the HR Solutions business. Additionally, the new standard provides guidance on accounting for certain revenue-related costs including when to capitalize costs associated with obtaining and fulfilling a contract. These costs are currently expensed as incurred under existing U.S. GAAP. These assets recognized for the costs to obtain and/or fulfill a contract will be amortized on a on a systematic basis that is consistent with the transfer of the services to which the asset relates. The Company is quantifying the nature and amount of costs that would qualify for capitalization and the amount of amortization that will be recognized in each period. |
Basis of Presentation (Tables) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Prior Period Adjustments | The impact to the Consolidated Statements of Cash Flows previously filed in unaudited Quarterly Reports on Form 10-Q is as follows (in millions):
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Summary of Significant Accounting Principles and Practices (Tables) |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||
Schedule of estimated useful lives of assets | Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets, which are generally as follows:
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Other Financial Data (Tables) |
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Other Financial Data [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income (Expense) | Other income consists of the following (in millions):
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Schedule of Allowance for Doubtful Accounts | An analysis of the allowance for doubtful accounts is as follows (in millions):
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Schedule of Other Current Assets | The components of Other current assets are as follows (in millions):
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Components of Fixed assets, net | The components of Fixed assets, net are as follows (in millions):
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Schedule of Other Non-current Assets | The components of Other non-current assets are as follows (in millions):
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Schedule of Other Current Liabilities | The components of Other current liabilities are as follows (in millions):
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Schedule of Other Non-current Liabilities | The components of Other non-current liabilities are as follows (in millions):
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Acquisitions and Dispositions of Businesses (Tables) |
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Business Combinations and Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of number of acquisitions | The number of acquisitions completed within each reportable segment is as follows:
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Consideration transferred and preliminary value of intangible assets | The following table includes the preliminary fair values of consideration transferred and intangible assets acquired as a result of the Company’s acquisitions (in millions):
The following table includes the preliminary fair values of consideration transferred, assets acquired, and liabilities assumed as a result of the Company’s acquisitions (in millions):
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Schedule of number of disposals | The number of dispositions completed within each reportable segment is as follows:
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Goodwill and Other Intangible Assets (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of changes in the net carrying amount of goodwill by operating segment | The changes in the net carrying amount of goodwill by reportable segment for the years ended December 31, 2016 and 2015, respectively, are as follows (in millions):
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Schedule of other intangible assets by asset class | Other intangible assets by asset class are as follows (in millions):
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Schedule of estimated future amortization expense on intangible assets | The estimated future amortization for finite-lived intangible assets as of December 31, 2016 is as follows (in millions):
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Debt (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of outstanding debt | The following is a summary of outstanding debt (in millions):
(1) Amended to reflect the adoption of new guidance related to the presentation of debt issuance costs as described in Note 2 “Summary of Significant Accounting Principles and Practices.” |
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Repayments of long-term debt | Repayments of total debt are as follows (in millions):
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Lease Commitments (Tables) |
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Leases, Operating [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rental expenses for operating leases | Rental expenses (including amounts applicable to taxes, insurance and maintenance) for operating leases are as follows (in millions):
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Future minimum rental payments under operating leases for continuing operations that have initial or remaining noncancelable lease terms in excess of one year, net of sublease rental income | At December 31, 2016, future minimum rental payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year are as follows (in millions):
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Income Taxes (Tables) |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income from continuing operations before income tax | Income before income tax and the provision for income tax consist of the following (in millions):
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Reconciliation of the income tax provisions based on the U.S. statutory corporate tax rate to the provisions reflected in the Consolidated Financial Statements | The reconciliation to the provisions reflected in the Consolidated Financial Statements is as follows:
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Components of Aon's deferred tax assets and liabilities | The components of the Company’s deferred tax assets and liabilities are as follows (in millions):
(1) Refer to Note 1 “Basis of Presentation” for details regarding the Revision of Previously Issued Financial Statements. |
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Deferred income taxes (assets and liabilities netted by jurisdiction) as classified in the Consolidated Statements of Financial Position | Deferred income taxes (assets and liabilities have been netted by jurisdiction) have been classified in the Consolidated Statements of Financial Position as follows (in millions):
(2) For the year ended December 31, 2015, Aon reclassified its current deferred tax positions to non-current and netted the new balances by jurisdiction. Refer to Note 2 “Summary of Significant Accounting Principles and Practices” for additional details. |
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Summary of operating and capital loss carryforwards | The Company had the following operating and capital loss carryforwards (in millions):
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Reconciliation of the beginning and ending amount of unrecognized tax benefits | The following is a reconciliation of the Company’s beginning and ending amount of uncertain tax positions (in millions):
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Shareholders' Equity (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of components of weighted average number of shares outstanding | Weighted average shares outstanding are as follows (in millions):
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Components of Accumulated other comprehensive loss, net of related tax | Changes in Accumulated other comprehensive loss by component, net of related tax, are as follows (in millions):
|
Employee Benefits (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expense recognized for defined contribution savings plans, included in compensation and benefits and discontinued operations in the consolidated statements of income | The expense recognized for these plans is included in Compensation and benefits in the Consolidated Statements of Income, as follows (in millions):
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Pension Plans, Defined Benefit | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of the changes in the benefit obligations and fair value of assets and a statement of the funded status | The following tables provide a reconciliation of the changes in the projected benefit obligations and fair value of assets for the years ended December 31, 2016 and 2015 and a statement of the funded status as of December 31, 2016 and 2015, for the material U.K. plans, U.S. plans and other major plans, which are located in the Netherlands and Canada. These plans represent approximately 92% of the Company’s projected benefit obligations.
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Amounts recognized in the Consolidated Statements of Financial Position | Amounts recognized in the Consolidated Statements of Financial Position consist of (in millions):
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Amounts recognized in Accumulated other comprehensive loss that have not yet been recognized as components of net periodic benefit cost | Amounts recognized in Accumulated other comprehensive loss (income) that have not yet been recognized as components of net periodic benefit cost at December 31, 2016 and 2015 consist of (in millions):
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Components of net periodic benefit cost for the pension plans | The following table provides the components of net periodic benefit (income) cost for the plans (in millions):
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Weighted-average assumptions used to determine future benefit obligations and net periodic benefit cost | The weighted-average assumptions used to determine benefit obligations are as follows:
The weighted-average assumptions used to determine the net periodic benefit cost are as follows:
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Estimated Future Benefit Payments | Estimated future benefit payments for plans are as follows at December 31, 2016 (in millions):
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U.S. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair values of pension plan assets | The fair values of the Company’s U.S. pension plan assets at December 31, 2016 and December 31, 2015, by asset category, are as follows (in millions):
|
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U.K. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair values of pension plan assets | The fair values of the Company’s major U.K. pension plan assets at December 31, 2016 and December 31, 2015, by asset category, are as follows (in millions):
|
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Changes in the Level 3 fair-value category | The following table presents the changes in the Level 3 fair-value category in the Company’s U.K. pension plans for the years ended December 31, 2016 and December 31, 2015 (in millions):
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U.S. and Canadian Other Post-Retirement Benefits | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of the changes in the benefit obligations and fair value of assets and a statement of the funded status | The following table provides an overview of the accumulated projected benefit obligation, fair value of plan assets, funded status and net amount recognized as of December 31, 2016 and 2015 for the Company’s other significant post-retirement benefit plans located in the U.S. and Canada (in millions):
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Fair values of pension plan assets | The fair values of the Company’s other major pension plan assets at December 31, 2016 and December 31, 2015, by asset category, are as follows (in millions):
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Other information related to the Company's other post-retirement benefit plans | Other information related to the Company’s other post-retirement benefit plans are as follows:
|
Share-Based Compensation Plans (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense recognized in continuing operations | The following table summarizes share-based compensation expense recognized in the Consolidated Statements of Income in Compensation and benefits (in millions):
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Restricted share unit activity | A summary of the status of the Company’s RSUs is as follows (shares in thousands):
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Performance-based plans | Information regarding the Company’s target PSAs granted and shares that would be issued at current performance levels for PSAs granted during the years ended December 31, 2016, 2015, and 2014, respectively, is as follows (shares in thousands, dollars in millions, except fair value):
|
Derivatives and Hedging (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notional and fair values of derivative instruments | The notional and fair values of derivative instruments are as follows (in millions):
Offsetting of financial assets and derivatives assets are as follows (in millions):
Offsetting of financial liabilities and derivative liabilities are as follows (in millions):
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Derivative gains (losses) | The amounts of derivative gains (losses) recognized in the Consolidated Financial Statements are as follows (in millions):
|
Fair Value Measurements and Financial Instruments (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of assets and liabilities that are measured at fair value on a recurring basis | The following tables present the categorization of the Company’s assets and liabilities that are measured at fair value on a recurring basis at December 31, 2016 and December 31, 2015, respectively (in millions):
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Schedule of financial instruments where the carrying amounts and fair values differ | The fair value of Long-term debt is classified as Level 2 of the fair value hierarchy. The following table discloses the Company’s financial instruments where the carrying amounts and fair values differ (in millions):
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Segment Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | Aon’s total revenue is as follows (in millions):
Fiduciary investment income by segment is as follows (in millions):
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Revenue from External Customers by Products and Services | Commissions, fees and other revenues by product are as follows (in millions):
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Schedule of reconciliation of segment income before tax to income from continuing operations before income taxes | A reconciliation of segment operating income before tax to income before income taxes is as follows (in millions):
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Schedule of consolidated revenue by geographic area | Consolidated Revenue by geographic area, which is attributed on the basis of where the services are performed, is as follows (in millions):
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Schedule of consolidated non-current assets by geographic area | Consolidated Non-current assets by geographic area are as follows (in millions):
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Guarantee of Registered Securities (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Guarantee of Registered Securities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Statement of Income | Condensed Consolidating Statement of Income
Condensed Consolidating Statement of Income
Condensed Consolidating Statement of Income
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Condensed Consolidating Statement of Comprehensive Income | Condensed Consolidating Statement of Comprehensive Income
Condensed Consolidating Statement of Comprehensive Income
Condensed Consolidating Statement of Comprehensive Income
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Condensed Consolidating Statement of Financial Position | Condensed Consolidating Statement of Financial Position
Condensed Consolidating Statement of Financial Position
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Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows
(1) Advances from (to) affiliates and other includes activity related to the Company’s intercompany and cash pooling arrangements. Condensed Consolidating Statement of Cash Flows
(1) Advances from (to) affiliates and other includes activity related to the Company’s intercompany and cash pooling arrangements. Condensed Consolidating Statement of Cash Flows
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Quarterly Financial Data (Unaudited) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Data | Selected quarterly financial data for the years ended December 31, 2016 and 2015 as reported, the effect of the change, and selected quarterly financial data for the years ended December 31, 2016 and 2015 as revised, are as follows (in millions, except per share data):
|
Other Financial Data - Schedule of Other Income (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Other Financial Data [Abstract] | |||
Equity earnings | $ 13 | $ 13 | $ 12 |
Net gain on disposals of businesses | 39 | 82 | 24 |
Foreign currency remeasurement (loss) gain | (2) | 30 | 18 |
(Loss) income on financial instruments | (14) | (24) | (15) |
Other | 0 | (1) | 5 |
Other income | $ 36 | $ 100 | $ 44 |
Other Financial Data - Schedule of Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Balance at January 1 | $ 58 | $ 74 | $ 90 |
Provision charged to operations | 11 | 13 | 12 |
Accounts written off, net of recoveries | (14) | (34) | (33) |
Foreign currency translation | 3 | 5 | 5 |
Balance at December 31 | $ 58 | $ 58 | $ 74 |
Other Financial Data - Schedule of Other Current Assets (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Other Financial Data [Abstract] | ||
Taxes receivable | $ 100 | $ 94 |
Prepaid expenses | 125 | 130 |
Deferred project costs | 87 | 92 |
Other | 39 | 13 |
Total Other Current Assets | $ 351 | $ 329 |
Other Financial Data - Components of Fixed Assets, Net (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Fixed Assets, net | |||
Fixed assets, gross | $ 2,325 | $ 2,381 | |
Less: Accumulated depreciation | 1,560 | 1,616 | |
Fixed assets, net | 765 | 765 | |
Depreciation expense including software amortization | 232 | 229 | $ 242 |
Software | |||
Fixed Assets, net | |||
Fixed assets, gross | 948 | 1,095 | |
Leasehold improvements | |||
Fixed Assets, net | |||
Fixed assets, gross | 452 | 422 | |
Computer equipment | |||
Fixed Assets, net | |||
Fixed assets, gross | 417 | 358 | |
Furniture, fixtures and equipment | |||
Fixed Assets, net | |||
Fixed assets, gross | 300 | 315 | |
Construction in progress | |||
Fixed Assets, net | |||
Fixed assets, gross | 93 | 76 | |
Other | |||
Fixed Assets, net | |||
Fixed assets, gross | $ 115 | $ 115 |
Other Financial Data - Schedule of Other Non-current Assets (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Other Financial Data [Abstract] | ||
Deferred project costs | $ 183 | $ 210 |
Investments | 119 | 135 |
Taxes receivable | 82 | 82 |
Other | 170 | 165 |
Total Other Non-Current Assets | $ 554 | $ 592 |
Other Financial Data - Schedule of Other Current Liabilities (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Other Financial Data [Abstract] | ||
Deferred revenue | $ 393 | $ 394 |
Taxes payable | 78 | 94 |
Other | 402 | 331 |
Total Other Current Liabilities | $ 873 | $ 819 |
Other Financial Data - Schedule of Other Non-Current Liabilities (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Other Financial Data [Abstract] | ||
Taxes payable | $ 288 | $ 223 |
Leases | 169 | 166 |
Deferred revenue | 140 | 159 |
Compensation and benefits | 56 | 59 |
Other | 191 | 162 |
Total Other Non-Current Liabilities | $ 844 | $ 769 |
Acquisitions and Dispositions of Businesses - Dispositions (Details) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016
USD ($)
disposal
|
Dec. 31, 2015
USD ($)
disposal
|
Dec. 31, 2014
USD ($)
disposal
|
|
Dispositions | |||
Net gain on disposals of businesses | $ | $ 39 | $ 82 | $ 24 |
Disposal Group, Not Discontinued Operations | |||
Dispositions | |||
Number of dispositions | 5 | 7 | 2 |
Disposal Group, Not Discontinued Operations | Risk Solutions | |||
Dispositions | |||
Number of dispositions | 4 | 4 | 2 |
Disposal Group, Not Discontinued Operations | HR Solutions | |||
Dispositions | |||
Number of dispositions | 1 | 3 | 0 |
Goodwill and Other Intangible Assets - Schedule of estimated future amortization expense on intangible assets (Details) $ in Millions |
Dec. 31, 2016
USD ($)
|
---|---|
Finite-Lived Intangible Assets [Line Items] | |
2017 | $ 259 |
2018 | 209 |
2019 | 180 |
2020 | 158 |
2021 | 119 |
Thereafter | 300 |
Total future amortization of intangible assets | 1,225 |
Risk Solutions | |
Finite-Lived Intangible Assets [Line Items] | |
2017 | 123 |
2018 | 118 |
2019 | 107 |
2020 | 97 |
2021 | 66 |
Thereafter | 239 |
Total future amortization of intangible assets | 750 |
HR Solutions | |
Finite-Lived Intangible Assets [Line Items] | |
2017 | 136 |
2018 | 91 |
2019 | 73 |
2020 | 61 |
2021 | 53 |
Thereafter | 61 |
Total future amortization of intangible assets | $ 475 |
Debt - Repayments of long-term debt (Details) $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2016
USD ($)
| |
Debt Disclosure [Abstract] | |
2017 | $ 336 |
2018 | 278 |
2019 | 0 |
2020 | 600 |
2021 | 400 |
Thereafter | 4,700 |
Total Repayments | 6,314 |
Unamortized discount, premium, and debt issuance cost | (109) |
Long-term Debt | $ 6,205 |
Lease Commitments (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Rental expenses for operating leases | |||
Rental expense | $ 400 | $ 454 | $ 455 |
Less: Sub lease rental income | (64) | (83) | (75) |
Net rental expense | 336 | $ 371 | $ 380 |
Future minimum rental payments under operating leases | |||
Gross rental commitment 2017 | 355 | ||
Gross rental commitment 2018 | 317 | ||
Gross rental commitment 2019 | 283 | ||
Gross rental commitment 2020 | 237 | ||
Gross rental commitment 2021 | 214 | ||
Gross rental commitment thereafter | 696 | ||
Total gross rental commitments | 2,102 | ||
Sublease income 2017 | (55) | ||
Sublease income 2018 | (44) | ||
Sublease income 2019 | (38) | ||
Sublease income 2020 | (34) | ||
Sublease income 2021 | (33) | ||
Sublease income thereafter | (47) | ||
Total future sublease income | (251) | ||
Net rental commitment 2017 | 300 | ||
Net rental commitment 2018 | 273 | ||
Net rental commitment 2019 | 245 | ||
Net rental commitment 2020 | 203 | ||
Net rental commitment 2021 | 181 | ||
Net rental commitment thereafter | 649 | ||
Total minimum payments required | $ 1,851 |
Income Taxes - Reconciliation of the income tax provisions based on the U.S. statutory corporate tax rate to the provisions reflected in the Consolidated Financial Statements (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Reconciliation of the income tax provisions based on the statutory corporate tax rate to the provisions reflected in the Consolidated Financial Statements | |||
Statutory tax rate | 20.00% | 20.30% | 21.50% |
U.S. state income taxes, net of U.S. federal benefit | 0.70% | 0.50% | 1.50% |
Taxes on international operations | (8.50%) | (6.00%) | (8.90%) |
Nondeductible expenses | 1.20% | 2.20% | 1.70% |
Adjustments to prior year tax requirements | (1.00%) | (1.30%) | 0.90% |
Adjustments to valuation allowances | (1.80%) | (1.20%) | 0.60% |
Change in uncertain tax positions | 3.00% | 1.40% | 1.70% |
Other — net | 0.70% | (0.10%) | (0.10%) |
Effective tax rate | 14.30% | 15.80% | 18.90% |
Income Taxes - Components of Aon's deferred tax assets and liabilities (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Deferred tax assets: | ||
Employee benefit plans | $ 661 | $ 635 |
Net operating/capital loss and tax credit carryforwards | 399 | 336 |
Accrued interest | 166 | 293 |
Other accrued expenses | 102 | 98 |
Brokerage fee arrangements (1) | 66 | 66 |
Deferred revenue | 57 | 65 |
Investment basis differences | 48 | 56 |
Other | 60 | 57 |
Total | 1,559 | 1,606 |
Valuation allowance on deferred tax assets | (130) | (162) |
Total | 1,429 | 1,444 |
Deferred tax liabilities: | ||
Intangibles and property, plant and equipment | (982) | (961) |
Other accrued expenses | (101) | (99) |
Deferred costs | (20) | (30) |
Unrealized foreign exchange gains | (26) | (29) |
Unremitted earnings | (29) | (18) |
Other | (50) | (44) |
Total | (1,208) | (1,181) |
Net deferred tax asset | $ 221 | $ 263 |
Income Taxes - Deferred income taxes (assets and liabilities netted by jurisdiction) as classified in the Consolidated Statements of Financial Position (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Deferred income taxes | ||
Deferred tax assets — non-current (2) | $ 322 | $ 300 |
Deferred tax liabilities — non-current (2) | (101) | (37) |
Net deferred tax asset | $ 221 | $ 263 |
Income Taxes - Reconciliation of the beginning and ending amount of unrecognized tax benefits (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Reconciliation of the Company's beginning and ending amount of unrecognized tax benefits | ||
Balance at the beginning of the period | $ 238 | $ 211 |
Additions based on tax positions related to the current year | 36 | 31 |
Additions for tax positions of prior years | 20 | 53 |
Reductions for tax positions of prior years | (12) | (18) |
Settlements | 0 | (32) |
Business combinations | 2 | 0 |
Lapse of statute of limitations | (5) | (5) |
Foreign currency translation | (1) | (2) |
Balance at the end of the period | $ 278 | $ 238 |
Income Taxes - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Operating Loss Carryforwards [Line Items] | |||
Decrease in valuation allowance | $ 32 | ||
Adjustment to additional paid-in-capital for income tax benefits attributable to employee stock compensation | 4 | $ (126) | $ (89) |
Deferred tax liabilities from undistributed foreign earnings | 11 | ||
Undistributed foreign earnings | 2,300 | ||
Benefit realized from tax holiday granted | $ 46 | $ 23 | $ 7 |
Earnings per share impact of tax holiday | $ 0.17 | $ 0.08 | $ 0.02 |
Unrecognized tax benefits that would impact effective tax rate | $ 240 | $ 200 | $ 174 |
Accrued potential interest and penalties | 15 | 2 | 4 |
Liability recorded for interest and penalties | 48 | $ 33 | $ 31 |
U.S. Federal | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 126 | ||
U.S. State | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | $ 110 |
Income Taxes Operating Loss Carryforwards (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
UK | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 325 | $ 449 |
Capital Loss Carryforwards | 294 | 360 |
U.S. Federal | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 196 | 8 |
U.S. State | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 474 | 443 |
Other | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 350 | 245 |
Capital Loss Carryforwards | $ 218 | $ 206 |
Shareholders' Equity - Redomestication Narrative (Details) - USD ($) |
Feb. 23, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Aug. 31, 2015 |
Nov. 30, 2014 |
---|---|---|---|---|---|
Subsequent Event [Line Items] | |||||
Distributable reserves available amount | $ 1,600,000,000 | $ 2,100,000,000 | |||
Share Repurchase Program of 2014 | |||||
Subsequent Event [Line Items] | |||||
Share repurchase authorization limit | $ 5,000,000,000 | $ 5,000,000,000.0 | |||
Share Repurchase Program of 2014 | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Share repurchase authorization limit | $ 5,000,000,000.0 |
Shareholders' Equity - Schedule of weighted average shares outstanding (Details) - shares shares in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Equity [Abstract] | |||
Basic weighted-average ordinary shares outstanding | 268.1 | 280.8 | 295.5 |
Dilutive effect of potentially issuable shares | 2.2 | 3.0 | 4.1 |
Diluted weighted-average ordinary shares outstanding | 270.3 | 283.8 | 299.6 |
Shareholders' Equity - Dividends (Details) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Equity [Abstract] | |||
Cash dividends to shareholders | $ 345 | $ 323 | $ 273 |
Dividends paid per share (in dollars per share) | $ 1.29 | $ 1.15 | $ 0.92 |
Employee Benefits - Schedule of expense recognized in Compensation and benefit in the Consolidated Statements of Income (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Defined Contribution Savings Plans | |||
U.S. | $ 142 | $ 133 | $ 123 |
U.K. | 43 | 42 | 42 |
Other | 27 | 25 | 30 |
Expense recognized for defined contribution savings plans | $ 212 | $ 200 | $ 195 |
Employee Benefits - Amounts recognized in the Consolidated Statements of Financial Position (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
U.K. | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Prepaid benefit cost | $ 836 | $ 1,012 |
Accrued benefit liability | (35) | (94) |
Accumulated other comprehensive loss | 1,256 | 1,511 |
Net amount recognized | 2,057 | 2,429 |
U.S. | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Prepaid benefit cost | 0 | 0 |
Accrued benefit liability | (1,225) | (1,209) |
Accumulated other comprehensive loss | 1,618 | 1,732 |
Net amount recognized | 393 | 523 |
Other | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Prepaid benefit cost | 0 | 0 |
Accrued benefit liability | (151) | (158) |
Accumulated other comprehensive loss | 394 | 382 |
Net amount recognized | $ 243 | $ 224 |
Employee Benefits - Expected Return on Plan Assets Narrative (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
U.S. | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Expected return on plan assets, net of administration expenses | 7.81% | 7.96% | 8.80% |
Employee Benefits - Schedule of changes in Level 3 fair value for U.S. Pension Plans (Details) - U.S. - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Actual return on plan assets: | ||
Balance at the beginning of the period | $ 1,951 | $ 2,036 |
Balance at the end of the period | 1,683 | 1,951 |
Significant Unobservable Inputs (Level 3) | ||
Actual return on plan assets: | ||
Balance at the beginning of the period | 0 | |
Balance at the end of the period | $ 0 | $ 0 |
Employee Benefits - Schedule of changes in level 3 fair value for Other Plans (Details) - Other - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Actual return on plan assets: | ||
Balance at the beginning of the period | $ 1,019 | $ 1,161 |
Foreign currency impact | (35) | (133) |
Balance at the end of the period | 1,076 | 1,019 |
Alternative investments | ||
Actual return on plan assets: | ||
Balance at the beginning of the period | 9 | |
Balance at the end of the period | 9 | 9 |
Significant Unobservable Inputs (Level 3) | ||
Actual return on plan assets: | ||
Balance at the beginning of the period | 0 | |
Balance at the end of the period | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Alternative investments | ||
Actual return on plan assets: | ||
Balance at the beginning of the period | 0 | |
Balance at the end of the period | $ 0 | $ 0 |
Employee Benefits - Cash Flows Narrative (Details) $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2016
USD ($)
| |
U.S. Pension Plan | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Expected employer contributions during next fiscal year | $ 80 |
U.K. | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Expected employer contributions during next fiscal year | 87 |
Other | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Expected employer contributions during next fiscal year | $ 18 |
Employee Benefits - Estimated Future Benefit Payments (Details) $ in Millions |
Dec. 31, 2016
USD ($)
|
---|---|
U.K. | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2017 | $ 124 |
2018 | 130 |
2019 | 140 |
2020 | 148 |
2021 | 156 |
2022 - 2025 | 892 |
U.S. Pension Plan | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2017 | 168 |
2018 | 180 |
2019 | 187 |
2020 | 191 |
2021 | 185 |
2022 - 2025 | 893 |
Other | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2017 | 39 |
2018 | 40 |
2019 | 40 |
2020 | 41 |
2021 | 42 |
2022 - 2025 | $ 228 |
Employee Benefits - Overview of the accumulated benefit obligation, fair value of plan assets, funded status and net amount recognized for U.S. and Canadian Other Post-Retirement Benefits (Details) - U.S. and Canadian Other Post-Retirement Benefits - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Accumulated projected benefit obligation | $ 110 | $ 105 |
Fair value of plan assets | 18 | 18 |
Funded status | (92) | (87) |
Unrecognized prior-service credit | (3) | (3) |
Unrecognized loss | 10 | 7 |
Net amount recognized | $ (85) | $ (83) |
Employee Benefits - Schedule of Other information related to Company's other post-retirement plan's (Details) - U.S. and Canadian Other Post-Retirement Benefits - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net periodic benefit cost recognized (millions) | $ 5 | $ 6 | $ 3 |
Minimum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Weighted-average discount rate used to determine future benefit obligations | 3.71% | 3.99% | 3.83% |
Weighted-average discount rate used to determine net periodic benefit costs | 3.99% | 3.83% | 4.44% |
Maximum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Weighted-average discount rate used to determine future benefit obligations | 4.15% | 4.33% | 4.08% |
Weighted-average discount rate used to determine net periodic benefit costs | 4.33% | 4.08% | 4.95% |
Share-Based Compensation Plans - Share-based compensation expense recognized in continuing operations (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | $ 331 | $ 339 | $ 328 |
Tax benefit | 94 | 95 | 94 |
Share-based compensation expense, net of tax | 237 | 244 | 234 |
Employee share purchase plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | 12 | 11 | 9 |
Restricted share units (“RSUs”) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | 194 | 201 | 187 |
Performance share awards (PSAs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | $ 125 | $ 127 | $ 132 |
Share-Based Compensation Plans - Restricted Share Units Narrative (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average remaining amortization period (in years) | 2 years 1 month 6 days | ||
Restricted share units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of RSUs vested during the period | $ 200 | $ 196 | $ 183 |
Unamortized deferred compensation | $ 382 | ||
Restricted share units (RSUs) | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Restricted share units (RSUs) | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 5 years |
Share-Based Compensation Plans - Summary of the status of the Company's RSUs (Details) - Restricted share units (“RSUs”) - $ / shares shares in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Non-vested share awards | |||
Non-vested at beginning of period (in shares) | 7,167 | 8,381 | 9,759 |
Granted (in shares) | 2,252 | 2,459 | 2,844 |
Vested (in shares) | (2,845) | (3,385) | (3,732) |
Forfeited (in shares) | (379) | (288) | (490) |
Non-vested at end of period (in shares) | 6,195 | 7,167 | 8,381 |
Weighted Average Fair value | |||
Non-vested at beginning of period (in dollars per share) | $ 77 | $ 63 | $ 51 |
Granted (in dollars per share) | 101 | 97 | 84 |
Vested (in dollars per share) | 70 | 58 | 49 |
Forfeited (in dollars per share) | 82 | 71 | 58 |
Non-vested at end of period (in dollars per share) | $ 89 | $ 77 | $ 63 |
Share-Based Compensation Plans - Schedule of Performance-based plans (Details) - Performance-based Awards - USD ($) $ / shares in Units, shares in Thousands, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Target PSAs granted (in shares) | 783 | 993 | 816 |
Fair value (in dollars per share) | $ 100 | $ 96 | $ 81 |
Number of shares that would be issued based on current performance levels (in shares) | 777 | 1,437 | 1,540 |
Unamortized expense, based on current performance levels | $ 57 | $ 48 | $ 0 |
Share-Based Compensation Plans - Employee Share Purchase Plan Narrative (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | $ 331 | $ 339 | $ 328 |
Derivatives and Hedging - Foreign Exchange Risk Management Narrative (Details) € in Millions, $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
Dec. 31, 2016
EUR (€)
|
|
Derivative [Line Items] | ||||
(Loss) income on financial instruments | $ (14.0) | $ (24.0) | $ (15.0) | |
Derivatives designated as a hedge of the foreign currency exposure | $ 227.0 | € 217 | ||
Cash Flow Hedging | ||||
Derivative [Line Items] | ||||
Foreign currency exposures, maximum average hedging period ( in years) | 2 years | |||
Not Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Maximum length of time hedged in foreign currency undesignated hedge (in years) | 1 year | |||
Foreign exchange contracts | Not Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
(Loss) income on financial instruments | $ 0.2 | $ 8.0 | $ 18.0 |
Derivatives and Hedging - Interest Rate Risk Management (Details) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Derivative [Line Items] | |||
Gain (loss) recognized in accumulated other comprehensive income | $ 0 | $ 0 | $ 9,000,000 |
Estimated pretax losses currently included within Accumulated Other Comprehensive Loss that will be reclassified to earnings in next twelve months | 12,000,000 | ||
(Loss) income on financial instruments | (14,000,000) | (24,000,000) | (15,000,000) |
Not Designated as Hedging Instrument | Foreign exchange contracts | |||
Derivative [Line Items] | |||
(Loss) income on financial instruments | $ 200,000 | $ 8,000,000 | $ 18,000,000 |
Derivatives and Hedging - Notional and fair values of derivative instruments (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Other Current Assets | ||
Derivative [Line Items] | ||
Derivative assets | $ 6 | $ 15 |
Other Noncurrent Assets | ||
Derivative [Line Items] | ||
Derivative assets | 9 | 17 |
Other Current Liabilities | ||
Derivative [Line Items] | ||
Derivative liabilities | 7 | 13 |
Other Noncurrent Liabilities | ||
Derivative [Line Items] | ||
Derivative liabilities | 7 | 5 |
Designated as Hedging Instrument | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Notional amount | 758 | 778 |
Derivative assets | 14 | 32 |
Derivative liabilities | 13 | 18 |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional amount | 947 | 1,058 |
Derivative assets | 15 | 32 |
Derivative liabilities | 14 | 18 |
Not Designated as Hedging Instrument | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Notional amount | 189 | 280 |
Derivative assets | 1 | 0 |
Derivative liabilities | $ 1 | $ 0 |
Term of contract ( in days) | 30 days |
Derivatives and Hedging - Offsetting of financial assets and derivatives assets (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Other Current Assets | ||
Derivative [Line Items] | ||
Gross Amounts of Recognized Assets | $ 6 | $ 15 |
Net amounts of assets presented in the statement of financial position | 4 | 6 |
Other Noncurrent Assets | ||
Derivative [Line Items] | ||
Gross Amounts of Recognized Assets | 9 | 17 |
Net amounts of assets presented in the statement of financial position | 9 | 13 |
Designated as Hedging Instrument | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Gross Amounts of Recognized Assets | 14 | 32 |
Gross Amounts Offset in the Statement of Financial Position | (1) | (13) |
Net amounts of assets presented in the statement of financial position | 13 | 19 |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Gross Amounts of Recognized Assets | 15 | 32 |
Not Designated as Hedging Instrument | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Gross Amounts of Recognized Assets | $ 1 | $ 0 |
Derivatives and Hedging - Schedule of the amount of gain (loss) recognized in the Consolidated Financial Statements (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Derivative [Line Items] | |||
(Loss) income on financial instruments | $ (14.0) | $ (24.0) | $ (15.0) |
Not Designated as Hedging Instrument | Foreign exchange contracts | |||
Derivative [Line Items] | |||
(Loss) income on financial instruments | 0.2 | $ 8.0 | $ 18.0 |
Designated as Hedging Instrument | Foreign exchange contracts | |||
Derivative [Line Items] | |||
(Loss) income on financial instruments | $ 18.0 |
Fair Value Measurements and Financial Instruments - Schedule of financial instruments where the carrying amounts and fair values differ (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Fair value of financial instrument | ||
Total long-term debt | $ 5,869 | $ 5,138 |
Fair value of total debt | $ 6,264 | $ 5,386 |
Fair Value Measurements and Financial Instruments - Narrative (Details) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Fair Value Disclosures [Abstract] | |||
Unrealized gain (loss) | $ 0 | $ 0 | $ 0 |
Commitments and Contingencies - Guarantees and Indemnifications Narrative (Details) - USD ($) |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Commitments and Contingencies Disclosure [Abstract] | ||
Maximum potential funding under commitments | $ 95,000,000 | $ 104,000,000 |
Commitments and Contingencies - Letters of Credit Narrative (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Commitments and Contingencies Disclosure [Abstract] | ||
Letters of credit outstanding | $ 90 | $ 58 |
Commitments and Contingencies - Commitments Narrative (Details) - USD ($) |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Commitments and Contingencies Disclosure [Abstract] | ||
Maximum potential funding under commitments | $ 95,000,000 | $ 104,000,000 |
Commitments and Contingencies - Premium Payments (Details) - USD ($) |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Commitments and Contingencies Disclosure [Abstract] | ||
Maximum potential funding under commitments | $ 95,000,000 | $ 104,000,000 |
Segment Information - Narrative (Details) |
12 Months Ended |
---|---|
Dec. 31, 2016
segment
| |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Information - Schedule of total revenue by business segments (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 3,262 | $ 2,760 | $ 2,800 | $ 2,805 | $ 3,227 | $ 2,752 | $ 2,836 | $ 2,867 | $ 11,627 | $ 11,682 | $ 12,045 |
Commissions, fees and other | $ 3,256 | $ 2,754 | $ 2,795 | $ 2,800 | $ 3,222 | $ 2,746 | $ 2,831 | $ 2,862 | 11,605 | 11,661 | 12,019 |
Operating Segments | Risk Solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 7,485 | 7,426 | 7,834 | ||||||||
Commissions, fees and other | 7,463 | 7,405 | 7,808 | ||||||||
Operating Segments | HR Solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 4,183 | 4,303 | 4,264 | ||||||||
Commissions, fees and other | 4,183 | 4,303 | 4,264 | ||||||||
Intersegment elimination | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | (41) | (47) | (53) | ||||||||
Commissions, fees and other | $ (41) | $ (47) | $ (53) |
Segment Information - Schedule of fiduciary investment income by business segment (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Segment Reporting Information [Line Items] | |||||||||||
Fiduciary investment income | $ 6 | $ 6 | $ 5 | $ 5 | $ 5 | $ 6 | $ 5 | $ 5 | $ 22 | $ 21 | $ 26 |
HR Solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Fiduciary investment income | 0 | 0 | 0 | ||||||||
Risk Solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Fiduciary investment income | $ 22 | $ 21 | $ 26 |
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Jun. 30, 2016 |
Sep. 30, 2016 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||
Commissions, fees and other revenue | $ 3,256 | $ 2,754 | $ 2,795 | $ 2,800 | $ 3,222 | $ 2,746 | $ 2,831 | $ 2,862 | $ 11,605 | $ 11,661 | $ 12,019 | ||
Fiduciary investment income | 6 | 6 | 5 | 5 | 5 | 6 | 5 | 5 | 22 | 21 | 26 | ||
Total revenue | 3,262 | 2,760 | 2,800 | 2,805 | 3,227 | 2,752 | 2,836 | 2,867 | 11,627 | 11,682 | 12,045 | ||
Operating income | 568 | 436 | 439 | 463 | 656 | 423 | 308 | 461 | 1,906 | 1,848 | 1,966 | ||
Net income | 459 | 326 | 308 | 337 | 540 | 311 | 214 | 357 | $ 645 | $ 971 | 1,430 | 1,422 | 1,431 |
Less: Net income attributable to noncontrolling interests | 7 | 7 | 8 | 12 | 6 | 8 | 10 | 13 | 34 | 37 | 34 | ||
Net income attributable to Aon shareholders | $ 452 | $ 319 | $ 300 | $ 325 | $ 534 | $ 303 | $ 204 | $ 344 | $ 1,396 | $ 1,385 | $ 1,397 | ||
PER SHARE DATA | |||||||||||||
Basic net income per share attributable to Aon shareholders (in dollars per share) | $ 1.70 | $ 1.19 | $ 1.12 | $ 1.20 | $ 1.94 | $ 1.08 | $ 0.72 | $ 1.21 | $ 5.21 | $ 4.93 | |||
Diluted net income per share attributable to Aon shareholders (in dollars per share) | $ 1.68 | $ 1.18 | $ 1.11 | $ 1.19 | $ 1.91 | $ 1.07 | $ 0.71 | $ 1.20 | $ 5.16 | $ 4.88 | |||
Scenario, Previously Reported | |||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||
Commissions, fees and other revenue | $ 3,317 | $ 2,740 | $ 2,761 | $ 2,787 | $ 3,283 | $ 2,736 | $ 2,800 | $ 2,842 | $ 11,605 | $ 11,661 | |||
Fiduciary investment income | 6 | 6 | 5 | 5 | 5 | 6 | 5 | 5 | 22 | 21 | |||
Total revenue | 3,323 | 2,746 | 2,766 | 2,792 | 3,288 | 2,742 | 2,805 | 2,847 | 11,627 | 11,682 | |||
Operating income | 629 | 422 | 405 | 450 | 717 | 413 | 277 | 441 | 1,906 | 1,848 | |||
Net income | 509 | 314 | 280 | 327 | 590 | 303 | 188 | 341 | $ 607 | $ 921 | 1,430 | 1,422 | |
Less: Net income attributable to noncontrolling interests | 7 | 7 | 8 | 12 | 6 | 8 | 10 | 13 | 34 | 37 | |||
Net income attributable to Aon shareholders | $ 502 | $ 307 | $ 272 | $ 315 | $ 584 | $ 295 | $ 178 | $ 328 | $ 1,396 | $ 1,385 | |||
PER SHARE DATA | |||||||||||||
Basic net income per share attributable to Aon shareholders (in dollars per share) | $ 1.89 | $ 1.15 | $ 1.01 | $ 1.16 | $ 2.12 | $ 1.05 | $ 0.63 | $ 1.15 | $ 5.21 | $ 4.93 | |||
Diluted net income per share attributable to Aon shareholders (in dollars per share) | $ 1.87 | $ 1.14 | $ 1.01 | $ 1.15 | $ 2.09 | $ 1.04 | $ 0.62 | $ 1.14 | $ 5.16 | $ 4.88 | |||
Restatement Adjustment | |||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||
Commissions, fees and other revenue | $ (61) | $ 14 | $ 34 | $ 13 | $ (61) | $ 10 | $ 31 | $ 20 | $ 0 | $ 0 | |||
Fiduciary investment income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Total revenue | (61) | 14 | 34 | 13 | (61) | 10 | 31 | 20 | 0 | 0 | |||
Operating income | (61) | 14 | 34 | 13 | (61) | 10 | 31 | 20 | 0 | 0 | |||
Net income | (50) | 12 | 28 | 10 | (50) | 8 | 26 | 16 | 0 | 0 | |||
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Net income attributable to Aon shareholders | $ (50) | $ 12 | $ 28 | $ 10 | $ (50) | $ 8 | $ 26 | $ 16 | $ 0 | $ 0 | |||
PER SHARE DATA | |||||||||||||
Basic net income per share attributable to Aon shareholders (in dollars per share) | $ (0.19) | $ 0.04 | $ 0.11 | $ 0.04 | $ (0.18) | $ 0.03 | $ 0.09 | $ 0.06 | $ 0.00 | $ 0.00 | |||
Diluted net income per share attributable to Aon shareholders (in dollars per share) | $ (0.19) | $ 0.04 | $ 0.10 | $ 0.04 | $ (0.18) | $ 0.03 | $ 0.09 | $ 0.06 | $ 0.00 | $ 0.00 |
Subsequent Event - Disposition of Benefits Administration and Business Process Outsourcing (Details) - Tempo Business - Subsequent Event $ in Millions |
Feb. 09, 2017
USD ($)
agreement
|
---|---|
Subsequent Event [Line Items] | |
Number Of Commercial Agreements | agreement | 2 |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | |
Subsequent Event [Line Items] | |
Purchase price | $ 4,300 |
Deferred consideration | $ 500 |
Deferred consideration payment installments | 20.00% |
Buyer required IRR to pay deferred consideration | 15.00% |
Sponsor required return on cash proceeds | 225.00% |
Customary transaction marketing period before close | 15 days |
Agreement termination fee due | $ 215 |
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