Shareholders’ Equity

Ordinary Shares

Aon has a share repurchase program authorized by the Company’s Board of Directors (the “Repurchase Program”). The Repurchase Program was established in April 2012 with up to $5.0 billion in authorized repurchases, and was increased by $5.0 billion in authorized repurchases in each of November 2014 and February 2017 for a total of $15.0 billion in repurchase authorizations.

Under the Repurchase Program, Class A Ordinary 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.

The following table summarizes the Company’s Share Repurchase activity (in millions, except per share data):



	Three months ended June 30				Six months ended June 30
	2018		2017 ⁽¹⁾		2018		2017 ⁽¹⁾
Shares repurchased	2.8		8.0		6.7		9.1
Average price per share	$	141.23	$	128.54	$	141.06	$	126.85
Costs recorded to retained earnings:
Total repurchase cost	$	400	$	1,030	$	950	$	1,154
Additional associated costs	2		5		5		6
Total costs recorded to retained earnings	$	402	$	1,035	$	955	$	1,160


(1)	Included in the 8.0 million shares and 9.1 million shares repurchased during the three and six months ended June 30, 2017, respectively, were 0.5 million shares that did not settle until July 2017. These shares were settled at an average price per share of $133.24 and total cost of $60 million.

At June 30, 2018, the remaining authorized amount for share repurchase under the Repurchase Program was $4.5 billion. Under the Repurchase Program, the Company has repurchased a total of 115.0 million shares for an aggregate cost of approximately $10.5 billion.

Net Income Per Share

Weighted average ordinary shares outstanding are as follows (in millions):



	Three months ended June 30		Six months ended June 30
	2018	2017	2018	2017
Basic weighted average ordinary shares outstanding	246.0	262.4	247.2	263.6
Dilutive effect of potentially issuable shares	1.4	—	1.6	2.1
Diluted weighted average ordinary shares outstanding	247.4	262.4	248.8	265.7

Potentially issuable shares are not included in the computation of diluted net income per share if its inclusion would be antidilutive. There were no shares excluded from the calculation for the three and six months ended June 30, 2018. Due to the net loss for the three months ended June 30, 2017, 1.9 million shares were excluded from the calculation. There were 0.2 million shares excluded from the calculation for the six months ended June 30, 2017.

Accumulated Other Comprehensive Loss

Changes in Accumulated other comprehensive loss by component, net of related tax, are as follows (in millions):



	Change in Fair Value of Financial Instruments ⁽¹⁾			Foreign Currency Translation Adjustments			Postretirement Benefit Obligation ⁽²⁾			Total
Balance at December 31, 2017	$	(25	)	$	(879	)	$	(2,592	)	$	(3,496	)
Adoption of new accounting guidance ⁽³⁾	(1		)	—			—			(1		)
Balance at January 1, 2018	(26		)	(879		)	(2,592		)	(3,497		)
Other comprehensive income (loss) before reclassifications, net	8			(210		)	110			(92		)
Amounts reclassified from accumulated other comprehensive loss:
Amounts reclassified from accumulated other comprehensive income	7			—			77			84
Tax expense	(2		)	—			(17		)	(19		)
Amounts reclassified from accumulated other comprehensive income, net	5			—			60			65
Net current period other comprehensive income (loss)	13			(210		)	170			(27		)
Balance at June 30, 2018	$	(13	)	$	(1,089	)	$	(2,422	)	$	(3,524	)


(1)	Reclassifications from this category included in Accumulated other comprehensive loss are recorded in Other income (expense), Other general expenses, and Compensation and benefits. Refer to Note 15 “Derivatives and Hedging” for further information regarding the Company’s derivative and hedging activity.


(2)	Reclassifications from this category included in Accumulated other comprehensive loss are recorded in Other income (expense).


(3)	Refer to Note 2 “Accounting Principles and Practices” for further information.