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Shareholders' Equity
 12 Months Ended
Dec. 31, 2018
Equity [Abstract]  
Shareholders' Equity
Shareholders’ Equity
Distributable Reserves
As a company incorporated in England and Wales, Aon 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, among other methods, through a reduction in share capital approved by the courts of England and Wales. Distributable reserves are not directly linked to a U.S. GAAP reported amount (e.g., retained earnings). As of December 31, 2018 and 2017, the Company had distributable reserves in excess of $2.2 billion and $1.2 billion, respectively.
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 $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):
 
 
Twelve months ended December 31
 
 
2018
 
2017 (1)
Shares repurchased
 
10.0

 
18.0

Average price per share
 
$
143.94

 
$
133.67

Costs recorded to retained earnings
 
 
 
 
Total repurchase cost
 
$
1,447

 
$
2,403

Additional associated costs
 
7

 
12

Total costs recorded to retained earnings
 
$
1,454

 
$
2,415

(1)
Included in the 18.0 million shares repurchased during the twelve months ended December 31, 2017 were 0.1 million shares that did not settle until January 2018. These shares were settled at an average price per share of $134.41 and total cost of $15.9 million.
At December 31, 2018, the remaining authorized amount for share repurchase under the Repurchase Program was $4.0 billion. Under the Repurchase Program, the Company has repurchased a total of 118.3 million shares for an aggregate cost of approximately $11.0 billion.
Net Income Per Share
Weighted average ordinary shares outstanding are as follows (in millions):
Years ended December 31
2018
 
2017
 
2016
Basic weighted-average ordinary shares outstanding
245.2

 
258.5

 
268.1

Dilutive effect of potentially issuable shares
1.8

 
2.2

 
2.2

Diluted weighted-average ordinary shares outstanding
247.0

 
260.7

 
270.3


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 in 2018, 2017, or 2016.
Dividends
During 2018, 2017, and 2016, the Company paid dividends of $382 million, $364 million, and $345 million, respectively, to holders of its Class A Ordinary Shares. Dividends paid per Class A Ordinary Share were $1.56, $1.41 and $1.29 for the years ended December 31, 2018, 2017, and 2016 respectively.
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 January 1, 2016
$
(25
)
 
$
(771
)
 
$
(2,627
)
 
$
(3,423
)
Other comprehensive income (loss) before reclassifications:
 
 
 
 
 
 
 
Other comprehensive income (loss) before reclassifications
(25
)
 
(490
)
 
(276
)
 
(791
)
Tax benefit (expense)
6

 
(3
)
 
74

 
77

Other comprehensive income (loss) before reclassifications, net
(19
)
 
(493
)
 
(202
)
 
(714
)
Amounts reclassified from accumulated other comprehensive income (loss):
 
 
 
 
 
 
 
Amounts reclassified from accumulated other comprehensive income (loss)
10

 
—

 
322

 
332

Tax benefit (expense)
(3
)
 
—

 
(104
)
 
(107
)
Amounts reclassified from accumulated other comprehensive income (loss), net
7

 
—

 
218

 
225

Net current period other comprehensive income (loss)
(12
)
 
(493
)
 
16

 
(489
)
Balance at December 31, 2016
(37
)
 
(1,264
)
 
(2,611
)
 
(3,912
)
Other comprehensive income (loss) before reclassifications
 
 
 
 
 
 
 
Other comprehensive income (loss) before reclassifications
18

 
397

 
(220
)
 
195

Tax benefit (expense)
(3
)
 
(5
)
 
55

 
47

Other comprehensive income (loss) before reclassifications, net
15

 
392

 
(165
)
 
242

Amounts reclassified from accumulated other comprehensive income (loss)
 
 
 
 
 
 
 
Amounts reclassified from accumulated other comprehensive income (loss)
(2
)
 
(7
)
 
236

 
227

Tax benefit (expense)
(1
)
 
—

 
(52
)
 
(53
)
Amounts reclassified from accumulated other comprehensive income (loss), net
(3
)
 
(7
)
 
184

 
174

Net current period other comprehensive income (loss)
12

 
385

 
19

 
416

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
 
 
 
 
 
 
 
Other comprehensive income (loss) before reclassifications
(15
)
 
(437
)
 
(124
)
 
(576
)
Tax benefit (expense)
18

 
(3
)
 
28

 
43

Other comprehensive income (loss) before reclassifications, net
3

 
(440
)
 
(96
)
 
(533
)
Amounts reclassified from accumulated other comprehensive income (loss)
 
 
 
 
 
 

Amounts reclassified from accumulated other comprehensive income (loss)
11

 
—

 
146

 
157

Tax benefit (expense)
(3
)
 
—

 
(33
)
 
(36
)
Amounts reclassified from accumulated other comprehensive income (loss), net
8

 
—

 
113

 
121

Net current period other comprehensive income (loss)
11


(440
)
 
17

 
(412
)
Balance at December 31, 2018
$
(15
)
 
$
(1,319
)
 
$
(2,575
)
 
$
(3,909
)
(1)
Reclassifications from this category included in Accumulated other comprehensive loss are recorded in Other income (expense), Other general expenses, and Compensation and benefits. See Note 15 “Derivatives and Hedging” for additional 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 “Summary of Significant Accounting Principles and Practices ” for further information.