Shareholders' Equity

3 Months Ended

Mar. 31, 2022

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 $5.0 billion in authorized repurchases, and was increased by $5.0 billion in authorized repurchases in each of November 2014, June 2017, November 2020, and by $7.5 billion in February 2022 for a total of $27.5 billion in repurchase authorizations.

Under the Repurchase Program, the Company’s 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 March 31,
	2022		2021
Shares repurchased	2.8		0.2
Average price per share	$	294.47	$	217.70

Repurchase costs recorded to retained earnings	$	828	$	50

At March 31, 2022, the remaining authorized amount for share repurchases under the Repurchase Program was approximately $8.4 billion. Under the Repurchase Program, the Company has repurchased a total of 152.4 million shares for an aggregate cost of approximately $19.1 billion.

Weighted Average Ordinary Shares

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


	Three Months Ended March 31,
	2022	2021
Basic weighted average ordinary shares outstanding	215.3	227.1
Dilutive effect of potentially issuable shares	1.1	1.0
Diluted weighted average ordinary shares outstanding	216.4	228.1

Potentially issuable shares are not included in the computation of Diluted net income per share attributable to Aon shareholders if their inclusion would be antidilutive. There were 0.9 million shares excluded from the calculation for the three months ended March 31, 2022 and 0.1 million shares excluded from the calculation for the three months ended March 31, 2021.

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, 2021	$	2	$	(1,333)	$	(2,540)	(3,871)


Other comprehensive income (loss) before reclassifications, net	—		(6)		10		4
Amounts reclassified from accumulated other comprehensive income
Amounts reclassified from accumulated other comprehensive income	1		—		31		32
Tax expense	—		—		(8)		(8)
Amounts reclassified from accumulated other comprehensive income, net (3)	1		—		23		24
Net current period other comprehensive income (loss)	1		(6)		33		28
Balance at March 31, 2022	$	3	$	(1,339)	$	(2,507)	$	(3,843)


	Change in Fair Value of Financial Instruments (1)		Foreign Currency Translation Adjustments		Postretirement Benefit Obligation (2)		Total
Balance at December 31, 2020	$	1	$	(1,045)	$	(2,817)	$	(3,861)


Other comprehensive income (loss) before reclassifications, net	10		(70)		2		(58)
Amounts reclassified from accumulated other comprehensive income
Amounts reclassified from accumulated other comprehensive income	1		—		36		37
Tax expense	—		—		(9)		(9)
Amounts reclassified from accumulated other comprehensive income, net (3)	1		—		27		28
Net current period other comprehensive income (loss)	11		(70)		29		(30)
Balance at March 31, 2021	$	12	$	(1,115)	$	(2,788)	$	(3,891)

(1)Reclassifications from this category included in Accumulated other comprehensive loss are recorded in Total revenue, Interest expense, and Compensation and benefits in the Condensed Consolidated Statements of Income. Refer to Note 13 “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) in the Condensed Consolidated Statements of Income.

(3)It is the Company’s policy to release income tax effects from Accumulated other comprehensive loss using the portfolio approach.