(Mark One) | |||||||||||
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||||||||
FOR THE FISCAL YEAR ENDED | |||||||||||
OR | |||||||||||
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
IRELAND | ||||||||||||||||||||
(State or other jurisdiction of | (I.R.S. Employer | |||||||||||||||||||
incorporation or organization) | Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | Emerging growth company |
Aon plc Consolidated Statements of Shareholders' Equity | |||||
Term | Definition | ||||
ABO | Accumulated Benefit Obligation | ||||
ASC | Accounting Standards Codification | ||||
AUM | Assets Under Management | ||||
BPS | Basis Points | ||||
CCC | Christchurch City Council | ||||
CODM | Chief Operating Decision Maker | ||||
CPI | Consumer Price Index | ||||
DCF | Discounted Cash Flow | ||||
DOL | Department of Labor | ||||
E&O | Errors and Omissions | ||||
EBITDA | Earnings before Interest, Taxes, Depreciation, and Amortization | ||||
ERISA | Employee Retirement Income Security Act of 1974 | ||||
ESG | Environmental, Social, Corporate Governance | ||||
E.U. | European Union | ||||
FASB | Financial Accounting Standards Board | ||||
FCA | Financial Conduct Authority | ||||
FINRA | Financial Industry Regulatory Authority | ||||
Fitch | Fitch, Inc. | ||||
GAAP | Generally Accepted Accounting Principles | ||||
GILTI | Global Intangible Low-Tax Income | ||||
I&D | Inclusion and Diversity | ||||
LOC | Letter of Credit | ||||
LPP | Leadership Performance Plan | ||||
MDI | Market Derived Income | ||||
NEBC | National Employee Benefits Committee | ||||
NYSE | New York Stock Exchange | ||||
OECD | Organization for Economic Co-operation and Development | ||||
PBO | Projected Benefit Obligation | ||||
PCAOB | Public Company Accounting Oversight Board | ||||
PSA | Performance Share Awards | ||||
REIT | Real Estate Investment Trusts | ||||
ROU | Right-of-use | ||||
RPGIC | Retirement Plan Governance and Investment Committee | ||||
RSU | Restricted Share Units | ||||
S&P | Standard & Poor’s | ||||
SEC | Securities and Exchange Commission | ||||
U.K. | United Kingdom | ||||
U.S. | United States | ||||
VIE | Variable Interest Entity | ||||
WTW | Willis Towers Watson Public Limited Company |
Property: | Occupied Square Footage | Lease Expiration Dates | |||||||||
200 E. Randolph Street, Chicago, Illinois | 312,000 | 2028 | |||||||||
165 Broadway, New York, New York | 217,000 | 2028 | |||||||||
122 Leadenhall Street, London, England | 178,000 | 2034 | |||||||||
4 Overlook Point, Lincolnshire, Illinois | 174,000 | 2024 |
Name | Age | Position | ||||||||||||
Eric Andersen | 58 | President. Mr. Andersen joined Aon in 1997 upon the completion of the acquisition of Minet. Mr. Andersen has served in a variety of roles during his more than 20 year career at Aon, including as Chief Executive Officer of Aon Risk Solutions Americas from 2011 to 2013, and Chief Executive Officer of Aon Benfield from September 2013 to May 2018. Mr. Andersen was appointed Co-President of the Company in May 2018 and became President in February 2020. He was named an Executive Officer in February 2017. | ||||||||||||
Gregory C. Case | 60 | Chief Executive Officer. Mr. Case became Chief Executive Officer of Aon in April 2005. He also served as Aon’s President from April 2005 to May 2018. Prior to joining Aon, Mr. Case was a partner with McKinsey & Company, a global 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 worked for the investment banking firm of Piper, Jaffray and Hopwood and the Federal Reserve Bank of Kansas City. | ||||||||||||
Christa Davies | 51 | 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. | ||||||||||||
Michael Neller | 44 | Chief Accounting Officer and Global Controller. Mr. Neller joined Aon in August 2011 as its Vice President, Technical Accounting and Policy. From December 2011 to February 2018, Mr. Neller served as Aon’s Deputy Global Controller. In this role, he was responsible for Aon’s Latin America and North America regions, as well as global accounting policy, corporate accounting, and external reporting. Before joining Aon, Mr. Neller served from July 2009 to August 2011 as a Senior Manager of KPMG LLP, an international public accounting firm, in its Department of Professional Practice (National Office). He was named Senior Vice President and Global Controller in February 2018. | ||||||||||||
Mindy Simon | 46 | Chief Operating Officer. Ms. Simon joined Aon as Chief Operating Officer in October 2022. Prior to joining Aon, Ms. Simon served as Chief Information Officer for Conagra Brands since June 2017. Prior to her role as Chief Information Officer, Ms. Simon held a variety of roles in finance and information technology with Conagra Brands since joining the company in 2000, including serving as VP Global Business Services from January 2016 to June 2017, and VP Information Technology from 2008 to 2016. | ||||||||||||
Jillian Slyfield | 49 | Chief Innovation Officer. Ms. Slyfield joined Aon in November 2015 as an Account Executive and later served as the Resident Sales Director for San Francisco until her appointment to Managing Director, Digital Economy Practice Leader in 2018. Ms. Slyfield was appointed Chief Innovation Officer of Aon in December 2021. Prior to joining Aon in 2015, Ms. Slyfield held client executive and commercial insurance executive positions at Marsh and Wells Fargo Insurance Services. | ||||||||||||
Lisa Stevens | 52 | Chief People Officer and Head of Global Human Capital Solutions. Ms. Stevens joined Aon in December 2018 as Global Executive Vice President and was named as Chief People Officer in October 2019. Prior to joining Aon, Ms. Stevens held a variety of roles during her 29-year career at Wells Fargo, most recently as Executive Vice President where she led the Western Region for the Community Bank. | ||||||||||||
Andy Weitz | 46 | Chief Marketing Officer. Mr. Weitz joined Aon in 2014 as Senior Vice President for Global Marketing and Communications. Before joining Aon, Mr. Weitz was President and CEO of the U.S. region for Hill + Knowlton Strategies, a global strategic communications consultancy. Prior to Hill + Knowlton, Mr. Weitz worked at Marsh, Inc., a global insurance brokerage, and served in various roles at Trilogy, Inc. a software company. | ||||||||||||
Darren Zeidel | 51 | General Counsel and Company Secretary. Mr. Zeidel was named General Counsel and Company Secretary in July 2019. Prior to this Mr. Zeidel held several leadership roles with Aon, including as Deputy General Counsel immediately prior to his appointment; Global Chief Counsel - Corporate, Retirement & Investment and Health Exchanges from 2017 to 2019; and Global Chief Counsel of Aon Hewitt upon joining Aon in 2012 to 2017. Before this Mr. Zeidel worked for Honeywell, where he held business segment general counsel roles in the aerospace strategic business unit and at Honeywell UOP LLC. Mr. Zeidel began his career as an Associate in the Mergers and Acquisitions group in the New York office of Skadden, Arps, Slate, Meagher & Flom, LLP. |
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) | ||||||||||||||||||||||
10/1/22 – 10/31/22 | 896,708 | $ | 278.80 | 896,708 | $ | 6,442,274,888 | ||||||||||||||||||||
11/1/22 – 11/30/22 | 660,458 | $ | 296.76 | 660,458 | $ | 6,246,278,509 | ||||||||||||||||||||
12/1/22 – 12/31/22 | 753,523 | $ | 303.90 | 753,523 | $ | 6,017,286,196 | ||||||||||||||||||||
2,310,689 | $ | 292.12 | 2,310,689 | $ | 6,017,286,196 |
Years Ended December 31 | ||||||||||||||||||||
2022 | 2021 | 2020 | ||||||||||||||||||
Revenue | ||||||||||||||||||||
Total revenue | $ | 12,479 | $ | 12,193 | $ | 11,066 | ||||||||||||||
Expenses | ||||||||||||||||||||
Compensation and benefits | 6,477 | 6,738 | 5,905 | |||||||||||||||||
Information technology | 509 | 477 | 444 | |||||||||||||||||
Premises | 289 | 327 | 291 | |||||||||||||||||
Depreciation of fixed assets | 151 | 179 | 167 | |||||||||||||||||
Amortization and impairment of intangible assets | 113 | 147 | 246 | |||||||||||||||||
Other general expense | 1,271 | 2,235 | 1,232 | |||||||||||||||||
Total operating expenses | 8,810 | 10,103 | 8,285 | |||||||||||||||||
Operating income | 3,669 | 2,090 | 2,781 | |||||||||||||||||
Interest income | 18 | 11 | 6 | |||||||||||||||||
Interest expense | (406) | (322) | (334) | |||||||||||||||||
Other income (expense) | (125) | 152 | 13 | |||||||||||||||||
Income before income taxes | 3,156 | 1,931 | 2,466 | |||||||||||||||||
Income tax expense | 510 | 623 | 448 | |||||||||||||||||
Net income | 2,646 | 1,308 | 2,018 | |||||||||||||||||
Less: Net income attributable to noncontrolling interests | 57 | 53 | 49 | |||||||||||||||||
Net income attributable to Aon shareholders | $ | 2,589 | $ | 1,255 | $ | 1,969 | ||||||||||||||
Diluted net income per share attributable to Aon shareholders | $ | 12.14 | $ | 5.55 | $ | 8.45 | ||||||||||||||
Weighted average ordinary shares outstanding - diluted | 213.2 | 226.1 | 233.1 |
Years Ended | ||||||||||||||||||||||||||||||||||||||||||||
Dec 31, 2022 | Dec 31, 2021 | % Change | Less: Currency Impact (1) | Less: Fiduciary Investment Income (2) | Less: Acquisitions, Divestitures & Other | Organic Revenue Growth (3) | ||||||||||||||||||||||||||||||||||||||
Commercial Risk Solutions | $ | 6,715 | $ | 6,635 | 1 | % | (4) | % | 1 | % | (2) | % | 6 | % | ||||||||||||||||||||||||||||||
Reinsurance Solutions | 2,190 | 1,997 | 10 | (3) | 1 | 4 | 8 | |||||||||||||||||||||||||||||||||||||
Health Solutions | 2,224 | 2,154 | 3 | (3) | — | (2) | 8 | |||||||||||||||||||||||||||||||||||||
Wealth Solutions | 1,367 | 1,426 | (4) | (5) | — | (2) | 3 | |||||||||||||||||||||||||||||||||||||
Elimination | (17) | (19) | N/A | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||||||
Total revenue | $ | 12,479 | $ | 12,193 | 2 | % | (4) | % | 1 | % | (1) | % | 6 | % |
Years Ended | ||||||||||||||||||||||||||||||||||||||||||||
Dec 31, 2021 | Dec 31, 2020 | % Change | Less: Currency Impact (1) | Less: Fiduciary Investment Income (2) | Less: Acquisitions, Divestitures & Other | Organic Revenue Growth (3) | ||||||||||||||||||||||||||||||||||||||
Commercial Risk Solutions | $ | 6,635 | $ | 5,861 | 13 | % | 2 | % | — | % | — | % | 11 | % | ||||||||||||||||||||||||||||||
Reinsurance Solutions | 1,997 | 1,814 | 10 | 2 | — | — | 8 | |||||||||||||||||||||||||||||||||||||
Health Solutions | 2,154 | 2,067 | 4 | 2 | — | (8) | 10 | |||||||||||||||||||||||||||||||||||||
Wealth Solutions | 1,426 | 1,341 | 6 | 3 | — | 1 | 2 | |||||||||||||||||||||||||||||||||||||
Elimination | (19) | (17) | NA | NA | NA | NA | NA | |||||||||||||||||||||||||||||||||||||
Total revenue | $ | 12,193 | $ | 11,066 | 10 | % | 2 | % | — | % | (1) | % | 9 | % |
Years Ended December 31 | ||||||||||||||
2022 | 2021 | |||||||||||||
Revenue | $ | 12,479 | $ | 12,193 | ||||||||||
Operating income - as reported | $ | 3,669 | $ | 2,090 | ||||||||||
Amortization and impairment of intangible assets | 113 | 147 | ||||||||||||
Transaction costs and other charges related to the combination and resulting termination (1) | — | 1,436 | ||||||||||||
Legal settlements (2) | $ | 58 | $ | — | ||||||||||
Operating income - as adjusted | 3,840 | 3,673 | ||||||||||||
Operating margin - as reported | 29.4 | % | 17.1 | % | ||||||||||
Operating margin - as adjusted | 30.8 | % | 30.1 | % |
Year Ended December 31, 2022 | ||||||||||||||||||||
U.S. GAAP | Adjustments | Non-GAAP Adjusted | ||||||||||||||||||
Operating income | $ | 3,669 | $ | 171 | $ | 3,840 | ||||||||||||||
Interest income | 18 | — | 18 | |||||||||||||||||
Interest expense | (406) | — | (406) | |||||||||||||||||
Other income (expense) (1) | (125) | 170 | 45 | |||||||||||||||||
Income before income taxes | 3,156 | 341 | 3,497 | |||||||||||||||||
Income tax expense (2) | 510 | 75 | 585 | |||||||||||||||||
Net income | 2,646 | 266 | 2,912 | |||||||||||||||||
Less: Net income attributable to noncontrolling interests | 57 | — | 57 | |||||||||||||||||
Net income attributable to Aon shareholders | $ | 2,589 | $ | 266 | $ | 2,855 | ||||||||||||||
Diluted net income per share attributable to Aon shareholders | $ | 12.14 | $ | 1.25 | $ | 13.39 | ||||||||||||||
Weighted average ordinary shares outstanding — diluted | 213.2 | — | 213.2 | |||||||||||||||||
Effective tax rates (2) | 16.2 | % | 16.7 | % |
Year Ended December 31, 2021 | ||||||||||||||||||||
U.S. GAAP | Adjustments | Non-GAAP Adjusted | ||||||||||||||||||
Operating income | $ | 2,090 | $ | 1,583 | $ | 3,673 | ||||||||||||||
Interest income | 11 | — | 11 | |||||||||||||||||
Interest expense | (322) | — | (322) | |||||||||||||||||
Other income (expense) (3) | 152 | (124) | 28 | |||||||||||||||||
Income before income taxes | 1,931 | 1,459 | 3,390 | |||||||||||||||||
Income tax expense (2) | 623 | — | 623 | |||||||||||||||||
Net income | 1,308 | 1,459 | 2,767 | |||||||||||||||||
Less: Net income attributable to noncontrolling interests | 53 | — | 53 | |||||||||||||||||
Net income attributable to Aon shareholders | $ | 1,255 | $ | 1,459 | $ | 2,714 | ||||||||||||||
Diluted net income per share attributable to Aon shareholders | $ | 5.55 | $ | 6.45 | $ | 12.00 | ||||||||||||||
Weighted average ordinary shares outstanding — diluted | 226.1 | — | 226.1 | |||||||||||||||||
Effective tax rates (2) | 32.3 | % | 18.4 | % |
Years Ended December 31 | ||||||||||||||
2022 | 2021 | |||||||||||||
Cash provided by operating activities | $ | 3,219 | $ | 2,182 | ||||||||||
Capital expenditures | (196) | (137) | ||||||||||||
Free cash flow | $ | 3,023 | $ | 2,045 |
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 | $ | 690 | $ | — | $ | 3,515 | $ | 4,205 | |||||||||||||||
Money market funds | — | 452 | 2,871 | 3,323 | |||||||||||||||||||
Cash, Short-term investments, and funds held on behalf of clients | 690 | 452 | 6,386 | 7,528 | |||||||||||||||||||
Fiduciary receivables | — | — | 9,514 | 9,514 | |||||||||||||||||||
Total | $ | 690 | $ | 452 | $ | 15,900 | $ | 17,042 |
Years Ended December 31 | ||||||||||||||
2022 | 2021 | |||||||||||||
Cash provided by operating activities | $ | 3,219 | $ | 2,182 | ||||||||||
Cash provided by (used for) investing activities | $ | (449) | $ | 49 | ||||||||||
Cash used for financing activities | $ | (1,790) | $ | (1,924) | ||||||||||
Effect of exchange rates on cash and cash equivalents and funds held on behalf of clients | $ | (549) | $ | (235) |
Years Ended December 31 | ||||||||||||||
2022 | 2021 | |||||||||||||
Shares repurchased | 11.1 | 12.4 | ||||||||||||
Average price per share | $ | 289.76 | $ | 286.82 | ||||||||||
Repurchase costs recorded to accumulated deficit | $ | 3,203 | $ | 3,543 |
Years Ended December 31 | |||||||||||
2022 | 2021 (2) | ||||||||||
Total issuances (1) | $ | 12,301 | $ | 4,478 | |||||||
Total repayments | (12,366) | (3,807) | |||||||||
Net issuances (repayments) | $ | (65) | $ | 671 |
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 |
Aon Corporation Notes | ||
8.205% Junior Subordinated Notes due January 2027 | ||
4.50% Senior Notes due December 2028 | ||
3.75% Senior Notes due May 2029 | ||
2.80% Senior Notes due May 2030 | ||
6.25% Senior Notes due September 2040 |
Aon Global Limited Notes | ||
4.00% Senior Notes due November 2023 | ||
3.50% Senior Notes due June 2024 | ||
3.875% Senior Notes due December 2025 | ||
2.875% Senior Notes due May 2026 | ||
4.25% Senior Notes due December 2042 | ||
4.45% Senior Notes due May 2043 | ||
4.60% Senior Notes due June 2044 | ||
4.75% Senior Notes due May 2045 |
Co-Issued Notes - Aon Corporation and Aon Global Holdings plc | ||
2.85% Senior Notes due May 2027 | ||
2.05% Senior Notes due August 2031 | ||
2.60% Senior Notes due December 2031 | ||
5.00% Senior Notes due September 2032 | ||
2.90% Senior Notes due August 2051 | ||
3.90% Senior Notes due February 2052 |
Obligor Group | |||||
Summarized Statement of Income Information | |||||
Year Ended December 31, 2022 | |||||
Revenue | $ | — | |||
Operating loss | $ | (102) | |||
Expense from non-guarantor subsidiaries before income taxes | $ | (656) | |||
Net loss | $ | (1,069) | |||
Net loss attributable to Aon shareholders | $ | (1,069) |
Obligor Group | |||||
Summarized Statement of Financial Position Information | |||||
As of December 31, 2022 | |||||
Receivables due from non-guarantor subsidiaries | $ | 1,300 | |||
Other current assets | 317 | ||||
Total current assets | $ | 1,617 | |||
Non-current receivables due from non-guarantor subsidiaries | $ | 483 | |||
Other non-current assets | 1,060 | ||||
Total non-current assets | $ | 1,543 | |||
Payables to non-guarantor subsidiaries | $ | 16,172 | |||
Other current liabilities | 5,880 | ||||
Total current liabilities | $ | 22,052 | |||
Non-current payables to non-guarantor subsidiaries | $ | 2,343 | |||
Other non-current liabilities | 11,226 | ||||
Total non-current liabilities | $ | 13,569 |
U.K. | U.S. | Other | |||||||||||||||
Accumulated other comprehensive loss | $ | 1,761 | $ | 1,305 | $ | 437 | |||||||||||
Amortization period | 7 to 25 years | 6 to 23 years | 11 to 34 years | ||||||||||||||
Estimated 2023 amortization of loss | $ | 74 | $ | 34 | $ | 13 |
U.K. | U.S. | Other | |||||||||||||||
Expected return on plan assets, net of administration expenses | 5.34% | 6.82% | 4.20 - 4.85% |
Increase (decrease) in projected benefit obligation (1) | 25 BPS Change in Discount Rate | ||||||||||
Increase | Decrease | ||||||||||
U.K. plans | $ | (95) | $ | (98) | |||||||
U.S. plans | $ | (53) | $ | 56 | |||||||
Other plans | $ | (39) | $ | 41 |
25 BPS Change in Discount Rate | |||||||||||
Increase (decrease) in expense | Increase | Decrease | |||||||||
U.K. plans | $ | (3) | $ | 3 | |||||||
U.S. plans | $ | — | $ | — | |||||||
Other plans | $ | — | $ | — |
25 BPS Change in Long-Term Rate of Return on Plan Assets | |||||||||||
Increase (decrease) in expense | Increase | Decrease | |||||||||
U.K. plans | $ | (9) | $ | 9 | |||||||
U.S. plans | $ | (4) | $ | 4 | |||||||
Other plans | $ | (3) | $ | 3 |
Realizability of Deferred Tax Assets | ||||||||||||||
Description of the Matter | As discussed in Note 9 “Income Taxes” of the Notes to Consolidated Financial Statements, the Company had net deferred tax assets of $ Conclusions on the realizability of certain net deferred tax assets involve significant management judgement including assumptions and estimates related to the amount, timing, and jurisdiction of future taxable income. Auditing the deferred tax asset calculation and the related forecast of future taxable income was especially challenging as it involved a high degree of auditor judgement around management’s assumptions and estimates of future taxable income. | |||||||||||||
How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design and operating effectiveness of internal controls that address the risks of material misstatement relating to the realizability of deferred tax assets, including controls over management’s projections of the amount, timing, and jurisdiction of future taxable income and the related assumptions. Among other audit procedures performed, we evaluated the assumptions used by the Company to develop projections of future taxable income by income tax jurisdiction and tested the completeness and accuracy of the underlying data used in the projections. For example, we inspected the assumptions made in the calculation of future taxable income, including the growth rate, the estimates of the reversal of cumulative temporary differences, and the capital and debt requirements by jurisdiction. We compared the projections of future taxable income with the actual results of prior periods. Further, we involved tax subject matter professionals in the review of the information identified. |
Years Ended December 31 | ||||||||||||||||||||
(millions, except per share data) | 2022 | 2021 | 2020 | |||||||||||||||||
Revenue | ||||||||||||||||||||
Total revenue | $ | $ | $ | |||||||||||||||||
Expenses | ||||||||||||||||||||
Compensation and benefits | ||||||||||||||||||||
Information technology | ||||||||||||||||||||
Premises | ||||||||||||||||||||
Depreciation of fixed assets | ||||||||||||||||||||
Amortization and impairment of intangible assets | ||||||||||||||||||||
Other general expense | ||||||||||||||||||||
Total operating expenses | ||||||||||||||||||||
Operating income | ||||||||||||||||||||
Interest income | ||||||||||||||||||||
Interest expense | ( | ( | ( | |||||||||||||||||
Other income (expense) | ( | |||||||||||||||||||
Income before income taxes | ||||||||||||||||||||
Income tax expense | ||||||||||||||||||||
Net income | ||||||||||||||||||||
Less: Net income attributable to noncontrolling interests | ||||||||||||||||||||
Net income attributable to Aon shareholders | $ | $ | $ | |||||||||||||||||
Basic net income per share attributable to Aon shareholders | $ | $ | $ | |||||||||||||||||
Diluted net income per share attributable to Aon shareholders | $ | $ | $ | |||||||||||||||||
Weighted average ordinary shares outstanding - basic | ||||||||||||||||||||
Weighted average ordinary shares outstanding - diluted |
Years Ended December 31 | ||||||||||||||||||||
(millions) | 2022 | 2021 | 2020 | |||||||||||||||||
Net income | $ | $ | $ | |||||||||||||||||
Less: Net income attributable to noncontrolling interests | ||||||||||||||||||||
Net income attributable to Aon shareholders | ||||||||||||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||
Change in fair value of financial instruments | ( | |||||||||||||||||||
Foreign currency translation adjustments | ( | ( | ||||||||||||||||||
Postretirement benefit obligation | ( | ( | ||||||||||||||||||
Total other comprehensive income (loss) | ( | ( | ||||||||||||||||||
Less: Other comprehensive income (loss) attributable to noncontrolling interests | ( | |||||||||||||||||||
Total other comprehensive income (loss) attributable to Aon shareholders | ( | ( | ||||||||||||||||||
Comprehensive income attributable to Aon shareholders | $ | $ | $ |
As of December 31 | ||||||||||||||
(millions, except nominal value) | 2022 | 2021 | ||||||||||||
Assets | ||||||||||||||
Current assets | ||||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Short-term investments | ||||||||||||||
Receivables, net | ||||||||||||||
Fiduciary assets | ||||||||||||||
Other current assets | ||||||||||||||
Total current assets | ||||||||||||||
Goodwill | ||||||||||||||
Intangible assets, net | ||||||||||||||
Fixed assets, net | ||||||||||||||
Operating lease right-of-use assets | ||||||||||||||
Deferred tax assets | ||||||||||||||
Prepaid pension | ||||||||||||||
Other non-current assets | ||||||||||||||
Total assets | $ | $ | ||||||||||||
Liabilities and equity (deficit) | ||||||||||||||
Liabilities | ||||||||||||||
Current liabilities | ||||||||||||||
Accounts payable and accrued liabilities | $ | $ | ||||||||||||
Short-term debt and current portion of long-term debt | ||||||||||||||
Fiduciary liabilities | ||||||||||||||
Other current liabilities | ||||||||||||||
Total current liabilities | ||||||||||||||
Long-term debt | ||||||||||||||
Non-current operating lease liabilities | ||||||||||||||
Deferred tax liabilities | ||||||||||||||
Pension, other postretirement, and postemployment liabilities | ||||||||||||||
Other non-current liabilities | ||||||||||||||
Total liabilities | ||||||||||||||
Equity (deficit) | ||||||||||||||
Ordinary shares - $ Authorized: | ||||||||||||||
Additional paid-in capital | ||||||||||||||
Accumulated deficit | ( | ( | ||||||||||||
Accumulated other comprehensive loss | ( | ( | ||||||||||||
Total Aon shareholders' equity (deficit) | ( | |||||||||||||
Noncontrolling interests | ||||||||||||||
Total equity (deficit) | ( | |||||||||||||
Total liabilities and equity (deficit) | $ | $ |
(millions, except per share data) | Shares | Ordinary Shares and Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Loss, Net of Tax | Non-controlling Interests | Total | ||||||||||||||||||||||||||||||||
Balance at January 1, 2020 | ( | |||||||||||||||||||||||||||||||||||||
Net income | — | — | — | |||||||||||||||||||||||||||||||||||
Shares issued — employee stock compensation plans | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||
Shares repurchased | ( | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | ||||||||||||||||||||||||||||||||||
Dividends to shareholders ($ | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||
Net change in fair value of financial instruments | — | — | — | — | ||||||||||||||||||||||||||||||||||
Net foreign currency translation adjustments | — | — | — | |||||||||||||||||||||||||||||||||||
Net postretirement benefit obligation | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Net purchases of shares from noncontrolling interests | — | ( | — | — | ( | ( | ||||||||||||||||||||||||||||||||
Dividends paid to noncontrolling interests on subsidiary common stock | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | ( | |||||||||||||||||||||||||||||||||||||
Net income | — | — | — | |||||||||||||||||||||||||||||||||||
Shares issued — employee stock compensation plans | ( | ( | — | — | ( | |||||||||||||||||||||||||||||||||
Shares repurchased | ( | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | ||||||||||||||||||||||||||||||||||
Dividends to shareholders ($ | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||
Net change in fair value of financial instruments | — | — | — | — | ||||||||||||||||||||||||||||||||||
Net foreign currency translation adjustments | — | — | — | ( | ( | ( | ||||||||||||||||||||||||||||||||
Net postretirement benefit obligation | — | — | — | — | ||||||||||||||||||||||||||||||||||
Net purchases of shares from noncontrolling interests | — | ( | — | — | ( | ( | ||||||||||||||||||||||||||||||||
Dividends paid to noncontrolling interests on subsidiary common stock | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | ( | ( | ||||||||||||||||||||||||||||||||||||
Net income | — | — | — | |||||||||||||||||||||||||||||||||||
Shares issued — employee stock compensation plans | ( | ( | — | — | ( | |||||||||||||||||||||||||||||||||
Shares repurchased | ( | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | ||||||||||||||||||||||||||||||||||
Dividends to shareholders ($ | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||
Net change in fair value of financial instruments | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Net foreign currency translation adjustments | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||
Net postretirement benefit obligation | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Net purchases of shares from noncontrolling interests | — | ( | — | — | ( | ( | ||||||||||||||||||||||||||||||||
Dividends paid to noncontrolling interests on subsidiary common stock | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | $ | $ | ( | $ | ( | $ | $ | ( |
Years Ended December 31 | ||||||||||||||||||||
(millions) | 2022 | 2021 | 2020 | |||||||||||||||||
Cash flows from operating activities | ||||||||||||||||||||
Net income | $ | $ | $ | |||||||||||||||||
Adjustments to reconcile net income to cash provided by operating activities: | ||||||||||||||||||||
Gain from sales of businesses | ( | ( | ( | |||||||||||||||||
Depreciation of fixed assets | ||||||||||||||||||||
Amortization and impairment of intangible assets | ||||||||||||||||||||
Share-based compensation expense | ||||||||||||||||||||
Deferred income taxes | ( | |||||||||||||||||||
Other, net | ||||||||||||||||||||
Change in assets and liabilities: | ||||||||||||||||||||
Receivables, net | ( | ( | ||||||||||||||||||
Accounts payable and accrued liabilities | ( | |||||||||||||||||||
Current income taxes | ( | |||||||||||||||||||
Pension, other postretirement and postemployment liabilities | ( | ( | ( | |||||||||||||||||
Other assets and liabilities | ( | |||||||||||||||||||
Cash provided by operating activities | ||||||||||||||||||||
Cash flows from investing activities | ||||||||||||||||||||
Proceeds from investments | ||||||||||||||||||||
Payments for investments | ( | ( | ( | |||||||||||||||||
Net sales (purchases) of short-term investments - non fiduciary | ( | ( | ||||||||||||||||||
Acquisition of businesses, net of cash and funds held on behalf of clients | ( | ( | ( | |||||||||||||||||
Sale of businesses, net of cash and funds held on behalf of clients | ||||||||||||||||||||
Capital expenditures | ( | ( | ( | |||||||||||||||||
Cash provided by (used for) investing activities | ( | ( | ||||||||||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Share repurchase | ( | ( | ( | |||||||||||||||||
Proceeds from issuance of shares | ||||||||||||||||||||
Cash paid for employee taxes on withholding shares | ( | ( | ( | |||||||||||||||||
Commercial paper issuances, net of repayments | ( | ( | ||||||||||||||||||
Issuance of debt | ||||||||||||||||||||
Repayment of debt | ( | ( | ( | |||||||||||||||||
Increase in fiduciary liabilities, net of fiduciary receivables | ||||||||||||||||||||
Cash dividends to shareholders | ( | ( | ( | |||||||||||||||||
Noncontrolling interests and other financing activities | ( | ( | ( | |||||||||||||||||
Cash used for financing activities | ( | ( | ( | |||||||||||||||||
Effect of exchange rates on cash and cash equivalents and funds held on behalf of clients | ( | ( | ||||||||||||||||||
Net increase in cash and cash equivalents and funds held on behalf of clients | ||||||||||||||||||||
Cash and cash equivalents and funds held on behalf of clients at beginning of year | ||||||||||||||||||||
Cash and cash equivalents and funds held on behalf of clients at end of year | $ | $ | $ | |||||||||||||||||
Reconciliation of cash and cash equivalents and funds held on behalf of clients: | ||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | |||||||||||||||||
Funds held on behalf of clients | ||||||||||||||||||||
Total cash and cash equivalents and funds held on behalf of clients | $ | $ | $ | |||||||||||||||||
Supplemental disclosures: | ||||||||||||||||||||
Interest paid | $ | $ | $ | |||||||||||||||||
Income taxes paid, net of refunds | $ | $ | $ |
Asset Description | Estimated Useful Life | |||||||
Software | Lesser of the life of an associated license, or | |||||||
Leasehold improvements | Lesser of estimated useful life or lease term, not to exceed | |||||||
Furniture, fixtures and equipment | ||||||||
Computer equipment | ||||||||
Buildings | ||||||||
Automobiles |
Intangible Asset Description | Amortization Basis | Estimated Useful Life | ||||||||||||
Customer-related and contract-based | In line with underlying cash flows | |||||||||||||
Technology and other | Straight-line | |||||||||||||
Tradenames | Straight-line |
Years Ended December 31 | ||||||||||||||||||||
2022 | 2021 | 2020 | ||||||||||||||||||
Commercial Risk Solutions | $ | $ | $ | |||||||||||||||||
Reinsurance Solutions | ||||||||||||||||||||
Health Solutions | ||||||||||||||||||||
Wealth Solutions | ||||||||||||||||||||
Elimination | ( | ( | ( | |||||||||||||||||
Total revenue | $ | $ | $ |
Years Ended December 31 | ||||||||||||||||||||
2022 | 2021 | 2020 | ||||||||||||||||||
U.S. | $ | $ | $ | |||||||||||||||||
Americas other than U.S. | ||||||||||||||||||||
U.K. | ||||||||||||||||||||
Ireland | ||||||||||||||||||||
Europe, Middle East, & Africa other than U.K. and Ireland | ||||||||||||||||||||
Asia Pacific | ||||||||||||||||||||
Total revenue | $ | $ | $ |
2022 | 2021 | |||||||||||||
Balance at beginning of period | $ | $ | ||||||||||||
Additions | ||||||||||||||
Amortization | ( | ( | ||||||||||||
Impairment | ||||||||||||||
Foreign currency translation and other | ( | ( | ||||||||||||
Balance at end of period | $ | $ |
2022 | 2021 | |||||||||||||
Balance at beginning of period | $ | $ | ||||||||||||
Additions | ||||||||||||||
Amortization | ( | ( | ||||||||||||
Impairment | ||||||||||||||
Foreign currency translation and other | ( | ( | ||||||||||||
Balance at end of period | $ | $ |
Years Ended December 31 | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Pension and other postretirement (1) | $ | ( | $ | $ | |||||||||||||
Foreign currency remeasurement | ( | ( | |||||||||||||||
Extinguishment of debt | ( | ||||||||||||||||
( | ( | ||||||||||||||||
Equity earnings | |||||||||||||||||
Gain from disposals of business | |||||||||||||||||
Total | $ | ( | $ | $ |
2022 | 2021 | 2020 | |||||||||||||||
Balance at beginning of period | $ | $ | $ | ||||||||||||||
Provision | |||||||||||||||||
Accounts written off, net of recoveries | ( | ( | ( | ||||||||||||||
Foreign currency translation and other | ( | ( | |||||||||||||||
Balance at end of period | $ | $ | $ |
As of December 31 | 2022 | 2021 | |||||||||
Costs to fulfill contracts with customers (1) | $ | $ | |||||||||
Prepaid expenses | |||||||||||
Taxes receivable | |||||||||||
Other | |||||||||||
Total | $ | $ |
As of December 31 | 2022 | 2021 | |||||||||
Software | $ | $ | |||||||||
Leasehold improvements | |||||||||||
Computer equipment | |||||||||||
Furniture, fixtures, and equipment | |||||||||||
Construction in progress | |||||||||||
Other | |||||||||||
Fixed assets, gross | |||||||||||
Less: Accumulated depreciation | |||||||||||
Fixed assets, net | $ | $ |
As of December 31 | 2022 | 2021 | |||||||||
Costs to obtain contracts with customers (1) | $ | $ | |||||||||
Taxes receivable | |||||||||||
Investments | |||||||||||
Leases (2) | |||||||||||
Other | |||||||||||
Total | $ | $ |
As of December 31 | 2022 | 2021 | |||||||||
Deferred revenue (1) | $ | $ | |||||||||
Taxes payable | |||||||||||
Leases (2) | |||||||||||
Other | |||||||||||
Total | $ | $ |
As of December 31 | 2022 | 2021 | |||||||||
Taxes payable (1) | $ | $ | |||||||||
Compensation and benefits | |||||||||||
Deferred revenue | |||||||||||
Leases (2) | |||||||||||
Other | |||||||||||
Total | $ | $ |
Year Ended December 31, 2022 | |||||
Consideration transferred | |||||
Cash | $ | ||||
Deferred and contingent consideration | |||||
Aggregate consideration transferred | $ | ||||
Assets acquired | |||||
Goodwill | $ | ||||
Intangible assets | |||||
Other assets (1) | |||||
Total assets acquired | |||||
Liabilities assumed | |||||
Total liabilities assumed | |||||
Net assets acquired | $ |
Balance as of January 1, 2021 | $ | ||||
Goodwill related to current year acquisitions | |||||
Goodwill related to current year disposals | ( | ||||
Foreign currency translation and other | ( | ||||
Balance as of December 31, 2021 | $ | ||||
Goodwill related to current year acquisitions | |||||
Goodwill related to current year disposals | ( | ||||
Foreign currency translation and other | ( | ||||
Balance as of December 31, 2022 | $ |
As of December 31 | 2022 | 2021 | |||||||||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization and Impairment | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization and Impairment | Net Carrying Amount | ||||||||||||||||||||||||||||||
Customer-related and contract-based | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Technology and other | |||||||||||||||||||||||||||||||||||
Tradenames | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
Estimated Future Amortization | ||||||||
For the years ended | ||||||||
2023 | $ | |||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
Thereafter | ||||||||
Total | $ |
As of December 31 | 2022 | 2021 | |||||||||
Commercial paper | $ | $ | |||||||||
Other | |||||||||||
Total debt | |||||||||||
Less: Short-term debt and current portion of long-term debt | |||||||||||
Total long-term debt | $ | $ |
2023 | $ | ||||
2024 | |||||
2025 | |||||
2026 | |||||
2027 | |||||
Thereafter | |||||
Total Repayments | |||||
Unamortized discounts, premiums, and debt issuance costs | ( | ||||
Total Debt | $ |
As of December 31 | 2022 | 2021 | ||||||||||||
Commercial paper outstanding | $ | $ |
Years Ended December 31 | ||||||||||||||
2022 | 2021 | |||||||||||||
Weighted average commercial paper outstanding | $ | $ | ||||||||||||
Weighted average interest rate of commercial paper outstanding | % | % |
As of December 31 | 2022 | 2021 | |||||||||
Assets | |||||||||||
Operating lease assets | Operating lease right-of-use assets | $ | $ | ||||||||
Finance lease assets | |||||||||||
Total lease assets | $ | $ | |||||||||
Liabilities | |||||||||||
Current lease liabilities | |||||||||||
Operating | $ | $ | |||||||||
Finance | |||||||||||
Non-current lease liabilities | |||||||||||
Operating | Non-current operating lease liabilities | ||||||||||
Finance | |||||||||||
Total lease liabilities | $ | $ |
Years Ended December 31 | ||||||||
2022 | 2021 | |||||||
Operating lease cost | $ | $ | ||||||
Finance lease costs | ||||||||
Amortization of leased assets | ||||||||
Interest on lease liabilities | ||||||||
Variable lease cost | ||||||||
Short-term lease cost (1) | ||||||||
Sublease income | ( | ( | ||||||
Net lease cost | $ | $ |
As of December 31 | 2022 | 2021 | ||||||
Weighted average remaining lease term (years) | ||||||||
Operating leases | ||||||||
Finance leases | ||||||||
Weighted average discount rate | ||||||||
Operating leases | % | % | ||||||
Finance leases | % | % |
Years Ended December 31 | ||||||||
2022 | 2021 | |||||||
Cash paid for amounts included in the measurement of lease liabilities | ||||||||
Operating cash flows for operating leases | $ | $ | ||||||
Financing cash flows for finance leases | $ | $ | ||||||
Non-cash related activities | ||||||||
ROU assets obtained in exchange for new operating lease liabilities | $ | $ | ||||||
ROU assets obtained in exchange for new finance lease liabilities | $ | $ | ||||||
Operating lease ROU asset expense (1) | $ | $ | ||||||
Changes in Non-current operating lease liabilities (1) | $ | ( | $ | ( | ||||
Operating Leases | Finance Leases | Total | |||||||||||||||
2023 | $ | $ | $ | ||||||||||||||
2024 | |||||||||||||||||
2025 | |||||||||||||||||
2026 | |||||||||||||||||
2027 | |||||||||||||||||
Thereafter | |||||||||||||||||
Total undiscounted future minimum lease payments | |||||||||||||||||
Less: Imputed interest | ( | ( | |||||||||||||||
Present value of lease liabilities | $ | $ | $ |
Years Ended December 31 | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Income (loss) before income taxes: | |||||||||||||||||
Ireland | $ | $ | $ | ( | |||||||||||||
U.K. | |||||||||||||||||
U.S. | ( | ( | |||||||||||||||
Other | |||||||||||||||||
Total | $ | $ | $ | ||||||||||||||
Income tax expense: | |||||||||||||||||
Current: | |||||||||||||||||
Ireland | $ | $ | $ | ||||||||||||||
U.K. | |||||||||||||||||
U.S. federal | |||||||||||||||||
U.S. state and local | |||||||||||||||||
Other | |||||||||||||||||
Total current tax expense | $ | $ | $ | ||||||||||||||
Deferred tax expense (benefit): | |||||||||||||||||
Ireland | $ | $ | ( | $ | ( | ||||||||||||
U.K. | ( | ||||||||||||||||
U.S. federal | ( | ( | ( | ||||||||||||||
U.S. state and local | ( | ( | ( | ||||||||||||||
Other | ( | ( | |||||||||||||||
Total deferred tax expense (benefit) | $ | ( | $ | $ | |||||||||||||
Total income tax expense | $ | $ | $ |
Years Ended December 31 | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Statutory tax rate | |||||||||||||||||
U.S. state income taxes, net of U.S. federal benefit | |||||||||||||||||
Taxes on international operations (1) (2) | ( | ( | ( | ||||||||||||||
Nondeductible expenses | |||||||||||||||||
Adjustments to prior year tax requirements | ( | ( | |||||||||||||||
Deferred tax adjustments, including statutory rate changes | ( | ||||||||||||||||
Deferred tax adjustments, international earnings | |||||||||||||||||
Adjustments to valuation allowances | ( | ||||||||||||||||
Change in uncertain tax positions | |||||||||||||||||
Excess tax benefits related to shared based compensation (3) | ( | ( | ( | ||||||||||||||
Capital and other losses | ( | ( | |||||||||||||||
Non-deductible transaction costs | |||||||||||||||||
Non-deductible termination fee | |||||||||||||||||
Other — net | ( | ( | ( | ||||||||||||||
Effective tax rate |
As of December 31 | 2022 | 2021 | |||||||||
Deferred tax assets: | |||||||||||
Net operating loss, capital loss, interest, and tax credit carryforwards | $ | $ | |||||||||
Lease liabilities | |||||||||||
Employee benefit plans | |||||||||||
Other accrued expenses | |||||||||||
Accrued interest | |||||||||||
Federal and state benefit of interest from uncertain tax positions | |||||||||||
Deferred revenue | |||||||||||
Investment basis differences | |||||||||||
Lease and service guarantees | |||||||||||
Other | |||||||||||
Total | |||||||||||
Valuation allowance on deferred tax assets | ( | ( | |||||||||
Total | $ | $ | |||||||||
Deferred tax liabilities: | |||||||||||
Intangibles and property, plant and equipment | $ | ( | $ | ( | |||||||
Lease right-of-use asset | ( | ( | |||||||||
Deferred costs | ( | ( | |||||||||
Unremitted earnings | ( | ( | |||||||||
Other accrued expenses | ( | ( | |||||||||
Unrealized foreign exchange gains | ( | ( | |||||||||
Other | ( | ( | |||||||||
Total | $ | ( | $ | ( | |||||||
Net deferred tax asset | $ | $ |
As of December 31 | 2022 | 2021 | |||||||||
Deferred tax assets — non-current | $ | $ | |||||||||
Deferred tax liabilities — non-current | ( | ( | |||||||||
Net deferred tax asset | $ | $ |
As of December 31 | 2022 | 2021 | |||||||||
U.K. | |||||||||||
Operating loss carryforwards | $ | $ | |||||||||
Capital loss carryforwards | $ | $ | |||||||||
U.S. | |||||||||||
Federal operating loss carryforwards | $ | $ | |||||||||
Federal capital loss carryforwards | $ | $ | |||||||||
Federal interest carryforwards | $ | $ | |||||||||
Federal foreign tax credit carryforwards | $ | $ | |||||||||
State operating loss carryforwards | $ | $ | |||||||||
State capital loss carryforwards | $ | $ | |||||||||
State interest carryforwards | $ | $ | |||||||||
Other Non-U.S. | |||||||||||
Operating loss carryforwards | $ | $ | |||||||||
Capital loss carryforwards | $ | $ | |||||||||
Interest carryforwards | $ | $ | |||||||||
Other carryforwards | $ | $ |
2022 | 2021 | ||||||||||
Balance at January 1 | $ | $ | |||||||||
Additions based on tax positions related to the current year | |||||||||||
Additions for tax positions of prior years | |||||||||||
Reductions for tax positions of prior years | ( | ( | |||||||||
Settlements | ( | ||||||||||
Business combinations | |||||||||||
Lapse of statute of limitations | ( | ( | |||||||||
Foreign currency translation | |||||||||||
Balance at December 31 | $ | $ |
Years Ended December 31 | ||||||||||||||
2022 | 2021 | |||||||||||||
Shares repurchased | ||||||||||||||
Average price per share | $ | $ | ||||||||||||
Repurchase costs recorded to accumulated deficit | $ | $ |
Years Ended December 31 | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Basic weighted average ordinary shares outstanding | |||||||||||||||||
Dilutive effect of potentially issuable shares | |||||||||||||||||
Diluted weighted average ordinary shares outstanding |
Change in Fair Value of Financial Instruments (1) | Foreign Currency Translation Adjustments | Postretirement Benefit Obligation (2) | Total | ||||||||||||||||||||
Balance at December 31, 2019 | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Other comprehensive income (loss) before reclassifications: | |||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | ||||||||||||||||||||||
Tax benefit | |||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications, net | ( | ||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss): | |||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | |||||||||||||||||||||||
Tax expense | ( | ( | ( | ||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income, net | |||||||||||||||||||||||
Net current period other comprehensive income (loss) | ( | ||||||||||||||||||||||
Balance at December 31, 2020 | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
Other comprehensive income (loss) before reclassifications: | |||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | ( | |||||||||||||||||||||
Tax benefit (expense) | ( | ( | |||||||||||||||||||||
Other comprehensive income (loss) before reclassifications, net | ( | ( | |||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss): | |||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | |||||||||||||||||||||||
Tax expense | ( | ( | ( | ||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income, net | |||||||||||||||||||||||
Net current period other comprehensive income (loss) | ( | ( | |||||||||||||||||||||
Balance at December 31, 2021 | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
Other comprehensive income (loss) before reclassifications: | |||||||||||||||||||||||
Other comprehensive loss before reclassifications | ( | ( | ( | ( | |||||||||||||||||||
Tax benefit (expense) | |||||||||||||||||||||||
Other comprehensive loss before reclassifications, net | ( | ( | ( | ( | |||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss): | |||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | ( | ||||||||||||||||||||||
Tax expense | ( | ( | |||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss), net | ( | ||||||||||||||||||||||
Net current period other comprehensive loss | ( | ( | ( | ( | |||||||||||||||||||
Balance at December 31, 2022 | $ | ( | $ | ( | $ | ( | $ | ( |
Years Ended December 31 | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
U.S. | $ | $ | $ | ||||||||||||||
U.K. | |||||||||||||||||
Netherlands and Canada | |||||||||||||||||
Total | $ | $ | $ |
U.K. | U.S. | Other | |||||||||||||||||||||||||||||||||
(millions) | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||
Change in projected benefit obligation | |||||||||||||||||||||||||||||||||||
At January 1 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Service cost | |||||||||||||||||||||||||||||||||||
Interest cost | |||||||||||||||||||||||||||||||||||
Settlements | ( | ( | |||||||||||||||||||||||||||||||||
Actuarial (gain) loss | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||
Benefit payments | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Foreign currency impact | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
As of December 31 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Accumulated benefit obligation at end of year | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Change in fair value of plan assets | |||||||||||||||||||||||||||||||||||
At January 1 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Actual return on plan assets | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Employer contributions | |||||||||||||||||||||||||||||||||||
Settlements | ( | ( | |||||||||||||||||||||||||||||||||
Benefit payments | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Foreign currency impact | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
As of December 31 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Market related value at end of year | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Amount recognized in Statement of Financial Position as of December 31 | |||||||||||||||||||||||||||||||||||
Funded status | $ | $ | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||||
Unrecognized prior-service cost | ( | ( | |||||||||||||||||||||||||||||||||
Unrecognized loss | |||||||||||||||||||||||||||||||||||
Net amount recognized | $ | $ | $ | $ | $ | $ |
U.K. | U.S. | Other | |||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||
Prepaid benefit cost (1) | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Accrued benefit liability - current (2) | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Accrued benefit liability - non-current (3) | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Accumulated other comprehensive loss | |||||||||||||||||||||||||||||||||||
Net amount recognized | $ | $ | $ | $ | $ | $ |
U.K. | U.S. | Other | |||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||
Net loss | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Prior service cost (income) | ( | ( | |||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
U.K. | U.S. | Other | |||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2020 | 2022 | 2021 | 2020 | 2022 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||
Service cost | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Interest cost | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets, net of administration expenses | ( | ( | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Amortization of prior-service cost | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of net actuarial loss | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net periodic benefit (income) cost | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Settlement expense | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total net periodic benefit cost (income) | $ | ( | $ | ( | $ | ( | $ | $ | $ | $ | ( | $ | ( | $ | ( |
U.K. | U.S. (1) | Other | |||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||
Discount rate | |||||||||||||||||||||||||||||||||||
Rate of compensation increase | N/A | N/A | |||||||||||||||||||||||||||||||||
Underlying price inflation | N/A | N/A |
U.K. | U.S. | Other | |||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2020 | 2022 | 2021 | 2020 | 2022 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||
Discount rate | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets, net of administration expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Rate of compensation increase | N/A | N/A | N/A |
Fair Value Measurements Using | |||||||||||||||||||||||
Asset Category | Balance at December 31, 2022 | 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) | $ | $ | $ | $ | |||||||||||||||||||
Equity investments: | |||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||
Equity derivatives | ( | ( | |||||||||||||||||||||
Pooled funds (2) | |||||||||||||||||||||||
Fixed income investments: | |||||||||||||||||||||||
Corporate bonds | |||||||||||||||||||||||
Government and agency bonds | |||||||||||||||||||||||
Pooled funds (2) | |||||||||||||||||||||||
Other investments: | |||||||||||||||||||||||
Real estate (2) (3) | |||||||||||||||||||||||
Alternative investments (2) (4) | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Fair Value Measurements Using | |||||||||||||||||||||||
Asset Category | Balance at December 31, 2021 | 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) | $ | $ | $ | $ | |||||||||||||||||||
Equity investments: | |||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||
Equity derivatives | |||||||||||||||||||||||
Pooled funds (2) | |||||||||||||||||||||||
Fixed income investments: | |||||||||||||||||||||||
Corporate bonds | |||||||||||||||||||||||
Government and agency bonds | |||||||||||||||||||||||
Pooled funds (2) | |||||||||||||||||||||||
Other investments: | |||||||||||||||||||||||
Real estate (2)(3) | |||||||||||||||||||||||
Alternative investments (2) (4) | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Fair Value Measurements Using | |||||||||||||||||||||||
Balance at December 31, 2022 | 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) | $ | $ | $ | $ | |||||||||||||||||||
Equity investments: | |||||||||||||||||||||||
Pooled funds (2) | |||||||||||||||||||||||
Fixed income investments: | |||||||||||||||||||||||
Derivatives (3) | ( | ( | |||||||||||||||||||||
Government and agency bonds | |||||||||||||||||||||||
Annuities | |||||||||||||||||||||||
Pooled funds (2) | |||||||||||||||||||||||
Other investments: | |||||||||||||||||||||||
Real estate (2) (4) | |||||||||||||||||||||||
Pooled funds (2) (5) | |||||||||||||||||||||||
Total | $ | $ | $ | ( | $ |
Fair Value Measurements Using | |||||||||||||||||||||||
Balance at December 31, 2021 | 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) | $ | $ | $ | $ | |||||||||||||||||||
Equity investments: | |||||||||||||||||||||||
Pooled funds (2) | |||||||||||||||||||||||
Fixed income investments: | |||||||||||||||||||||||
Derivatives (3) | ( | ( | |||||||||||||||||||||
Government and agency bonds | |||||||||||||||||||||||
Annuities | |||||||||||||||||||||||
Pooled funds (2) | |||||||||||||||||||||||
Other investments: | |||||||||||||||||||||||
Real estate (2) (4) | |||||||||||||||||||||||
Pooled funds (2) (5) | |||||||||||||||||||||||
Total | $ | $ | $ | ( | $ |
Fair Value Measurements Using Level 3 Inputs | Annuities | ||||
Balance at January 1, 2021 | $ | ||||
Actual return on plan assets: | |||||
Relating to assets still held at December 31, 2021 | ( | ||||
Purchase, sales and settlements-net | |||||
Foreign exchange | ( | ||||
Balance at December 31, 2021 | |||||
Actual return on plan assets: | |||||
Relating to assets still held at December 31, 2022 | ( | ||||
Purchases, sales and settlements-net | |||||
Foreign exchange | ( | ||||
Balance at December 31, 2022 | $ |
Fair Value Measurements Using | |||||||||||||||||||||||
Balance at December 31, 2022 | 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) | $ | $ | $ | $ | |||||||||||||||||||
Equity investments: | |||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||
Pooled funds (2) | |||||||||||||||||||||||
Fixed income investments: | |||||||||||||||||||||||
Government and agency bonds | |||||||||||||||||||||||
Derivatives | ( | ( | |||||||||||||||||||||
Pooled funds (2) | |||||||||||||||||||||||
Other investments: | |||||||||||||||||||||||
Alternative investments (2) (3) | |||||||||||||||||||||||
Real estate (2) (4) | |||||||||||||||||||||||
Total | $ | $ | $ | ( | $ |
Fair Value Measurements Using | |||||||||||||||||||||||
Balance at December 31, 2021 | 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) | $ | $ | $ | $ | |||||||||||||||||||
Equity investments: | |||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||
Pooled funds (2) | |||||||||||||||||||||||
Fixed income investments: | |||||||||||||||||||||||
Government and agency bonds | |||||||||||||||||||||||
Pooled funds (2) | |||||||||||||||||||||||
Other investments: | |||||||||||||||||||||||
Alternative investments (2) (3) | |||||||||||||||||||||||
Real estate (2) (4) | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
U.K. | U.S. | Other | ||||||||||||||||||
2023 | $ | $ | $ | |||||||||||||||||
2024 | $ | $ | $ | |||||||||||||||||
2025 | $ | $ | $ | |||||||||||||||||
2026 | $ | $ | $ | |||||||||||||||||
2027 | $ | $ | $ | |||||||||||||||||
2028 - 2032 | $ | $ | $ |
2022 | 2021 | ||||||||||
Accumulated projected benefit obligation | $ | $ | |||||||||
Fair value of plan assets | |||||||||||
Funded status | ( | ( | |||||||||
Unrecognized prior-service credit | ( | ( | |||||||||
Unrecognized (gain) loss | ( | ||||||||||
Net amount recognized | $ | ( | $ | ( |
2022 | 2021 | 2020 | |||||||||||||||
Net periodic benefit cost recognized (millions) | $ | $ | $ | ||||||||||||||
Weighted-average discount rate used to determine future benefit obligations | |||||||||||||||||
Weighted-average discount rate used to determine net periodic benefit costs | 1.97 - 2.69% |
Years Ended December 31 | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Restricted share units | $ | $ | $ | ||||||||||||||
Performance share awards | |||||||||||||||||
Employee share purchase plans and other (1) | |||||||||||||||||
Total share-based compensation expense | |||||||||||||||||
Tax benefit | |||||||||||||||||
Share-based compensation expense, net of tax | $ | $ | $ | ||||||||||||||
Shares | Fair Value (1) | ||||||||||
Non-vested balance at December 31, 2021 | $ | ||||||||||
Granted | $ | ||||||||||
Vested | ( | $ | |||||||||
Forfeited | ( | $ | |||||||||
Non-vested balance at December 31, 2022 | $ |
Shares | Fair Value (1) | ||||||||||
Non-vested balance at December 31, 2021 | $ | ||||||||||
Granted | $ | ||||||||||
Vested | ( | $ | |||||||||
Forfeited | ( | $ | |||||||||
Non-vested balance at December 31, 2022 | $ |
Notional Amount | Net Amount of Derivative Assets Presented in the Statements of Financial Position (1) | Net Amount of Derivative Liabilities Presented in the Statements of Financial Position | |||||||||||||||||||||||||||||||||
As of December 31 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||
Foreign exchange contracts | |||||||||||||||||||||||||||||||||||
Accounted for as hedges | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Not accounted for as hedges (3) | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
2022 | 2021 | 2020 | ||||||||||||||||||
(Loss) gain recognized in Accumulated other comprehensive loss | $ | ( | $ | $ | ||||||||||||||||
Years Ended December 31 | ||||||||||||||||||||
2022 | 2021 | 2020 | ||||||||||||||||||
Total revenue | $ | $ | ( | $ | ( | |||||||||||||||
Compensation and benefits | ||||||||||||||||||||
Interest expense | ( | |||||||||||||||||||
Total | $ | $ | ( | $ | ( |
Fair Value Measurements Using | |||||||||||||||||||||||
Balance at December 31, 2022 | 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) | $ | $ | $ | $ | |||||||||||||||||||
Other investments | |||||||||||||||||||||||
Government bonds | $ | $ | $ | $ | |||||||||||||||||||
Derivatives (2) | |||||||||||||||||||||||
Gross foreign exchange contracts | $ | $ | $ | $ | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Derivatives (2) | |||||||||||||||||||||||
Gross foreign exchange contracts | $ | $ | $ | $ |
Fair Value Measurements Using | |||||||||||||||||||||||
Balance at December 31, 2021 | 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) | $ | $ | $ | $ | |||||||||||||||||||
Other investments | |||||||||||||||||||||||
Government bonds | $ | $ | $ | $ | |||||||||||||||||||
Derivatives (2) | |||||||||||||||||||||||
Gross foreign exchange contracts | $ | $ | $ | $ | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Derivatives (2) | |||||||||||||||||||||||
Gross foreign exchange contracts | $ | $ | $ | $ |
2022 | 2021 | ||||||||||||||||||||||
As of December 31 | Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||||||||
Current portion of long-term debt | $ | $ | $ | $ | |||||||||||||||||||
Long-term debt | $ | $ | $ | $ |
As of December 31 | Total | United States | Americas other than U.S. | United Kingdom | Ireland | Other Europe, Middle East, & Africa | Asia Pacific | ||||||||||||||||||||||||||||||||||
2022 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
2021 | $ | $ | $ | $ | $ | $ | $ |
(a) | (1) and (2). The following documents have been included in Part II, Item 8. | |||||||
Report of | ||||||||
Consolidated Statements of Financial Position — As of December 31, 2022 and 2021 | ||||||||
Consolidated Statements of Income — Years Ended December 31, 2022, 2021, and 2020 | ||||||||
Consolidated Statements of Comprehensive Income — Years Ended December 31, 2022, 2021 and 2020 | ||||||||
Consolidated Statements of Shareholders’ Equity — Years Ended December 31, 2022, 2021 and 2020 | ||||||||
Consolidated Statements of Cash Flows — Years Ended December 31, 2022, 2021 and 2020 | ||||||||
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) | |||||||||||
Articles of Association. | |||||||||||
3.1* | |||||||||||
Instruments Defining the Rights of Security Holders, Including Indentures. | |||||||||||
4.1* | |||||||||||
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* | |||||||||||
4.7* | |||||||||||
4.8* | |||||||||||
4.9* | |||||||||||
4.10* | |||||||||||
4.11* | |||||||||||
4.12* | |||||||||||
4.13* | |||||||||||
4.14* | |||||||||||
4.15* | |||||||||||
4.16* | |||||||||||
4.17* | |||||||||||
4.18* | |||||||||||
4.19* | |||||||||||
4.20* | |||||||||||
4.21* | |||||||||||
4.22* | |||||||||||
4.23* | |||||||||||
4.24* | |||||||||||
4.25 | |||||||||||
4.26* | |||||||||||
4.27* | |||||||||||
4.28* | |||||||||||
4.29* | |||||||||||
4.30* | |||||||||||
4.31* | |||||||||||
4.32* | |||||||||||
4.33* | |||||||||||
4.34* | |||||||||||
4.35* | |||||||||||
10.10*# | |||||||||||
10.11*# | |||||||||||
10.12*# | |||||||||||
10.13*# | |||||||||||
10.14*# | |||||||||||
10.15*# | |||||||||||
10.16*# | |||||||||||
10.17*# | |||||||||||
10.18*# | |||||||||||
10.19*# | |||||||||||
10.20*# | |||||||||||
10.21*# | |||||||||||
10.22*# | |||||||||||
10.23*# | |||||||||||
10.24*# | |||||||||||
10.25*# | |||||||||||
10.26*# | |||||||||||
10.27*# | |||||||||||
10.28*# | |||||||||||
10.29*# | |||||||||||
10.30*# | |||||||||||
10.31*# | |||||||||||
10.32*# | |||||||||||
10.33*# | |||||||||||
10.34*# | |||||||||||
10.35*# | |||||||||||
10.36*# | |||||||||||
10.37*# | |||||||||||
10.38*# | |||||||||||
10.39*# | |||||||||||
10.40*# | |||||||||||
10.41*# | |||||||||||
10.42*# | |||||||||||
10.43*# | |||||||||||
10.44*# | |||||||||||
10.45*# | |||||||||||
10.46*# | |||||||||||
10.47*# | |||||||||||
10.48*# | |||||||||||
10.49*# | |||||||||||
10.50*# | |||||||||||
10.51*# | |||||||||||
10.52*# | |||||||||||
10.53*# | |||||||||||
10.54*# | |||||||||||
10.55*# | |||||||||||
10.56*# | |||||||||||
10.57*# | |||||||||||
10.58*# | |||||||||||
10.59*# | |||||||||||
10.60*# | |||||||||||
10.61# | |||||||||||
10.62*# | |||||||||||
10.63*# | |||||||||||
10.64*# | |||||||||||
10.65*# | |||||||||||
10.66*# | |||||||||||
10.67*# | |||||||||||
10.68*# | |||||||||||
10.69*# | |||||||||||
10.70*# | |||||||||||
10.71# | |||||||||||
10.72*# | |||||||||||
10.73*# | |||||||||||
10.74*# | |||||||||||
10.75* | |||||||||||
10.76*# | |||||||||||
Subsidiaries of the Registrant. | |||||||||||
21.1 | |||||||||||
Subsidiary Guarantors and Issuers of Guaranteed Securities and Affiliates Whose Securities Collateralize Securities of the Registrant | |||||||||||
22.1 | |||||||||||
Consents of Experts and Counsel. | |||||||||||
23 | |||||||||||
Rule 13a-14(a)/15d-14(a) Certifications. | |||||||||||
31.1. | |||||||||||
31.2. | |||||||||||
Section 1350 Certifications. | |||||||||||
32.1. | |||||||||||
32.2. | |||||||||||
XBRL Exhibits. | |||||||||||
Interactive Data Files. The following materials are filed electronically with this Annual Report on Form 10-K: | |||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document. | ||||||||||
101.CAL | Inline XBRL Taxonomy Calculation Linkbase Document. | ||||||||||
101.DEF | Inline XBRL Taxonomy Definition Linkbase Document. | ||||||||||
101.PRE | Inline XBRL Taxonomy Presentation Linkbase Document. | ||||||||||
101.LAB | Inline XBRL Taxonomy Calculation Linkbase Document. | ||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)* |
Aon plc | |||||||||||||||||
By: | /s/ GREGORY C. CASE | ||||||||||||||||
Gregory C. Case, Chief Executive Officer | |||||||||||||||||
Date: | February 17, 2023 |
Signature | Title | Date | ||||||||||||
/s/ GREGORY C. CASE | Chief Executive Officer and Director (Principal Executive Officer) | February 17, 2023 | ||||||||||||
Gregory C. Case | ||||||||||||||
/s/ LESTER B. KNIGHT | Non-Executive Chairman and Director | February 17, 2023 | ||||||||||||
Lester B. Knight | ||||||||||||||
/s/ JIN-YONG CAI | Director | February 17, 2023 | ||||||||||||
Jin-Yong Cai | ||||||||||||||
/s/ JEFFREY C. CAMPBELL | Director | February 17, 2023 | ||||||||||||
Jeffrey C. Campbell | ||||||||||||||
/s/ FULVIO CONTI | Director | February 17, 2023 | ||||||||||||
Fulvio Conti | ||||||||||||||
/s/ CHERYL A. FRANCIS | Director | February 17, 2023 | ||||||||||||
Cheryl A. Francis | ||||||||||||||
/s/ ADRIANA KARABOUTIS | Director | February 17, 2023 | ||||||||||||
Adriana Karaboutis | ||||||||||||||
/s/ J. MICHAEL LOSH | Director | February 17, 2023 | ||||||||||||
J. Michael Losh | ||||||||||||||
/s/ RICHARD C. NOTEBAERT | Director | February 17, 2023 | ||||||||||||
Richard C. Notebaert | ||||||||||||||
/s/ GLORIA SANTONA | Director | February 17, 2023 | ||||||||||||
Gloria Santona | ||||||||||||||
/s/ BYRON SPRUELL | Director | February 17, 2023 | ||||||||||||
Byron Spruell | ||||||||||||||
/s/ CAROLYN Y. WOO | Director | February 17, 2023 | ||||||||||||
Carolyn Y. Woo | ||||||||||||||
/s/ CHRISTA DAVIES | Chief Financial Officer (Principal Financial Officer) | February 17, 2023 | ||||||||||||
Christa Davies | ||||||||||||||
/s/ MICHAEL NELLER | Global Controller (Principal Accounting Officer) | February 17, 2023 | ||||||||||||
Michael Neller |
Exhibit 4.25 |
EXECUTION VERSION |
Aon plc - Worldwide Subsidiaries as of December 31, 2022 | Exhibit 21 | |||||||
Name | Country | State/Province | ||||||
Admiseg S.A. | Argentina | |||||||
Aon Argentina Corredores de Reaseguros S.A. | Argentina | |||||||
Aon Risk Services Argentina S.A. | Argentina | |||||||
Aon Soluciones S.A. | Argentina | |||||||
Asevasa Argentina S.A. | Argentina | |||||||
Marinaro Dundas S.A. | Argentina | |||||||
SN Re S.A. | Argentina | |||||||
Swire Blanch MSTC II S.A. | Argentina | |||||||
Swire Blanch MSTC S.A. | Argentina | |||||||
Aon Advisory Australia Pty Limited | Australia | |||||||
Hogg Robinson Financial Services Limited | Australia | |||||||
Affinity Risk Partners (Brokers) Pty Ltd | Australia | |||||||
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 Reinsurance Australia Limited | Australia | |||||||
Aon Charitable Foundation Pty Ltd | Australia | |||||||
Aon Consolidated Group Pty Ltd | Australia | |||||||
Aon Corporation Australia Limited | Australia | |||||||
Aon Group Pty Ltd | Australia | |||||||
Aon Hewitt Financial Advice Limited | Australia | |||||||
Aon Holdings Australia Pty Ltd | Australia | |||||||
Aon Product Design & Development Australia Pty Ltd | Australia | |||||||
Aon Risk & Asset Management Pty Ltd | Australia | |||||||
Aon Risk Services Australia Limited | Australia | |||||||
Aon Services Pty Ltd | Australia |
Name | Country | State/Province | ||||||
Aon Superannuation Pty Ltd | Australia | |||||||
Cut-e Australia Pty Ltd | Australia | |||||||
HIA Insurance Services Pty Ltd | Australia | |||||||
One Underwriting Pty Ltd | Australia | |||||||
Aon Austria GmbH | Austria | |||||||
Aon Holdings Austria GmbH | Austria | |||||||
Aon Jauch & Hübener Gesellschaft m.b.H. | 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./S.A. | Belgium | |||||||
Aon Belgium B.V. | Belgium | |||||||
Crion N.V. | Belgium | |||||||
Probabilitas N.V./S.A. | Belgium | |||||||
Marilla Reinsurance Ltd. | Bermuda | |||||||
Marilla Capital Ltd. | Bermuda | |||||||
Aon Finance Bermuda 1 Ltd. | Bermuda | |||||||
Marilla Investment Management Ltd. | Bermuda | |||||||
Marilla Reinsurance Holdings Ltd. | Bermuda | |||||||
Aon (Bermuda) Ltd. | Bermuda | |||||||
Aon Bermuda Holding Company Limited | Bermuda | |||||||
Aon Bermuda QI Holdings Ltd. | Bermuda | |||||||
Aon Group (Bermuda) Ltd. | Bermuda | |||||||
Aon Insurance Managers (Bermuda) Ltd. | Bermuda | |||||||
One Underwriting (Bermuda) Ltd. | Bermuda | |||||||
International Risk Management Group Ltd. | Bermuda | |||||||
White Rock Insurance (Americas) Ltd. | Bermuda | |||||||
White Rock Insurance (SAC) Ltd. | Bermuda |
Name | Country | State/Province | ||||||
White Rock Services (Bermuda) 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 | |||||||
ADM Administradora de Benefícios Ltda. | Brazil | |||||||
Aon Affinity do Brasil Servicos e Corretora de Seguros Ltda. | Brazil | |||||||
Associação Instituto Aon | Brazil | |||||||
Aon Brasil Corretora de Resseguros Ltda. | Brazil | |||||||
Aon Holdings Corretores de Seguros Ltda. | Brazil | |||||||
Blist – Soluções, Assistência e Serviços Empresariais Ltda. | Brazil | |||||||
Aon Solutions Canada Inc. | Canada | Nova Scotia | ||||||
Groupe-conseil Aon Inc. | Canada | Quebec | ||||||
Aon Solutions Canada, a Partnership | Canada | Ontario | ||||||
Aon Solutions Corp. | Canada | Nova Scotia | ||||||
7193599 Canada Inc. | Canada | Ontario | ||||||
Aon Reinsurance Canada ULC | Canada | Nova Scotia | ||||||
Aon Canada Holdings N.S. ULC | Canada | Nova Scotia | ||||||
Aon Canada Inc. | Canada | Ontario | ||||||
Aon Direct Group Inc. | Canada | Ontario | ||||||
Aon Finance Canada 1 Corp. | Canada | Ontario | ||||||
Aon Finance Canada 2 Corp. | Canada | Ontario | ||||||
Aon Finance N.S. 1, ULC | Canada | Nova Scotia | ||||||
Aon Finance N.S. 5, ULC | Canada | Nova Scotia | ||||||
Aon Investments Canada Inc. | Canada | Ontario | ||||||
Aon Parizeau Inc. | Canada | Quebec | ||||||
Aon Reed Stenhouse Inc. | Canada | Ontario | ||||||
Aon Securities Investment Management Inc. | Canada | Ontario | ||||||
Coles Aon Partnership | Canada | British Columbia | ||||||
Aon Solutions 3 Limited | Canada | British Columbia |
Name | Country | State/Province | ||||||
IAO Actuarial Consulting Services Inc. | Canada | Ontario | ||||||
J. Allan Brown Consultants, Inc. | Canada | British Columbia | ||||||
K & K Insurance Brokers, Inc. Canada | Canada | Ontario | ||||||
Linx Underwriting Solutions Inc. | Canada | Ontario | ||||||
Minet Inc. | Canada | Quebec | ||||||
Townsend (Global Real Estate) GP Ontario Inc. | Canada | Ontario | ||||||
USLP Underwriting Solutions LP | Canada | Alberta | ||||||
Stroz Friedberg Canada Inc. | Canada | Ontario | ||||||
Aon Finance N.S. 9, ULC | Canada | Nova Scotia | ||||||
Aon Insurance Managers (Cayman) Ltd. | Cayman Islands | |||||||
Aon Risk Solutions (Cayman) Ltd. | Cayman Islands | |||||||
Aon Chile Corredores de Reaseguros Limitada | Chile | |||||||
Aon Risk Services (Chile) Corredores de Seguros Limitada | Chile | |||||||
Aon Risk Services Holdings (Chile) Ltda. | Chile | |||||||
Inversiones Benfield Chile Ltda. | Chile | |||||||
Aon Enterprise Solutions (Shanghai) Co., Ltd. | China | |||||||
Aon-COFCO Insurance Brokers Co., Ltd. | China | |||||||
Aon Corporation (Beijing Representative Office) | China | |||||||
Aon Reinsurance Colombia Limitada Corredores de Reaseguros | Colombia | |||||||
Aon Risk Services Colombia S.A. Corredores de Seguros | Colombia | |||||||
Salud, Riesgos y Recursos Humanos Consultores Ltda. | Colombia | |||||||
Tecsefin, S.A. en Liquidación | Colombia | |||||||
Aon Cyprus Insurance Broker Company Limited | Cyprus | |||||||
Aon Solutions Cyprus Limited | Cyprus | |||||||
Aon Central and Eastern Europe a.s. | Czech Republic | |||||||
Crystal Reinsurance s.r.o. | Czech Republic | |||||||
ADIS A/S | Denmark | |||||||
Aon Assessment Denmark A/S | Denmark | |||||||
Aon Denmark A/S | Denmark |
Name | Country | State/Province | ||||||
Aon Consulting Ecuador S.A. | Ecuador | |||||||
Aon Risk Services Ecuador S.A. Agencia Asesora Productora de Seguros | Ecuador | |||||||
UADBB Aon Baltic (Estonia Branch) | Estonia | |||||||
Aon (Fiji) Pte Limited | Fiji | |||||||
ADIS A/S, Suomen sivuliike | Finland | |||||||
Aon Assessment (Finland) Oy | Finland | |||||||
Aon Finland Oy | Finland | |||||||
Aon Services S.à r.l. | France | |||||||
Aon France | France | |||||||
Aon Holdings France SNC | France | |||||||
TRIUM GmbH Insurance Broker | Germany | |||||||
Karl Köllner GmbH Versicherungsmakler | Germany | |||||||
Karl Köllner GmbH Marine Insurance Brokers | Germany | |||||||
Aon Beteiligungsmanagement Deutschland GmbH & Co. KG | Germany | |||||||
Aon Versicherungsmakler Deutschland GmbH | Germany | |||||||
Aon Deutschland Beteiligungs GmbH | Germany | |||||||
Aon Solutions Germany GmbH | Germany | |||||||
Aon Trust Germany GmbH | Germany | |||||||
Aon Holding Deutschland GmbH | Germany | |||||||
Aon Pensions Insurance Broker GmbH | Germany | |||||||
Aon Risiko- und Unternehmensberatungs GmbH | Germany | |||||||
Aon Versicherungsberatungs GmbH | Germany | |||||||
Aon Assessment GmbH | Germany | |||||||
Hamburger Gesellschaft zur Forderung des Versicherungswesens mbH | Germany | |||||||
One Underwriting Agency GmbH | Germany | |||||||
PRORÜCK Rückversicherungs-Aktiengesellschaft | Germany | |||||||
UNIT Versicherungsmakler GmbH | Germany | |||||||
UnitedPensions Deutschland AG | Germany | |||||||
Wannet Sports Insurance GmbH | Germany |
Name | Country | State/Province | ||||||
Aon Insurance Managers Gibraltar Limited | Gibraltar | |||||||
White Rock Insurance (Gibraltar) PCC Limited | Gibraltar | |||||||
Aon Greece S.A. | Greece | |||||||
Aon Solutions Greece S.A. | Greece | |||||||
Aon Insurance Managers (Guernsey) Limited | Guernsey | |||||||
Aon Insurance Managers (Holdings) Limited | Guernsey | |||||||
Aon PMI International Limited | Guernsey | |||||||
Aon Services (Guernsey) Limited | Guernsey | |||||||
Lake Erie Real Estate General Partner Limited | Guernsey | |||||||
Lincolnshire Insurance Company PCC Limited | Guernsey | |||||||
Lombard Trustee Company Limited | Guernsey | |||||||
Townsend Lake Constance GP Limited | Guernsey | |||||||
White Rock Insurance (Guernsey) ICC Limited | Guernsey | |||||||
White Rock Insurance Company PCC Limited | Guernsey | |||||||
Aon Reinsurance China Limited | Hong Kong | |||||||
Aon Solutions 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 Securities (Hong Kong) Limited | Hong Kong | |||||||
Aon Services Hong Kong Limited | Hong Kong | |||||||
Essar Insurance Services Limited | Hong Kong | |||||||
Townsend Group Asia Limited | Hong Kong | |||||||
Aon Hungary Insurance Brokers Risk and Human Consulting LLC | Hungary | |||||||
Aon India Insurance Brokers Private Limited | India | |||||||
Aon Consulting Private Limited | India | |||||||
PT Aon Reinsurance Brokers Indonesia | Indonesia |
Name | Country | State/Province | ||||||
PT Aon Indonesia | Indonesia | |||||||
Aon Bahrain W.L.L. (Iraq Branch) | Iraq | |||||||
Aon Solutions UK Limited (IRL Investment Branch) | Ireland | |||||||
Aon Assessment (Ireland) Limited | Ireland | |||||||
Aon Broking Technology Limited | Ireland | |||||||
Aon Commercial Services and Operations Ireland Limited | Ireland | |||||||
Aon Commercial Services Ireland Limited | Ireland | |||||||
Aon Solutions Ireland Limited | Ireland | |||||||
Aon Insurance Managers (Dublin) Limited | Ireland | |||||||
Aon Insurance Managers (Shannon) Limited | Ireland | |||||||
Aon Investment Holdings Ireland Limited | Ireland | |||||||
Aon Treasury Ireland Limited | Ireland | |||||||
Bacon & Woodrow Partnerships (Ireland) Limited | Ireland | |||||||
Becketts (Trustees) Limited | Ireland | |||||||
Cut-e Assessment Global Holdings Limited | Ireland | |||||||
Aon Assessment Solutions Europe Limited | Ireland | |||||||
Aon Ireland Limited | Ireland | |||||||
Private Clients Trustees Limited | Ireland | |||||||
Randolph Finance Unlimited Company | Ireland | |||||||
The Aon Ireland MasterTrustee DAC | Ireland | |||||||
Aon Reem Company Limited | Ireland | |||||||
Aon plc | Ireland | |||||||
Driftbrook Unlimited Company | Ireland | |||||||
Aon Reinsurance Israel Ltd. | 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 |
Name | Country | State/Province | ||||||
Ronnie Elementary Insurance Agency Ltd. | Israel | |||||||
Aon Reinsurance Italia S.p.A. | Italy | |||||||
Aon Advisory and Solutions S.r.l. | Italy | |||||||
Aon Italia S.r.l. | Italy | |||||||
Aon S.p.A. Insurance & Reinsurance Brokers | Italy | |||||||
Coverall S.r.l. Insurance and Reinsurance Underwriting Agency | Italy | |||||||
Global Safe Insurance Broker S.r.l. | Italy | |||||||
One Underwriting S.r.l. | Italy | |||||||
Aon Assessment Solutions Europe Limited (Italy Branch) | Italy | |||||||
Aon Group Japan Limited | Japan | |||||||
Aon Solutions Japan Ltd. | Japan | |||||||
Aon Holdings Japan Ltd. | Japan | |||||||
Aon Japan Ltd. | Japan | |||||||
PayPay Insurance Service Corporation | Japan | |||||||
Aon Consulting Kazakhstan LLP | Kazakhstan | |||||||
Insurance Broker Aon Kazakhstan LLP | Kazakhstan | |||||||
Aon Hewitt Consulting Korea Inc. | Korea, Republic Of (South) | |||||||
Aon Korea Inc. | Korea, Republic Of (South) | |||||||
UADBB Aon Baltic (Latvia Branch) | Latvia | |||||||
Aon Insurance Managers (Liechtenstein) AG | Liechtenstein | |||||||
One Underwriting UAB | Lithuania | |||||||
UADBB Aon Baltic | Lithuania | |||||||
Aon Holdings Luxembourg S.a.r.l. | Luxembourg | |||||||
Aon Neudorf Finance S.a.r.l. | Luxembourg | |||||||
Aon Re Canada Holdings S.a.r.l. | Luxembourg | |||||||
Aon Global Operations Luxembourg S.a.r.l. | Luxembourg | |||||||
Aon Randolph Luxembourg S.a.r.l. | Luxembourg | |||||||
TG Voltesso GP S.a.r.l. | Luxembourg | |||||||
Aon Insurance Managers (Luxembourg) S.A. | Luxembourg |
Name | Country | State/Province | ||||||
Aon Global Operations SE | Luxembourg | |||||||
Aon Global Risk Consulting Luxembourg S.à r.l. | Luxembourg | |||||||
Aon Belgium B.V. (Luxembourg Branch) | Luxembourg | |||||||
Aon Hong Kong Limited (Macau Branch) | Macau | |||||||
Aon Reinsurance Malaysia Limited | Malaysia | |||||||
Aon Malaysia Sdn. Bhd. | Malaysia | |||||||
Aon Insurance Brokers (Malaysia) Sdn. Bhd. | Malaysia | |||||||
Aon Malta Affinity Services Limited | Malta | |||||||
Aon Insurance Managers (Malta) PCC Limited | Malta | |||||||
Aon Services (Malta) Limited | Malta | |||||||
White Rock Insurance (Europe) PCC Limited | Malta | |||||||
White Rock Insurance (Netherlands) PCC Limited | Malta | |||||||
Aon (Isle of Man) Limited | Man, Isle of | |||||||
Aon Corporate Services (Isle of Man) Limited | Man, Isle of | |||||||
Aon Holdings (Isle of Man) Limited | Man, Isle of | |||||||
Aon Insurance Managers (Isle of Man) Limited | Man, Isle of | |||||||
White Rock Insurance PCC (Isle of Man) Limited | Man, Isle of | |||||||
Aon Solutions Ltd | Mauritius | |||||||
Aon Mauritius Holdings | Mauritius | |||||||
Aon Mexico Intermediario de Reaseguro, S.A. de C.V. | Mexico | |||||||
E.R.N. Evaluacion de Riesgos Naturales y Antropogenicos, S.A. de C.V. | Mexico | |||||||
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 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, 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 |
Name | Country | State/Province | ||||||
Aon Acore S.a.r.l. | Morocco | |||||||
Casablanca Intermediation Company S.a.r.l. | Morocco | |||||||
Aon Delta Netherlands B.V. | Netherlands | |||||||
Aon International B.V. | Netherlands | |||||||
Aon 4 B.V. | Netherlands | |||||||
Alexander & Alexander Holding B.V. | Netherlands | |||||||
Aon Americas Holdings B.V. | Netherlands | |||||||
Aon APAC Holdings B.V. | Netherlands | |||||||
Aon Cash Management B.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 B.V. | Netherlands | |||||||
Aon Investments Netherlands B.V. | Netherlands | |||||||
Aon Holdings B.V. | Netherlands | |||||||
Aon Holdings International B.V. | Netherlands | |||||||
Aon Holdings Mid Europe B.V. | Netherlands | |||||||
Aon LATAM Holdings N.V. | Netherlands | |||||||
Aon Meeùs Assurantiën B.V. | Netherlands | |||||||
Aon Nederland C.V. | Netherlands | |||||||
Aon Netherlands Operations B.V. | Netherlands | |||||||
Aon Real Estate B.V. | Netherlands | |||||||
Aon Risk Services EMEA B.V. | Netherlands | |||||||
Aon Trust Services B.V. | Netherlands | |||||||
Bekouw Mendes C.V. | Netherlands | |||||||
Celinvest Amsterdam B.V. | Netherlands | |||||||
One Underwriting B.V. | Netherlands | |||||||
Aon Reinsurance New Zealand Limited | New Zealand |
Name | Country | State/Province | ||||||
Aon Holdings New Zealand | New Zealand | |||||||
Aon New Zealand | New Zealand | |||||||
Aon New Zealand Group | New Zealand | |||||||
Aon Product Design and Development New Zealand Limited | New Zealand | |||||||
Aon Norway AS | Norway | |||||||
Cut-e Nordic AS | Norway | |||||||
Aon Assessment (Norway) AS | Norway | |||||||
Aon Majan LLC | Oman | |||||||
Aon Benfield Panama S.A. | Panama | |||||||
Aon Broking Services S.A. | Panama | |||||||
Aon Solutions (PNG) Limited | Papua New Guinea | |||||||
Aon Risk Services (PNG) Limited | Papua New Guinea | |||||||
Aon Superannuation (PNG) Limited | Papua New Guinea | |||||||
Aon Peru Corredores de Reaseguros S.A. | Peru | |||||||
Aon Peru Corredores de Seguros S.A. | Peru | |||||||
Aon Soluciones S.A.C. | Peru | |||||||
Aon Insurance and Reinsurance Brokers Philippines Inc. | Philippines | |||||||
Aon Polska Services Sp. z o.o. | Poland | |||||||
Aon Polska Sp. z o.o. | Poland | |||||||
Aon Sp. z o.o. | Poland | |||||||
Aon Portugal - Consultores, Unipessoal, Lda. | Portugal | |||||||
Aon Portugal, S.A. | Portugal | |||||||
Aon Reinsurance S.A. | Portugal | |||||||
Aon Reinsurance Puerto Rico, Inc. | Puerto Rico | |||||||
Aon Risk Solutions of Puerto Rico, Inc. | Puerto Rico | |||||||
Hewitt Insurance, Inc. | Puerto Rico | |||||||
Aon Qatar LLC | Qatar | |||||||
Aon Consulting Romania SRL | Romania | |||||||
Aon Romania Broker de Asigurare - Reasigurare SRL | Romania |
Name | Country | State/Province | ||||||
Aon Rus Insurance Brokers LLC | Russia | |||||||
Aon Rus LLC | Russia | |||||||
Aon Reinsurance Solutions Saudi Arabia LLC | Saudi Arabia | |||||||
Aon Hewitt Saudi Arabia LLC | Saudi Arabia | |||||||
Aon Arabia Insurance Brokers LLC | Saudi Arabia | |||||||
Aon Insurance Agencies Pte. Ltd. | Singapore | |||||||
Aon Randolph Singapore Pte. | Singapore | |||||||
Aon Global Operations SE (Singapore Branch) | Singapore | |||||||
Alexander & Alexander (Asia) Holdings Pte Ltd | Singapore | |||||||
Aon Reinsurance Solutions Asia Pte. Ltd. | Singapore | |||||||
Aon Solutions Singapore 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) Private Limited | Singapore | |||||||
Aon Randolph Singapore 2 Pte. Ltd. | Singapore | |||||||
Aon Randolph Singapore 3 Pte. Ltd. | Singapore | |||||||
Aon Bratislava s.r.o. | Slovakia | |||||||
Aon Central and Eastern Europe a.s. (Slovakia Branch) | Slovakia | |||||||
Mafube Risk and Insurance Consultants (Pty) Ltd | South Africa | |||||||
TM Insurance Brokers (Pty) Ltd | South Africa | |||||||
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) Ltd | South Africa | |||||||
Aon South Africa (Pty) Ltd | South Africa | |||||||
Newshelf 1151 (RF) (Pty) Ltd | South Africa | |||||||
Fundación Aon Espana | Spain |
Name | Country | State/Province | ||||||
Aon Reinsurance Iberia Correduria de Reaseguros, S.A.U. | Spain | |||||||
Aon Iberia Correduria de Seguros y Reaseguros, S.A.U. | Spain | |||||||
Aon Marketing Directo, S.A.U. | Spain | |||||||
Aon Southern Europe y Cia, S.L. | Spain | |||||||
Aon Consulting Services SA | Spain | |||||||
Grupo Innovac Sociedad Correduría de Seguros, S.A. | Spain | |||||||
Inspiring Benefits, S.L. | Spain | |||||||
One Underwriting Agencia de Suscripsión, S.L.U. | Spain | |||||||
CoverWallet Innovations, S.L.U. | Spain | |||||||
Aon Global Risk Consulting AB | Sweden | |||||||
Aon Solutions Sweden AB | Sweden | |||||||
Aon Sweden AB | Sweden | |||||||
Aon Assessment (Sweden) AB | Sweden | |||||||
Aon Insurance Managers (Switzerland) AG | Switzerland | |||||||
Aon Schweiz AG | Switzerland | |||||||
Assimedia SA | Switzerland | |||||||
Aon Reinsurance Italia S.p.A., Milano, Succursale di Maroggia (Switzerland Branch) | Switzerland | |||||||
Aon Management Consulting Taiwan Ltd. | Taiwan | |||||||
Aon Taiwan Ltd. | Taiwan | |||||||
Aon Solutions (Thailand) Ltd. | Thailand | |||||||
Aon (Thailand) Limited | Thailand | |||||||
Aon Consulting (Thailand) Limited | Thailand | |||||||
Aon Group (Thailand) Limited | Thailand | |||||||
Aon Re (Thailand) Limited | Thailand | |||||||
Aon Risk Services (Thailand) Limited | Thailand | |||||||
Aon Energy Caribbean Limited | Trinidad and Tobago | |||||||
Aon Solutions Turkey Danismanlik A.S. | Turkey | |||||||
Aon Sigorta ve Reasurans Brokerligi ve A.S. | Turkey | |||||||
J.S. Johnson & Company (Turks & Caicos) Limited | Turks And Caicos Islands |
Name | Country | State/Province | ||||||
Aon Ukraine LLC | Ukraine | |||||||
Aon Finland Oy (Rep. office) (Ukraine Branch) | Ukraine | |||||||
Aon (DIFC) Gulf Limited | United Arab Emirates | |||||||
Aon Reinsurance Solutions MENA Limited | United Arab Emirates | |||||||
Aon Solutions Middle East Limited | United Arab Emirates | |||||||
Aon Solutions Middle East Limited (Abu Dhabi branch) | United Arab Emirates | |||||||
Aon Management Services (Middle East) Limited | United Arab Emirates | |||||||
Aon Middle East Co LLC | United Arab Emirates | |||||||
Aon Retirement Solutions Limited | United Arab Emirates | |||||||
Cut-e Consult DMCC | United Arab Emirates | |||||||
Stroz Friedberg Risk Management Limited | United Arab Emirates | |||||||
Aon Middle East Consulting LLC | United Arab Emirates | |||||||
McLagan Partners, Inc. (Dubai Branch) | United Arab Emirates | |||||||
Aon Neudorf Finance S.a.r.l. (Dubai Branch) | United Arab Emirates | |||||||
Aon Investments Europe Limited | United Kingdom | |||||||
Aon Russell Limited | United Kingdom | |||||||
Aon Finance UK 3 Limited | United Kingdom | |||||||
Aon Finance UK 4 Limited | United Kingdom | |||||||
Aon Minet Pension Trustees Limited | United Kingdom | |||||||
Aon Finance UK 5 Limited | United Kingdom | |||||||
Acumen Credit Insurance Brokers Limited | United Kingdom | |||||||
Alexander Clay | United Kingdom | |||||||
Aon ANZ Holdings Limited | United Kingdom | |||||||
Aon Assessment (UK) Limited | United Kingdom | |||||||
Aon UK Holdings Limited | United Kingdom | |||||||
Aon Consulting Financial Services Limited | United Kingdom | |||||||
Aon Consulting Limited | United Kingdom | |||||||
Aon DC Trustee Limited | United Kingdom | |||||||
Aon Delta UK Limited | United Kingdom |
Name | Country | State/Province | ||||||
Aon Global Holdings 1 Limited | United Kingdom | |||||||
Aon Global Holdings 2 Limited | United Kingdom | |||||||
Aon Global Holdings plc | United Kingdom | |||||||
Aon Solutions UK Limited | United Kingdom | |||||||
Aon Holdings Limited | United Kingdom | |||||||
Aon Overseas Holdings Limited | United Kingdom | |||||||
Aon Pension Trustees Limited | United Kingdom | |||||||
Aon Global Limited | United Kingdom | |||||||
Aon Risk Services (NI) Limited | United Kingdom | |||||||
Aon Securities Limited | United Kingdom | |||||||
Aon Southern Europe UK Limited | United Kingdom | |||||||
Aon Trust Corporation Limited | United Kingdom | |||||||
Aon UK Group Limited | United Kingdom | |||||||
Aon UK Holdings Intermediaries Limited | United Kingdom | |||||||
Aon UK Limited | United Kingdom | |||||||
Aon UK Trustees Limited | United Kingdom | |||||||
Aon US & International Holdings Limited | United Kingdom | |||||||
Bacon & Woodrow Partnerships Limited | United Kingdom | |||||||
Beaubien Finance Limited | United Kingdom | |||||||
Beaubien UK Finance Limited | United Kingdom | |||||||
Benton Finance Limited | United Kingdom | |||||||
Contractsure Limited | United Kingdom | |||||||
CoSec 2000 Limited | United Kingdom | |||||||
Doveland Services Limited | United Kingdom | |||||||
E.W. Blanch Holdings Limited | United Kingdom | |||||||
Gotham Digital Science Ltd | United Kingdom | |||||||
Henderson Insurance Brokers Limited | United Kingdom | |||||||
Henderson Risk Management Limited | United Kingdom | |||||||
Aon Investments Limited | United Kingdom |
Name | Country | State/Province | ||||||
Aon Global Holdings Intermediaries Limited | United Kingdom | |||||||
International Space Brokers Europe Limited | United Kingdom | |||||||
International Space Brokers Limited | United Kingdom | |||||||
McLagan (Aon) Limited | United Kingdom | |||||||
Minet Group | United Kingdom | |||||||
Portus Consulting Limited | United Kingdom | |||||||
Portus Online LLP | United Kingdom | |||||||
SLE Worldwide Limited | United Kingdom | |||||||
Stroz Friedberg Limited | United Kingdom | |||||||
The Aon MasterTrustee Limited | United Kingdom | |||||||
Townsend Group Europe Limited | United Kingdom | |||||||
Aon Finance UK 1 Limited | United Kingdom | |||||||
Aon Randolph UK Limited | United Kingdom | |||||||
Aon Finance UK 2 Limited | United Kingdom | |||||||
McLagan Partners, Inc. (UK Branch) | United Kingdom | |||||||
One Underwriting B.V. (UK Branch) | United Kingdom | |||||||
Aon Belgium B.V. (UK Branch) | United Kingdom | |||||||
Blanch Americas Inc. | United States | Delaware | ||||||
E.W. Blanch International Inc. | United States | Delaware | ||||||
Access Plans USA, Inc. | United States | Oklahoma | ||||||
Affinity Insurance Services, Inc. | United States | Pennsylvania | ||||||
AIS Affinity Insurance Agency, Inc. | United States | California | ||||||
AIS Insurance Agency, Inc. | United States | Washington | ||||||
Alexander Reinsurance Intermediaries, Inc. | United States | New York | ||||||
Allen Insurance Associates, Inc. | United States | California | ||||||
Alliance HealthCard of Florida, Inc. | United States | Georgia | ||||||
Alliance HealthCard, Inc. | United States | Georgia | ||||||
American Insurance Services Corp. | United States | Texas | ||||||
AMXH, LLC | United States | Delaware |
Name | Country | State/Province | ||||||
Aon Benefit Solutions Inc. | United States | Oklahoma | ||||||
Aon Fac, Inc. | United States | Illinois | ||||||
Aon Reinsurance Holdings, Inc. | United States | Delaware | ||||||
Aon Re, Inc. | United States | Illinois | ||||||
Aon Chile Holdings, LLC | United States | Delaware | ||||||
Aon Consulting & Insurance Services | United States | California | ||||||
Aon Consulting, Inc. | United States | New York | ||||||
Aon Consulting, Inc. | United States | New Jersey | ||||||
Aon Corporation | United States | Delaware | ||||||
Aon Edge Insurance Agency, Inc. | United States | Florida | ||||||
Aon Finance US 1, LLC | United States | Delaware | ||||||
Aon Finance US 2, LLC | United States | Delaware | ||||||
Aon Financial & Insurance Solutions, Inc. | United States | California | ||||||
Aon Foundation | United States | Illinois | ||||||
Aon Group, Inc. | United States | Maryland | ||||||
Aon Investments USA Inc. | United States | Illinois | ||||||
Aon Insurance Agency LLC | United States | Delaware | ||||||
Aon Insurance Managers (USA) Inc. | United States | Vermont | ||||||
Aon International Holdings, Inc. | United States | Maryland | ||||||
Aon Life Agency of Texas, Inc. | United States | Texas | ||||||
Aon Mexico Holdings, LLC | United States | Delaware | ||||||
Aon Premium Finance, LLC | United States | Delaware | ||||||
Aon Private Risk Management Insurance Agency, Inc. | United States | Illinois | ||||||
Aon Property Risk Consulting, Inc. | United States | New York | ||||||
Aon Realty Services, Inc. | United States | Pennsylvania | ||||||
Aon Retirement Plan Advisors, LLC | United States | Delaware | ||||||
Aon Risk Consultants, Inc. | United States | Illinois | ||||||
Aon Risk Insurance Services West, Inc. | United States | California | ||||||
Aon Risk Services (Holdings) of Latin America, Inc. | United States | Delaware |
Name | Country | State/Province | ||||||
Aon Risk Services (Holdings) of the Americas, Inc. | United States | Illinois | ||||||
Aon Risk Services Central, Inc. | United States | Illinois | ||||||
Aon Risk Services Companies, Inc. | United States | Maryland | ||||||
Aon Risk Services Northeast, Inc. | United States | New York | ||||||
Aon Risk Services South, Inc. | United States | North Carolina | ||||||
Aon Risk Services Southwest, Inc. | United States | Texas | ||||||
Aon Risk Services, Inc. of Florida | United States | Florida | ||||||
Aon Risk Services, Inc. of Hawaii | United States | Hawaii | ||||||
Aon Risk Services, Inc. of Maryland | United States | Maryland | ||||||
Aon Risk Services, Inc. of Washington, D.C. | United States | District of Columbia | ||||||
Aon Securities LLC | United States | Delaware | ||||||
Aon Service Corporation | United States | Illinois | ||||||
Aon Services Group, Inc. | United States | Delaware | ||||||
Aon Special Risk Resources, Inc. | United States | Delaware | ||||||
Aon TC Holdings, Inc. | United States | New Jersey | ||||||
Aon Trust Company LLC | United States | Illinois | ||||||
Aon Underwriting Managers, Inc. | United States | Delaware | ||||||
Aon US Holdings 2, Inc. | United States | Delaware | ||||||
Aon US Holdings, Inc. | United States | Delaware | ||||||
Aon Ward Financial Corporation | United States | Ohio | ||||||
Aon/Albert G. Ruben Insurance Services, Inc. | United States | California | ||||||
ARM International Corp. | United States | New York | ||||||
ARM International Insurance Agency Corp. | United States | Ohio | ||||||
ARMRISK CORP. | United States | New Jersey | ||||||
AS Holdings, Inc. | United States | Delaware | ||||||
ASPN Insurance Agency, LLC | United States | Delaware | ||||||
Association of Rural and Small Town Americans | United States | Missouri | ||||||
Assurance Licensing Services, Inc. | United States | Illinois | ||||||
B E P International Corp. | United States | New Jersey |
Name | Country | State/Province | ||||||
Benefit Marketing Solutions, L.L.C. | United States | Oklahoma | ||||||
BMS Insurance Agency, L.L.C. | United States | Oklahoma | ||||||
Bowes & Company, Inc., of New York | United States | New York | ||||||
Cammack Health LLC | United States | New York | ||||||
Cananwill Corporation | United States | Delaware | ||||||
Cananwill, Inc. | United States | Pennsylvania | ||||||
Cananwill, Inc. | United States | California | ||||||
CEREP III Secondary Manager, LLC | United States | Delaware | ||||||
CFSSG Real Estate Partners I, LLC | United States | Delaware | ||||||
CFSSG Real Estate Partners II, LLC | United States | Delaware | ||||||
CIF-H GP LLC | United States | Delaware | ||||||
Citadel Insurance Managers, Inc. | United States | California | ||||||
Coalition for Benefits Equality and Choice | United States | California | ||||||
Custom Benefit Programs, Inc. | United States | New Jersey | ||||||
cut-e USA Inc. | United States | New York | ||||||
Elysium Digital, L.L.C. | United States | Delaware | ||||||
Financial & Professional Risk Solutions, Inc. | United States | Illinois | ||||||
Futurity Group, Inc. | United States | Nevada | ||||||
Gotham Digital Science, LLC | United States | Delaware | ||||||
GPE IV Korea Feeder General Partner, LLC | United States | Delaware | ||||||
GTCR/AAM Blocker Corp. | United States | Delaware | ||||||
HCI Townsend USA Fund Managers LLC | United States | Delaware | ||||||
Healthy Paws Pet Insurance LLC | United States | Washington | ||||||
Aon Solutions US, LLC | United States | Delaware | ||||||
Aon North America, Inc. | United States | Delaware | ||||||
Huntington T. Block Insurance Agency, Inc. | United States | District of Columbia | ||||||
Impact Forecasting, L.L.C. | United States | Illinois | ||||||
INPOINT, INC. | United States | Illinois | ||||||
International Risk Management (Americas), Inc. | United States | Ohio |
Name | Country | State/Province | ||||||
International Space Brokers, Inc. | United States | Virginia | ||||||
IRM/GRC Holding Inc. | United States | Delaware | ||||||
JDPT Manager, LLC | United States | Delaware | ||||||
Johnson Rooney Welch, Inc. | United States | California | ||||||
K & K Insurance Group, Inc. | United States | Indiana | ||||||
KVT GP, LLC | United States | Delaware | ||||||
Lake Tahoe II GP, LLC | United States | Delaware | ||||||
Lake Tahoe III GP, LLC | United States | Delaware | ||||||
Lake Tahoe IV GP, LLC | United States | Delaware | ||||||
McLagan Partners Asia, Inc. | United States | Delaware | ||||||
McLagan Partners, Inc. | United States | Delaware | ||||||
Farmington Administrative Services, LLC | United States | Connecticut | ||||||
Minet Holdings Inc. | United States | New York | ||||||
Minet Re North America, Inc. | United States | Georgia | ||||||
Modern Survey, Inc. | United States | Minnesota | ||||||
Muirfield Underwriters, Ltd. | United States | Delaware | ||||||
Paragon Strategic Solutions Inc. | United States | Delaware | ||||||
PathWise Solutions Group LLC | United States | Delaware | ||||||
Penn Square I, LLC | United States | Delaware | ||||||
Penn Square II, LLC | United States | Delaware | ||||||
Penn Square Manager I, LLC | United States | Delaware | ||||||
Penn Square Manager II, LLC | United States | Delaware | ||||||
PGOF I, LLC | United States | Delaware | ||||||
PGOF Manager I, LLC | United States | Ohio | ||||||
Premier Auto Finance, Inc. | United States | Delaware | ||||||
Private Equity Partnership Structures I, LLC | United States | Delaware | ||||||
Protective Marketing Enterprises, Inc. | United States | Tennessee | ||||||
SA Special Situations General Partner, LLC | United States | Delaware | ||||||
Scritch Inc. | United States | Texas |
Name | Country | State/Province | ||||||
Specialty Benefits, Inc. | United States | Indiana | ||||||
Strategic Manager-III, LLC | United States | Delaware | ||||||
Stroz Friedberg Inc. | United States | Delaware | ||||||
Stroz Friedberg Investigations LLC | United States | Delaware | ||||||
Stroz Friedberg, LLC | United States | New York | ||||||
The Key West Saxon Group, LLC | United States | Florida | ||||||
The Townsend Group, LLC | United States | Ohio | ||||||
Townsend Alpha Manager I, LLC | United States | Delaware | ||||||
Townsend Alpha Manager II, LLC | United States | Delaware | ||||||
Townsend Alpha Manager III, LLC | United States | Delaware | ||||||
Townsend Holdings LLC | United States | Delaware | ||||||
Townsend REF GP, LLC | United States | Delaware | ||||||
TownSquare Alpha Manager I-A, LLC | United States | Delaware | ||||||
TTG Core Plus Investments, LLC | United States | Delaware | ||||||
TTG German Investments I, LLC | United States | Ohio | ||||||
TTG Manager, LLC | United States | Delaware | ||||||
Underwriters Marine Services, Inc. | United States | Louisiana | ||||||
Ward Financial Group, Inc. | United States | Ohio | ||||||
West Lake General Partner, LLC | United States | Delaware | ||||||
West Lake II GP, LLC | United States | Delaware | ||||||
White Rock (District of Columbia) PCC Ltd. | United States | District of Columbia | ||||||
White Rock USA Ltd. | United States | Vermont | ||||||
Worldwide Integrated Services Company | United States | Texas | ||||||
Wrapid Specialty, Inc. | United States | California | ||||||
WT Government Services, LLC | United States | Delaware | ||||||
WT Technologies, LLC | United States | Delaware | ||||||
Townsend Great Lakes and Plains GP, LLC | United States | Delaware | ||||||
Townsend Strategic Ventures GP, LLC | United States | Delaware | ||||||
CoverWallet, Inc. | United States | Delaware |
Name | Country | State/Province | ||||||
CoverWallet Science, Inc. | United States | Delaware | ||||||
Aon Advantage Funds Holding Corporation | United States | Delaware | ||||||
Aon Advantage Funds LLC | United States | Delaware | ||||||
Aon IP Advantage Fund GP LLC | United States | Delaware | ||||||
Townsend Opportunity Zone Fund GP, LLC | United States | Delaware | ||||||
Aon KHF Fund GP LLC | United States | Delaware | ||||||
Aon IP Advantage Blocker LLC | United States | Delaware | ||||||
Aon IP Advantage Fund LP | United States | Delaware | ||||||
Membership Leasing Trust | United States | Delaware | ||||||
Crescent Meadow, LLC | United States | Delaware | ||||||
NJM Fund GP, LLC | United States | Delaware | ||||||
KKT GP, LLC | United States | Delaware | ||||||
Aon M&G IP Credit Fund GP LLC | United States | Delaware | ||||||
Aon Investments Holdco LLC | United States | Delaware | ||||||
Aon Private Credit Opportunities GP LLC | United States | Delaware | ||||||
TTG FRELD General Partner, LLC | United States | Delaware | ||||||
East Sea GP, LLC | United States | Delaware | ||||||
Aon Latin America S.A. | Uruguay | |||||||
Marinaro Dundas SA | Uruguay | |||||||
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 Corporation | Aon Global Limited | Aon Corporation and Aon Global Holdings plc | ||||||||||||
Entity | Jurisdiction of Incorporation | 8.205% Junior Subordinated Notes due 2027 4.50% Senior Notes due 2028 3.75% Senior Notes due 2029 2.80% Senior Notes due 2030 6.25% Senior Notes due 2040 | 4.00% Senior Notes due 2023 3.50% Senior Notes due 2024 3.875% Senior Notes due 2025 2.875% Senior Notes due 2026 4.25% Senior Notes due 2042 4.45% Senior Notes due 2043 4.60% Senior Notes due 2044 4.75% Senior Notes due 2045 | 2.85% Senior Notes due 2027 2.05% Senior Notes due 2031 2.60% Senior Notes due 2031 5.00% Senior Notes due 2032 2.90% Senior Notes due 2051 3.90% Senior Notes due 2052 | ||||||||||
Aon plc | Ireland | Guarantor | Guarantor | Guarantor | ||||||||||
Aon Global Limited | UK | Guarantor | Issuer | Guarantor | ||||||||||
Aon Global Holdings plc | UK | Guarantor | Guarantor | Co-Issuer | ||||||||||
Aon Corporation | US | Issuer | Guarantor | Co-Issuer |
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-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-8 | 333-235296 | Pertaining to the registration of an additional 5,000,000 Class A Ordinary Shares to be issued pursuant to the Aon plc 2011 Incentive Plan | ||||||
S-3 | 333-238189 | Pertaining to the registration of debt securities, preference shares, Class A Ordinary Shares, share purchase contracts and share purchase units of Aon plc, debt securities of Aon Global Holdings plc, senior debt securities of Aon Corporation, and the related guarantees of each of Aon plc, AGH, Aon Corporation and Aon plc |
/s/ GREGORY C. CASE | |||||||||||
Date: | February 17, 2023 | Gregory C. Case Chief Executive Officer |
/s/ CHRISTA DAVIES | |||||||||||
Date: | February 17, 2023 | Christa Davies Chief Financial Officer |
/s/ GREGORY C. CASE | ||||||||
Gregory C. Case Chief Executive Officer | ||||||||
February 17, 2023 |
/s/ CHRISTA DAVIES | ||||||||
Christa Davies Chief Financial Officer | ||||||||
February 17, 2023 |
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Audit Information |
12 Months Ended |
---|---|
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Location | Chicago, Illinois |
Auditor Firm ID | 42 |
Auditor Name | Ernst & Young LLP |
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 2,646 | $ 1,308 | $ 2,018 |
Less: Net income attributable to noncontrolling interests | 57 | 53 | 49 |
Net income attributable to Aon shareholders | 2,589 | 1,255 | 1,969 |
Other comprehensive income (loss), net of tax: | |||
Change in fair value of financial instruments | (13) | 1 | 13 |
Foreign currency translation adjustments | (528) | (289) | 263 |
Postretirement benefit obligation | (211) | 277 | (101) |
Total other comprehensive income (loss) | (752) | (11) | 175 |
Less: Other comprehensive income (loss) attributable to noncontrolling interests | 0 | (1) | 3 |
Total other comprehensive income (loss) attributable to Aon shareholders | (752) | (10) | 172 |
Comprehensive income attributable to Aon shareholders | $ 1,837 | $ 1,245 | $ 2,141 |
Consolidated Statements of Financial Position (Parenthetical) - $ / shares |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Ordinary shares, nominal value (in dollars per share) | $ 0.01 | $ 0.01 |
Ordinary shares, authorized shares (in Shares) | 500,000,000.0 | 500,000,000.0 |
Ordinary shares, issued shares (in Shares) | 205,400,000 | 214,800,000 |
Consolidated Statements of Shareholders' Equity (Deficit) (Parenthetical) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Statement of Stockholders' Equity [Abstract] | |||
Dividends (in dollars per share) | $ 2.19 | $ 1.99 | $ 1.78 |
Basis of Presentation |
12 Months Ended |
---|---|
Dec. 31, 2022 | |
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. GAAP. The Consolidated Financial Statements include the accounts of Aon plc and all of its controlled subsidiaries (“Aon” or the “Company”). Intercompany accounts and transactions have been eliminated. The Consolidated Financial Statements include, in the opinion of management, all adjustments (consisting of normal recurring adjustments and reclassifications) necessary to present fairly the Company’s consolidated financial position, results of operations, and cash flows for all periods presented. 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, the disclosures of contingent assets and liabilities at the date of the Consolidated 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 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 Consolidated Financial Statements in future periods. Reclassification Certain amounts in prior periods' Consolidated Financial Statements have been reclassified to conform to the current year presentation. In prior periods, commercial paper issuances and repayments were included in Issuance of debt and Repayment of debt, respectively, in the Consolidated Statements of Cash Flows. The net amount of commercial paper activity is now disclosed separately in Commercial paper issuances, net of repayments in the Consolidated Statements of Cash Flows. For the year ended December 31, 2021 and December 31, 2020, commercial paper issuances reclassified from Issuance of debt was $4,478 million and $3,162 million, respectively, and commercial paper repayments reclassified from Repayment of debt was $3,807 million and $3,275 million, respectively. Further information on the gross commercial paper activity for the current and prior year periods is included within the Liquidity and Financial Conditions section of Part II Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. In November 2022, Aon incurred a non-cash pension settlement charge of $170 million in connection with the purchase of an annuity for portions of its U.S. pension plans. Aon has separately classified the non-cash pension settlement charge within Other, net on the Consolidated Statement of Cash Flows as an adjustment to reconcile Net income to Cash provided by operating activities for the period ended December 31, 2022. Prior year comparable balances have been reclassified to conform with current year presentation. For the years ended December 31, 2021 and 2020, Aon incurred insignificant non-cash pension settlement charges of $5 million and $2 million, respectively, which were presented as changes in assets and liabilities held within Pension, other postretirement and other postemployment liabilities in the Consolidated Statements of Cash Flows. See Note 11 “Employee Benefits” for further information regarding the non-cash settlement charges incurred. In prior periods, Cash paid for employee taxes on withholding shares were included with Proceeds from issuance of shares, and presented as Issuance of shares for employee benefit plans in the Consolidated Statements of Cash Flows. These items are now presented separately and prior year balances have been reclassified to conform to current year presentation. For the year ended December 31, 2021 and December 31, 2020, Proceeds from issuance of shares was $55 million and $44 million, respectively, and Cash paid for employee taxes on withholding shares was $185 million and $193 million, respectively.
|
Summary of Significant Accounting Principles and Practices |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Principles and Practices | Summary of Significant Accounting Principles and Practices Revenue Recognition The Company generates revenues primarily through commissions, compensation from insurance and reinsurance companies for services provided to them, and fees from customers. Commissions and fees for brokerage services vary depending upon several factors, which may include the amount of premium, the type of insurance or reinsurance coverage provided, the particular services provided to a client, insurer, or reinsurer, and the capacity in which the Company acts. Compensation from insurance and reinsurance companies includes: (1) fees for consulting and analytics services and (2) fees and commissions for administrative and other services provided to or on behalf of insurers. In Aon’s capacity as an insurance and reinsurance broker, the service promised to the customer is placement of an effective insurance or reinsurance policy, respectively. The customer obtains control over the services promised by the Company at the completion of the insurance or reinsurance policy placement process once coverage is effective. Judgment is not typically required when assessing whether the coverage is effective. Fees from clients for advice and consulting services are dependent on the extent and value of the services provided. Payment terms for the Company’s principal service lines are discussed below; the Company believes these terms are consistent with current industry practices. Significant financing components are typically not present in Aon’s arrangements. The Company recognizes revenue when control of the promised services is transferred to the customer in the amount that best reflects the consideration to which the Company expects to be entitled in exchange for those services. For arrangements where control is transferred over time, an input or output method is applied that represents a faithful depiction of the progress towards completion of the performance obligation. For arrangements that include variable consideration, the Company assesses whether any amounts should be constrained. For arrangements that include multiple performance obligations, the Company allocates consideration based on their relative fair values. Costs incurred by the Company in obtaining a contract are capitalized and amortized on a systematic basis that is consistent with the transfer of control of the services to which the asset relates, considering anticipated renewals when applicable. Certain contract related costs, including pre-placement brokerage costs, are capitalized as a cost to fulfill and are amortized on a systematic basis consistent with the transfer of control of the services to which the asset relates, which is generally less than one year. The Company has elected to apply practical expedients to not disclose the revenue related to unsatisfied performance obligations if (1) the contract has an original duration of 1 year or less, (2) the Company has recognized revenue for the amount in which it has the right to bill, and (3) the variable consideration is allocated entirely to an unsatisfied performance obligation which is recognized as a series of distinct goods or services that form a single performance obligation. Disaggregation of Revenue The following is a description of principal service lines from which the Company generates its revenue: Commercial Risk Solutions includes retail brokerage, specialty solutions, global risk consulting and captives management, and Affinity programs. Revenue primarily includes insurance commissions and fees for services rendered. Revenue is predominantly recognized at a point in time upon the effective date of the underlying policy (or policies), or for a limited number of arrangements, over the term of the arrangement using output measures to depict the transfer of control of the services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those services. For arrangements recognized over time, various output measures, including units delivered and time elapsed, are utilized to provide a faithful depiction of the progress towards completion of the performance obligation. Revenue is recorded net of allowances for estimated policy cancellations, which are determined based on an evaluation of historical and current cancellation data. Reimbursements received for out-of-pocket expenses are generally recorded as a component of revenue. Commissions and fees for brokerage services may be invoiced near the effective date of the underlying policy or over the term of the arrangement in installments during the policy period. Reinsurance Solutions includes treaty reinsurance, facultative reinsurance, Strategy and Technology Group, and capital markets. Revenue primarily includes reinsurance commissions and fees for services rendered. Revenue is predominantly recognized at a point in time upon the effective date of the underlying policy (or policies), or for a limited number of arrangements, over the term of the arrangement using output measures to depict the transfer of control of the services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those services. For arrangements recognized over time, various output measures, including units delivered and time elapsed, are utilized to provide a faithful depiction of the progress towards completion of the performance obligation. Commissions and fees for brokerage services may be invoiced at the inception of the reinsurance period for certain reinsurance brokerage, or more commonly, over the term of the arrangement in installments based on deposit or minimum premiums for most treaty reinsurance arrangements. Health Solutions includes consulting and brokerage, Human Capital, and Consumer Benefits Solutions. Revenue primarily includes insurance commissions and fees for services rendered. For brokerage commissions, revenue is predominantly recognized at a point in time upon the effective date of the underlying policy (or policies), or for a limited number of arrangements, over the term of the arrangement to depict the transfer of control of the services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those services using input or output measures, including units delivered or time elapsed, to provide a faithful depiction of the progress towards completion of the performance obligation. Revenue from health care exchange arrangements is typically recognized upon successful enrollment of participants. Commissions and fees for brokerage services may be invoiced at the effective date of the underlying policy or over the term of the arrangement in installments during the policy period. Payment terms for other services vary but are typically over the contract term in installments. Wealth Solutions includes retirement consulting and pension administration, as well as investments. Revenue recognized for these arrangements is predominantly recognized over the term of the arrangement using input or output measures to depict the transfer of control of the services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those services, or for certain arrangements, at a point in time upon completion of the services. For consulting arrangements recognized over time, revenue will be recognized based on a measure of progress that depicts the transfer of control of the services to the customer, utilizing an appropriate input or output measure to provide a reasonable assessment of the progress towards completion of the performance obligation including units delivered or time elapsed. Fees paid by customers for consulting services are typically charged on an hourly, project or fixed-fee basis, and revenue for these arrangements is typically recognized based on time incurred, days elapsed, or reports delivered. Revenue from time-and-materials or cost-plus arrangements are recognized as services are performed using input or output measures to provide a reasonable assessment of the progress towards completion of the performance obligation including hours worked, and revenue for these arrangements is typically recognized based on time and materials incurred. Revenue generated from the Company’s delegated investment business is generally earned as an agreed percentage based on AUM and, to a lesser extent, based on performance fees. Reimbursements received for out-of-pocket expenses are generally recorded as a component of revenue. Payment terms vary but are typically over the contract term in installments. Share-based Compensation Expense Share-based payments to employees, including grants of RSUs and PSAs, are measured based on grant date fair value. For purposes of measuring share-based compensation expense, the Company considered whether an adjustment to the observable market price is necessary to reflect material nonpublic information that is known to us at the time the award is granted. No adjustments were necessary for the years ended December 31, 2022, 2021, or 2020. 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 Postretirement Benefits The Company records net periodic cost relating to its pension and other postretirement 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 as reflected in Other income (expense) within the Consolidated Statements of Income. 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. Earnings per Share Basic earnings 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 earnings 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, 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 earnings 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 generally 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, 2022, Cash and cash equivalents and Short-term investments totaled $1,142 million compared to $836 million at December 31, 2021, an increase of $306 million. Of the total balance, $115 million and $160 million was restricted as to its use at December 31, 2022 and 2021, respectively. Included within Short-term investments as of December 31, 2022 and 2021 balances, respectively, were £60.1 million ($72.5 million at December 31, 2022 exchanges rates) and £84.3 million ($112.8 million at December 31, 2021 exchange rates) of operating funds required to be held by the Company in the U.K. by the FCA, a U.K.-based regulator. 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 Consolidated Statements of Financial Position. Funds held on behalf of clients represent fiduciary assets held by Aon for premiums collected from insureds but not yet remitted to insurance companies and claims collected from insurance companies but not yet remitted to insureds of $6.4 billion and $6.1 billion at December 31, 2022 and 2021, respectively. Fiduciary receivables were $9.5 billion and $8.3 billion at December 31, 2022 and 2021, 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 estimate for allowance for credit losses with respect to receivables is based on a combination of factors, including evaluation of forward-looking information, historical write-offs, aging of balances, and other qualitative and quantitative analyses. Receivables, net included an allowance for doubtful accounts of $76 million and $90 million at December 31, 2022 and 2021, respectively. Fixed Assets Fixed assets are stated at cost, less accumulated depreciation. Included in this category are certain capitalized costs incurred during the application development stage related to directly obtaining, developing, or enhancing internal use software. 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 purchase price over the fair value of the net assets acquired in the acquisition of a business. Goodwill is allocated to applicable reporting units. Upon disposition of a business entity, goodwill is allocated to the disposed entity based on the relative 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 may initially perform a qualitative analysis to determine if it is more likely than not that the goodwill balance is impaired. If a qualitative assessment is not performed or if a determination is made that it is not more likely than not that the value of the reporting unit exceeds its carrying amount, then the Company will perform a quantitative analysis. If the fair value of a reporting unit is determined to be greater than the carrying value of the reporting unit, goodwill is deemed not to be impaired and no further testing is necessary. If the fair value of a reporting unit is less than the carrying value, a goodwill impairment loss is recognized for the amount that the carrying amount of a reporting unit, including goodwill, exceeds its fair value limited to the total amount of the goodwill allocated to the reporting unit. Any resulting difference will be a charge to Amortization and impairment of intangible assets 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. We classify our intangible assets acquired as either customer-related and contract based, technology, tradenames, or other intangibles. Amortization basis and estimated useful lives by intangible asset type are generally as follows:
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 counterparties 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: (1) a hedge of the change in fair value of a recognized asset or liability or firm commitment (“fair value hedge”), (2) a hedge of the variability in cash flows from a recognized variable-rate asset or liability or forecasted transaction (“cash flow hedge”), and (3) 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, and the method for assessing the effectiveness of the hedge. 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 quarterly or more frequently if facts and circumstances require. For a derivative designated as a fair value hedging instrument, 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 change in fair value of a hedging instrument is recognized in Accumulated Other Comprehensive Income and subsequently reclassified to earnings in the same period the hedged item impacts earnings. For a net investment hedge, the change in fair value of the hedging instrument is recognized in Accumulate Other Comprehensive Income as part of the cumulative translation adjustment. 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 in the period of change. 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-U.S. 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. Further, gains and losses from the remeasurement of monetary assets and liabilities that are denominated in a non-functional currency of that entity are included in Other income (expense) within the Consolidated Statements of Income. 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. 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. The Company releases income tax effects from Accumulated other comprehensive loss using the portfolio approach. Leases The Company leases office facilities, equipment, and automobiles under operating and finance leases. The Company’s lease obligations are primarily for the use of office facilities. The Company evaluates if a leasing arrangement exists upon inception of a contract. A contract contains a lease if the contract conveys the right to control the use of identified tangible assets for a period of time in exchange for consideration. Identified property, plant, or equipment may include a physically distinct portion of a larger asset, or a portion of an asset that represents substantially all of the capacity of the asset but is not physically distinct. The Company assesses whether a contract implicitly contains the right to control the use of a tangible asset that is not already owned. In addition, the Company subleases certain real estate properties to third parties, which are classified as operating leases. The Company’s leases expire at various dates and may contain renewal, expansion or termination options. The exercise of lease renewal and expansion options are typically at the Company’s sole discretion and are only included in the determination of the lease term if the Company is reasonably certain to exercise the option. In addition, the Company’s lease agreements typically do not contain any material residual value guarantees or restrictive covenants. ROU assets and lease liabilities are based on the present value of the minimum lease payments over the lease term. The Company has elected the practical expedient related to lease and non-lease components, as an accounting policy election for all asset classes, which allows a lessee to not separate non-lease components from lease components and instead account for consideration received in a contract as a single lease component. The Company’s lease agreements may include initial direct costs and lease incentives. Initial direct costs are incremental costs of a lease that would not have been incurred if the lease had not been obtained and are included in the measurement of the ROU asset. Payments made to or on behalf of the Company, such as tenant improvement allowances, represent incentives that are considered reductions to the ROU asset and lease expense over the lease term. The Company made a policy election to not recognize ROU assets and lease liabilities that arise from leases with an initial term of twelve months or less in the Consolidated Statements of Financial Position. However, the Company recognized these lease payments in the Consolidated Statements of Income on a straight-line basis over the lease term and variable lease payments in the period in which the expense was incurred. The Company applies this accounting policy across all classes of underlying assets. A portion of the Company’s lease agreements include variable lease payments that are not recorded in the initial measurement of the lease liability and ROU asset balances. For real estate arrangements, base rental payments may be escalated according to annual changes in the CPI or other indices. The escalated rental payments based on the estimated CPI at the lease commencement date are included within minimum rental payments; however, changes in CPI are considered variable in nature and are recognized as variable lease costs in the period in which the obligation is incurred. Additionally, real estate lease agreements may include other variable payments related to operating expenses charged by the landlord based on actual expenditures. Information technology equipment agreements may include variable payments based on usage of the equipment. These expenses are also recognized as variable lease costs in the period in which the expense is incurred. The Company utilizes discount rates to determine the present value of the lease payments based on information available at the commencement date of the lease. As the rate implicit in each lease is not typically readily available, the Company uses an incremental borrowing rate based on factors such as the lease term and the economic environment where the lease exists to determine the appropriate present value of future lease payments. When determining the incremental borrowing rate, the Company considers the rate of interest it would pay on a secured borrowing in an amount equal to the lease payments for the underlying asset under similar terms. Operating leases are included in Operating lease ROU assets, Other current liabilities, and Non-current operating lease liabilities in the Consolidated Statements of Financial Position. Finance leases are included in Other non-current assets, Other current liabilities, and Other non-current liabilities in the Consolidated Statements of Financial Position. Principles of Consolidation The accompanying Consolidated Financial Statements include the accounts of Aon plc and those entities in which the Company has a controlling financial interest. To determine if Aon holds a controlling financial interest in an entity, the Company first evaluates if it is required to apply the variable interest model to the entity, otherwise, the entity is evaluated under the voting interest model. When Aon holds rights that give it the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance, combined with a variable interest that gives the right to receive potentially significant benefits or the obligation to absorb potentially significant losses, the Company has a controlling financial interest in that VIE. The Company does not hold a controlling financial interest over any VIEs that significantly impacts the VIE’s economic performance and the Company does not have rights to any significant benefits or obligations to absorb potentially significant losses. Thus, the Company does not consolidate any VIEs and Aon’s interest in VIEs as of December 31, 2022 was insignificant. Aon holds a controlling financial interest in entities that are not VIEs when it, directly or indirectly holds more than 50% of the voting rights and the noncontrolling interest holders do not hold substantive participating rights. New Accounting Pronouncements All issued, but not yet effective, guidance has been deemed not applicable or not significant to the Consolidated Financial Statements.
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Revenue from Contracts with Customers |
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Revenue from Contracts with Customers | Revenue from Contracts with Customers Disaggregation of Revenue The following table summarizes revenue from contracts with customers by principal service line (in millions):
Consolidated revenue from contracts with customers by geographic area, which is attributed on the basis of where the services are performed, is as follows (in millions):
Contract Costs Changes in the net carrying amount of costs to fulfill contracts with customers are as follows (in millions):
Changes in the net carrying amount of costs to obtain contracts with customers are as follows (in millions):
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Other Financial Data |
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Other Financial Data [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Financial Data | Other Financial Data Consolidated Statements of Income Information Other Income (Expense) The components of Other income (expense) are as follows (in millions):
(1) Refer to Note 11 “Employee Benefits” for further information. Consolidated Statements of Financial Position Information Allowance for Doubtful Accounts Changes in the net carrying amount of allowance for doubtful accounts are as follows (in millions):
Other Current Assets The components of Other current assets are as follows (in millions):
(1)Refer to Note 3 “Revenue from Contracts with Customers” for further information. Fixed Assets, net The components of Fixed assets, net are as follows (in millions):
Depreciation expense, which includes software amortization, was $151 million, $179 million, and $167 million for the years ended December 31, 2022, 2021, and 2020, respectively. Other Non-current Assets The components of Other non-current assets are as follows (in millions):
(1) Refer to Note 3 “Revenue from Contracts with Customers” for further information. (2) Refer to Note 8 “Lease Commitments” for further information. Other Current Liabilities The components of Other current liabilities are as follows (in millions):
(1)$653 million and $553 million was recognized in the Consolidated Statements of Income during the years ended December 31, 2022 and December 31, 2021, respectively. (2)Refer to Note 8 “Lease Commitments” for further information. Other Non-current Liabilities The components of Other non-current liabilities are as follows (in millions):
(1)Includes $129 million and $145 million for the non-current portion of the transition tax as of December 31, 2022 and December 31, 2021, respectively. Refer to Note 9 “Income Taxes” for further information on the transition tax. (2)Refer to Note 8 “Lease Commitments” for further information.
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Acquisitions and Dispositions of Businesses |
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions and Dispositions of Businesses | Acquisitions and Dispositions of Businesses Completed Acquisitions The Company completed five acquisitions during the year ended December 31, 2022 and two acquisitions during the year ended December 31, 2021. 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):
(1) Includes Cash and cash equivalents of $2 million and funds held on behalf of clients of an insignificant amount. Intangible assets acquired include technology as well as customer-related and contract-based assets. The intangible assets acquired as part of business acquisitions in 2022 had a weighted average useful economic life of 9 years. Acquisition related costs for completed acquisitions incurred and recognized within Other general expense for the year ended December 31, 2022 were insignificant. Total revenue for these acquisitions included in the Company’s Consolidated Statement of Income for the year ended December 31, 2022 was approximately $25 million. The results of operations of these acquisitions are included in the Consolidated Financial Statements as of the respective acquisition dates. The Company’s results of operations would not have been materially different if these acquisitions had been reported from the beginning of the period in which they were acquired. 2022 Acquisitions On November 1, 2022, the Company completed the acquisition of 100% of the share capital of E.R.N. Evaluacion de Riesgos Naturales y Antropogenicos, S.A. de C.V., a Mexico-based firm in risk assessment modeling. On September 12, 2022, the Company completed the purchase of certain assets of Praxiom Risk Management, a provider of professional risk management in the U.S. On August 1, 2022, the Company completed the purchase of certain assets of U.S. Advisors, Inc., a broker based in the U.S. On May 3, 2022, the Company completed the acquisition of 100% of the share capital of Karl Köllner group companies, a marine hull broker based in Germany. On March 1, 2022, the Company completed the acquisition of Tyche, an actuarial software platform based in the U.K. 2021 Acquisitions On December 22, 2021, the Company completed the transaction to acquire 100% share capital of For Welfare S.r.l, a company focused on bancassurance programs in Italy. On September 1, 2021, the Company completed the transaction to acquire 51% of Aon India Insurance Brokers Limited (formerly known as Anviti Insurance Brokers Private Limited). Prior to the acquisition date, the Company accounted for its 49% interest in Anviti as an equity-method investment. The acquisition-date fair value of the previous equity interest was $15 million and is included in the measurement of consideration transferred. There was no significant impact as a result of remeasuring the carrying value of the Company’s prior equity interest in Anviti held before the business combination. Completed Dispositions The Company completed three dispositions during the year ended December 31, 2022. The Company completed six dispositions during the year ended December 31, 2021 and one disposition during the year ended December 31, 2020. The pretax gains recognized related to dispositions were $54 million, $142 million, and $25 million for the years ended December 31, 2022, December 31, 2021 and December 31, 2020, respectively. Gains recognized as a result of a disposition are included in Other income in the Consolidated Statements of Income. The pretax losses recognized in the Consolidated Statements of Income related to dispositions were insignificant for the years ended December 31, 2022, December 31, 2021, and December 31, 2020, respectively.
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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 for the years ended December 31, 2022 and 2021, respectively, are as follows (in millions):
Other intangible assets by asset class are as follows (in millions):
Amortization expense and impairment charges from finite lived intangible assets were $113 million, $147 million, and $246 million for the years ended December 31, 2022, 2021, and 2020, respectively. The estimated future amortization for finite-lived intangible assets as of December 31, 2022 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)The 2.20% Senior Notes due November 2022 were repaid in full on November 1, 2022. (2)The 4.00% Senior Notes due November 2023 were reclassified as Short-term debt and current portion of long-term debt in the Consolidated Statement of Financial Position as of December 31, 2022. Notes In November 2022, Aon Global Limited’s $350 million 4.00% Senior Notes due November 2023 were classified as Short-term debt and current portion of long-term debt in the Consolidated Statement of Financial Position as the date of maturity is in less than one year as of December 31, 2022. In November 2022, Aon Corporation’s $500 million 2.20% Senior Notes matured and were repaid in full. In November 2021, the Company’s $500 million 2.20% Senior Notes due November 2022 were classified as Short-term debt and current portion of long-term debt in the Consolidated Statement of Financial Position as the date of maturity is in less than one year as of December 31, 2021. On September 12, 2022, Aon Corporation, a Delaware corporation, and Aon Global Holdings plc, a public limited company formed under the laws of England and Wales, both wholly owned subsidiaries of the Company, co-issued $500 million of 5.00% Senior Notes due September 2032. The Company intends to use the net proceeds from the offering for general corporate purposes. On February 28, 2022, Aon Corporation and Aon Global Holdings plc co-issued $600 million of 2.85% Senior Notes due May 2027 and $900 million of 3.90% Senior Notes due February 2052. The Company intends to use the net proceeds from the offering for general corporate purposes. On December 2, 2021, Aon Corporation and Aon Global Holdings plc co-issued $500 million aggregate principal amount of 2.60% Senior Notes set to mature on December 2, 2031. The Company intends to use the net proceeds of the offering for general corporate purposes. On August 23, 2021, Aon Corporation and Aon Global Holdings plc co-issued $400 million 2.05% Senior Notes due August 2031 and $600 million of 2.90% Senior Notes due August 2051. The Company intends to use the net proceeds of the offering for general corporate purposes. On January 13, 2021, Aon Global Limited issued an irrevocable notice of redemption to holders of its 2.80% Senior Notes for the redemption of all $400 million outstanding aggregate principal amount of the notes, which were set to mature in March 2021. The redemption date was on February 16, 2021 and resulted in an insignificant loss due to extinguishment. Each of the notes issued by Aon Corporation is fully and unconditionally guaranteed by Aon Global Limited, Aon plc, and Aon Global Holding plc. Each of the notes issued by Aon Global Limited is fully and unconditionally guaranteed by Aon plc, Aon Global Holdings plc, and Aon Corporation. Each of the notes co-issued by Aon Corporation and Aon Global Holdings plc is fully and unconditionally guaranteed by Aon plc and Aon Global Limited. All guarantees of Aon plc and Aon Global Limited of the Co-Issued Notes are joint and several as well as full and unconditional. Senior Notes rank pari passu in right of payment with all other present and future unsecured debt which is not expressed to be subordinate or junior in rank to any other unsecured debt of the Co-Issuers. Refer to “Guarantee of Registered Securities” within Part II Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations for further information regarding guarantees of outstanding debt securities. Each of the notes described 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, 2022. Repayments of total debt as of December 31, 2022 are as follows (in millions):
Revolving Credit Facilities As of December 31, 2022, Aon plc had two primary committed credit facilities outstanding: its $1.0 billion multi-currency U.S. credit facility expiring in September 2026 and its $750 million multi-currency U.S. credit facility expiring in October 2024. In aggregate, these two facilities provide approximately $1.8 billion in available credit. Each of these primary committed credit facilities includes customary representations, warranties, and covenants, including financial covenants that require Aon 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, 2022, Aon did not have borrowings under either of these primary committed credit facilities, and was in compliance with the financial covenants and all other covenants contained therein during the rolling year ended December 31, 2022. Commercial Paper Commercial paper may be issued in aggregate principal amounts of up to $1 billion under the U.S. Program and €625 million ($665 million at December 31, 2022 exchange rates) under the European Program, not to exceed the amount of the Company’s committed credit facilities, which was approximately $1.8 billion at December 31, 2022. The aggregate capacity of the Commercial Paper Program remains fully backed by the Company’s committed credit facilities. The U.S. Program was fully and unconditionally guaranteed by Aon plc, Aon Global Limited, and Aon Global Holdings plc and the European Program was fully and unconditionally guaranteed by Aon plc, Aon Global Limited, and Aon Corporation. Commercial paper outstanding, which is included in Short-term debt and current portion of long-term debt in the Company’s Consolidated Statements of Financial Position, is as follows (in millions):
The weighted average commercial paper outstanding and its related interest rates are as follows (in millions, except percentages):
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Lease Commitments |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease Commitments | Lease Commitments The classification of operating and finance lease asset and liability balances within the Consolidated Statements of Financial Position are as follows (in millions):
The components of lease costs are as follows (in millions):
(1) Short-term lease cost does not include expenses related to leases with a lease term of one month or less. Weighted average remaining lease term and discount rate related to operating and finance leases are as follows:
Other cash and non-cash related activities are as follows (in millions):
(1)The Company has recorded non-cash changes in Operating lease ROU assets and Non-current operating lease liabilities through Other assets and liabilities in Cash flows from operations within the Consolidated Statements of Cash Flows. Maturity analysis of operating and finance leases as of December 31, 2022 are as follows (in millions):
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Lease Commitments | Lease Commitments The classification of operating and finance lease asset and liability balances within the Consolidated Statements of Financial Position are as follows (in millions):
The components of lease costs are as follows (in millions):
(1) Short-term lease cost does not include expenses related to leases with a lease term of one month or less. Weighted average remaining lease term and discount rate related to operating and finance leases are as follows:
Other cash and non-cash related activities are as follows (in millions):
(1)The Company has recorded non-cash changes in Operating lease ROU assets and Non-current operating lease liabilities through Other assets and liabilities in Cash flows from operations within the Consolidated Statements of Cash Flows. Maturity analysis of operating and finance leases as of December 31, 2022 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 Ireland, 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 reconciliation of the income tax provisions based on the Irish statutory corporate tax rate of 25% to the provisions reflected in the Consolidated Financial Statements is as follows:
(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 25.0%, 25.0% and 25.0% at December 31, 2022, 2021, and 2020, 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 and the tax holiday in Singapore. (2)In July 2020, final U.S. tax regulations were issued regarding the GILTI high tax election, allowing taxpayers to exclude from GILTI the income of a Controlled Foreign Corporation that incurs a foreign tax rate more than 90% of the top U.S. corporate tax rate. A GILTI high tax election may be made on an annual basis, and taxpayers may choose to apply the election to taxable years beginning after December 31, 2017. The Company expects to make the GILTI high-tax election for 2022 and therefore recorded the impact of making the election. (3)Excess tax benefits and deficiencies from share-based payment transactions are recognized as income tax expense or benefit in the Company’s Consolidated Statements of Income. The Company has elected to account for GILTI in the period in which it is incurred, and therefore has not provided deferred tax impacts of GILTI in its Consolidated Financial Statements. The components of the Company’s deferred tax assets and liabilities are as follows (in millions):
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):
In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized and adjusts the valuation allowance accordingly. Considerations with respect to the realizability of deferred tax assets include the period of expiration of the deferred tax asset, historical earnings and projected future taxable income by jurisdiction as well as tax liabilities for the tax jurisdiction to which the tax asset relates. Significant management judgment is required in determining the assumptions and estimates related to the amount and timing of future taxable income. Valuation allowances have been established primarily with regard to the tax benefits of certain tax credits and net operating losses, capital losses, and interest carryforwards. Valuation allowances increased by $45 million as of December 31, 2022, when compared to December 31, 2021. The change is primarily attributable to an increase in valuation allowances related to net operating losses and foreign tax credits. The Company generally intends to limit distributions from foreign subsidiaries in excess of U.S. tax earnings and profits (except where distributions would be limited by available cash) and to limit repatriations from certain other jurisdictions that would otherwise generate a U.S. tax liability. As of December 31, 2022, the Company has accrued $38 million for local country income taxes, withholding taxes and state income taxes on those undistributed earnings that are not indefinitely reinvested. The Company has not provided for deferred taxes on outside basis differences in our investments in our foreign subsidiaries that are unrelated to these accumulated undistributed earnings, as these outside basis differences are indefinitely reinvested. A determination of the unrecognized deferred taxes related to these other components of our outside basis differences is not practicable. The Company had the following carryforwards (in millions):
The U.K. operating losses and capital losses have an indefinite carryforward period. The federal operating loss carryforwards generated through December 31, 2017 expire at various dates between 2034 and 2036 while federal operating loss carryforwards generated after this date have indefinite carryforward periods. State net operating losses as of December 31, 2022 have various carryforward periods and will begin to expire in 2023. Federal and state capital losses can be carried forward until 2023. Federal and state interest carryforwards have indefinite carryforward periods. Foreign tax credits can be carried forward for ten years and will begin to expire in 2028. Operating, capital losses, and other carryforwards in other non-U.S. jurisdictions have various carryforward periods and will begin to expire in 2023. The interest carryforwards in other non-U.S. jurisdictions have an indefinite carryforward period. 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. The Company has been granted a new incentive for the period October 1, 2022 to September 30, 2032. The new incentive provides for a reduced withholding tax rate and a reduced tax rate on certain income derived from services in Singapore, as long as certain conditions are met. The benefit realized was approximately $115 million, $104 million, and $97 million during the years ended December 31, 2022, 2021, and 2020, respectively. The impact of this tax holiday on diluted earnings per share was $0.54, $0.46, and $0.42 during the years ended December 31, 2022, 2021, and 2020, 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, 2022, 2021, and 2020, includes $535 million, $295 million, and $270 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 next 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 $40 million, $22 million, and $21 million in 2022, 2021, and 2020, respectively. The Company recorded a liability for interest and penalties of $181 million, $142 million, and $120 million as of December 31, 2022, 2021, and 2020, 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 2014. The Company has concluded income tax examinations in its primary non-U.S. jurisdictions through 2008.
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Shareholders' Equity (Deficit) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders' Equity (Deficit) | Shareholders’ Equity (Deficit) Distributable Profits The Company is required under Irish law to have available “distributable profits” to make share repurchases or pay dividends to shareholders. Distributable profits are created through the earnings of the Irish parent company and, among other methods, through intercompany dividends or a reduction in share capital approved by the High Court of Ireland. Distributable profits are not linked to a U.S. GAAP reported amount (e.g., accumulated deficit). As of December 31, 2022 and 2021, the Company had distributable profits in excess of $29.0 billion and $32.7 billion, respectively. We believe that we have the ability to create sufficient distributable profits for the foreseeable future. Ordinary Shares Aon has a share repurchase program authorized by the Company’s Board of Directors. 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, and 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):
At December 31, 2022, the remaining authorized amount for share repurchases under the Repurchase Program was approximately $6.0 billion. Under the Repurchase Program, the Company has repurchased a total of 160.7 million shares for an aggregate cost of approximately $21.5 billion. Weighted Average Ordinary Shares Weighted average ordinary shares outstanding are as follows (in millions):
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 0.8 million and 0.3 million shares excluded from the calculation in 2022 and 2021, respectively, and no shares excluded from the calculation in 2020. Accumulated Other Comprehensive Loss Changes in Accumulated other comprehensive loss by component, net of related tax, are as follows (in millions):
(1)Reclassifications from this category included in Accumulated other comprehensive loss are recorded in Total revenue, Interest expense, and Compensation and benefits in the 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 Consolidated Statements of Income.
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Employee Benefits |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefits | Employee Benefits Defined Contribution Savings Plans Aon maintains defined contribution savings plans for the benefit of its employees. The expense recognized for these plans is included in Compensation and benefits in the Consolidated Statements of Income. The expense for the significant plans in the U.S., U.K., Netherlands, and Canada is as follows (in millions):
Pension and Other Postretirement Benefits The Company sponsors defined benefit pension and postretirement health and welfare plans that provide retirement, medical, and life insurance benefits. The postretirement health care 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 Canada 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, 2022 and 2021, and a statement of the funded status as of December 31, 2022 and 2021, for Aon’s significant U.K., U.S., and other major pension plans, which are located in the Netherlands and Canada. These plans represent approximately 88% of the Company’s projected benefit obligations.
The benefit obligation decreased primarily as a result of increases in the discount rates in 2022 as compared to 2021. The value of plan assets decreased as a result of negative asset returns, predominately in the U.K, and overall weaker exchange rates versus the U.S. Dollar. The U.K. pension assets are concentrated in fixed income and annuities which were disproportionately negatively impacted by the rising interest rate environment. The U.K. hedging strategy continues to perform as expected and the related pension plans remain over-funded. Net actuarial gains decreased the benefit obligation in 2021 primarily due to the increase in the discount rates. In November 2022, to further its pension de-risking strategy the Company purchased an annuity for portions of its U.S. pension plans that will settle certain obligations. The transaction settled $280 million of benefit obligations using $280 million of assets. In November 2020, the Company entered into an insurance contract that covers a portion of the assets within a select U.K. pension scheme. The transaction resulted in a decrease in Prepaid pension assets and Accumulated other comprehensive income of $94 million. Amounts recognized in the Consolidated Statements of Financial Position consist of (in millions):
(1)Included in Prepaid pension. (2)Included in Other current liabilities. (3)Included in Pension, other postretirement, and postemployment liabilities. Amounts recognized in Accumulated other comprehensive loss (income) that have not yet been recognized as components of net periodic benefit cost at December 31, 2022 and 2021 consist of (in millions):
In 2022, U.S. plans with a PBO and an ABO in excess of the fair value of plan assets had a PBO of $2.2 billion, an ABO of $2.2 billion, and plan assets with a fair value of $1.5 billion. U.K. plans with a PBO and an ABO in excess of the fair value of plan assets had a PBO of $114 million, an ABO of $114 million and, plan assets with a fair value of $93 million. Other plans with a PBO in excess of the fair value of plan assets had a PBO of $1.1 billion and plan assets with a fair value of $1.0 billion, and other plans with an ABO in excess of the fair value of plan assets had an ABO of $220 million and plan assets with a fair value of $166 million. In 2021, 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 with a fair value of $2.4 billion. U.K. plans with a PBO and an ABO in excess of the fair value of plan assets had a PBO of $17 million, an ABO of $17 million and no plan assets. Other plans with a PBO in excess of the fair value of plan assets had a PBO of $1.5 billion and plan assets with a fair value of $1.4 billion, and other plans with an ABO in excess of the fair value of plan assets had an ABO of $409 million and plan assets with a fair value of $326 million. Service cost is reported in Compensation and benefits and all other components are reported in Other income (expense) as follows (in millions):
The Company uses a full-yield curve approach in the estimation of the service and interest cost components of net periodic pension and postretirement benefit cost for its major pension and other postretirement benefit plans. This estimation was obtained 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 November 2022, to further its pension de-risking strategy the Company purchased an annuity for portions of its U.S. pension plans that will settle certain obligations. This triggered settlement accounting which required immediate recognition of a portion of the accumulated losses associated with the plan. Consequently, the Company recognized a non-cash settlement charge of approximately $170 million in 2022. Transfer payments from certain U.K. pension plans exceeded the plan’s service and interest cost in 2021 and 2020. This triggered settlement accounting which required immediate recognition of a portion of the accumulated losses associated with the plan. Consequently, the Company recognized a non-cash settlement charge for approximately £3 million in 2021 ($5 million using December 31, 2021 exchange rates), and approximately £2 million in 2020 ($2 million using December 31, 2020 exchange rates). The weighted-average assumptions used to determine benefit obligations are as follows:
(1)U.S. pension plans are frozen and therefore not impacted by compensation increases or price inflation. The weighted-average assumptions used to determine the net periodic benefit cost are as follows:
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 of 5.28% on U.S. plan assets 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, as well as other financial instruments to minimize downside risk. No plan assets are expected to be returned to the Company during 2023. 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 14 “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, 2022 and December 31, 2021, by asset category, are as follows (in millions):
(1)Consists of cash and institutional short-term investment funds. (2)Certain investments 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 property funds and trusts holding direct real estate investments. (4)Consists of limited partnerships, private equity, and hedge funds. The fair values of the Company’s major U.K. pension plan assets at December 31, 2022 and December 31, 2021, by asset category, are as follows (in millions):
(1)Consists of cash and institutional short-term investment funds. (2)Certain investments 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 equity securities and equity derivatives, including repurchase agreements. (4)Consists of property funds and trusts holding direct real estate investments. (5)Consists of multi-strategy limited partnerships, private equity, hedge funds, and collective investment schemes with a diversified portfolio of cash, equities, equity related securities, derivatives, and/or fixed income securities. 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, 2022 and December 31, 2021 (in millions):
The fair values of the Company’s other major pension plan assets at December 31, 2022 and December 31, 2021, by asset category, are as follows (in millions):
(1)Consists of cash and institutional short-term investment funds. (2)Certain investments 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 limited partnerships, private equity, and hedge funds. (4)Consists of property funds and trusts holding direct real estate investments. Investment Policy and Strategy The U.S. investment policy, as established by the RPGIC, seeks reasonable asset growth at prudent risk levels within weighted average target allocations. At December 31, 2022, the weighted average targeted allocation for the U.S. plans was 30% for equity investments, 54% for fixed income investments, and 16% for 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, 2022, the weighted average targeted allocation for the U.K. and non-U.S. plans was 6% for equity investments, 86% for fixed income investments, and 8% for other investments. Cash Flows Contributions Based on current assumptions, in 2023, the Company expects to contribute approximately $4 million, $43 million, and $14 million to its significant U.K., U.S., and other major pension plans, respectively. Estimated Future Benefit Payments Estimated future benefit payments for plans, not including voluntary one-time lump sum payments, are as follows at December 31, 2022 (in millions):
U.S. and Canadian Other Postretirement Benefits The following table provides an overview of the accumulated PBO, fair value of plan assets, funded status and net amount recognized as of December 31, 2022 and 2021 for the Company’s other significant postretirement benefit plans located in the U.S. and Canada (in millions):
Other information related to the Company’s other postretirement benefit plans are as follows:
Based on current assumptions, the Company expects: •The amount in Accumulated other comprehensive income expected to be recognized as a component of net periodic benefit cost during 2023 is $0.8 million net gain and $0.2 million of prior-service credit. •To contribute $5 million to fund significant other postretirement benefit plans during 2023. •Estimated future benefit payments will be approximately $5 million each year for 2023 through 2027, and $27 million in aggregate for 2028-2032.
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Share-Based Compensation Plans |
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Share-Based Payment Arrangement [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 and five years. The fair value of RSUs is based upon the market value of the Company’s class A 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. The following table summarizes the status of the Company’s RSUs (shares in thousands, except fair value):
(1)Represents per share weighted average fair value of award at date of grant. The weighted-average grant date fair value of the Company's RSU awards granted during the years ended December 31, 2022, December 31, 2021, and December 31, 2020 was $279, $253, and $185, respectively. The fair value of RSUs that vested during 2022, 2021, and 2020 was $216 million, $189 million, and $190 million, respectively. Unamortized deferred compensation expense amounted to $466 million as of December 31, 2022, with a remaining weighted average amortization period of approximately 2.0 years. Performance Share Awards The vesting of PSAs is contingent upon meeting a cumulative level of adjusted diluted earnings per share related performance over a three-year period. The actual issuance 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 the Company’s class A ordinary shares at the date of grant, reduced by the present value of estimated dividends foregone during the vesting period. 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 in the Consolidated Statements of Income, if necessary. Dividend equivalents are not paid on PSAs. The following table summarizes the status of the Company's PSAs at 100% of the targeted amount (shares in thousands, except fair value):
(1)Represents per share weighted average fair value of award at date of grant. The per share weighted-average grant date fair value of the Company's PSA awards granted during the years ended December 31, 2022, December 31, 2021, and December 31, 2020 was $311, $225, and $163, respectively. The payout of shares in 2022 with respect to the PSA awards granted in 2019 based on performance for the three-year performance period ended 2021 was, in aggregate, 888 thousand shares. The fair value of PSAs that vested during 2022, 2021, and 2020 was $145 million, $112 million, and $121 million, respectively. Unamortized compensation expense, based on current performance levels, amounted to $126 million as of December 31, 2022, with a remaining weighted average amortization period of approximately 1.3 years.
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Derivatives and Hedging |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives and Hedging | Derivatives and HedgingThe 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 or other transactions denominated in a currency that differs from 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 90-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 (expense) in the Consolidated Statements of Income. The notional and fair values of derivative instruments are as follows (in millions):
(1)Included within Other current assets ($3 million in 2022 and $21 million in 2021) or Other non-current assets ($9 million in 2022 and $8 million in 2021). (2)Included within Other current liabilities ($2 million in 2022) or Other non-current liabilities ($1 million in 2022). (3)These contracts typically are for 90-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. The amounts of derivative gains (losses) recognized in the Consolidated Financial Statements are as follows (in millions):
The amounts of derivative gains (losses) reclassified from Accumulated other comprehensive loss to the Consolidated Statements of Income are as follows (in millions):
The Company estimates that approximately $10 million of pretax loss currently included within Accumulated other comprehensive loss will be reclassified into earnings in the next twelve months. The Company recorded a gain of $11 million in 2022, a loss of $24 million in 2021, and a gain of $1 million in 2020 in Other income (expense) for foreign exchange derivatives not designated or qualifying as hedges.
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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: •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. The following methods and assumptions are used to estimate the fair values of the Company’s financial instruments, including pension assets (refer to Note 11 “Employee Benefits”): Money market funds consist of institutional prime, treasury, and government money market funds. The Company reviews treasury and government money market funds to obtain reasonable assurance that the fund net asset value is $1 per share and reviews the floating net asset value of institutional prime money market funds for reasonableness. 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 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, 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 DCF 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 internal Company 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, 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. The underlying securities typically trade on a national securities exchange or may be valued by the fund managers using applicable models, inputs, and assumptions. 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 volatility. 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 DCF model utilizing assumptions such as discount rate, mortality, and inflation. Real estate and REITs consist of publicly traded 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 issuance costs, discount or premium. Fair value is based on quoted market prices or estimates using DCF 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, 2022 and December 31, 2021 (in millions):
(1)Included within Fiduciary assets or Short-term investments in the Consolidated Statements of Financial Position, depending on their nature and initial maturity. (2)Refer to Note 13 “Derivatives and Hedging” for additional information regarding the Company’s derivatives and hedging activity. There were no transfers of assets or liabilities between fair value hierarchy levels during 2022 or 2021. 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 2022, 2021, or 2020. The fair value of debt is classified as Level 2 of the fair value hierarchy. The following table provides the carrying value and fair value for the Company’s term debt (in millions):
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Claims, Lawsuits and Other Contingencies |
12 Months Ended |
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Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Claims, Lawsuits, and Other Contingencies | Claims, Lawsuits, and Other 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 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 expense 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 is not subject to current matters in connection with which the Company believes (1) material loss (including interest and costs) is probable, (2) material loss (including interest and costs) is reasonably possible (that is, more than remote but not probable), or (3) there exists the reasonable possibility of material loss (including interest and costs) greater than the accrued amount. The Company includes in the current matters described below certain matters in which it believes a material loss is remote but in which the claimed amounts are significant. Although management at present believes that the ultimate outcome of such matters, 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 Aon Hewitt Investment Consulting, Inc, now known as Aon Investments USA, Inc. (“Aon Investments”), Lowe’s Companies, Inc. and the Administrative Committee of Lowe’s Companies, Inc. (collectively “Lowe’s”) were sued on April 27, 2018 in the U.S. District Court for the Western District of North Carolina (the “Court”) in a class action lawsuit brought on behalf of participants in the Lowe’s 401(k) Plan (the “Plan”). Aon Investments provided investment consulting services to Lowe’s under ERISA. The plaintiffs contend that in 2015 Lowe’s imprudently placed the Hewitt Growth Fund in the Plan’s lineup of investments, the Hewitt Growth Fund underperformed its benchmarks, and that Aon had a conflict of interest in recommending the proprietary fund for the Plan. The plaintiffs allege the Plan suffered over $200 million in investment losses when compared to the eight funds it replaced. The plaintiffs allege that Aon Investments breached its duties of loyalty and prudence pursuant to ERISA. The matter was tried to the Court the last week of June 2021, and the Court entered judgment in favor of Aon on all claims on October 12, 2021. Plaintiffs have filed an appeal with the United States Court of Appeals for the Fourth Circuit, and oral argument took place on December 7, 2022. Aon believes it has meritorious defenses and intends to vigorously defend itself against these claims and appeal. Aon faces legal action arising out of a fatal plane crash in November 2016. Aon U.K. Limited placed an aviation civil liability reinsurance policy for the Bolivian insurer of the airline. After the crash, the insurer determined that there was no coverage under the airline’s insurance policy due to the airline’s breach of various policy conditions. In November 2018, the owner of the aircraft filed a claim in Bolivia against Aon, the airline, the insurer and the insurance broker. The claim is for $16 million plus any liability the owner has to third parties. In November 2019, a federal prosecutor in Brazil filed a public civil action naming three Aon entities as defendants, along with the airline, the insurer, and the lead reinsurer. That claim seeks pecuniary damages for families affected by the crash in the sum of $300 million; or, in the alternative, $50 million; or, in the alternative, $25 million; plus “moral damages” of an equivalent sum. Separately, in March 2020, the Brazilian Federal Senate invited Aon to give evidence to a Parliamentary Commission of Inquiry in an investigation into the accident. Aon cooperated with that inquiry. In August 2020, 43 individuals (surviving passengers and estates of the deceased) filed a motion in the Circuit Court of the 11th Judicial Circuit in and for Miami-Dade County, Florida, seeking permission to commence proceedings against Aon (and the insurer and reinsurers) for claims totaling $844 million. Finally, in April 2021, representatives of 16 passengers issued a claim against Aon in the High Court in England seeking damages under the Fatal Accidents Act 1976 in the sum of £29 million ($35 million at December 31, 2022 exchange rates). In December 2022, the High Court in England granted an anti-suit injunction, restricting the 43 individuals who previously filed a motion in the Circuit Court of the 11th Judicial Circuit in and for Miami-Dade County, Florida, from continuing litigation in the Circuit Court of the 11th Judicial Circuit against Aon. Aon believes that it has meritorious defenses and intends to vigorously defend itself against the remaining claims. Settled/Closed Matters On October 3, 2017, CCC invoked arbitration to pursue a claim that it asserts against Aon New Zealand. Aon provided insurance broking services to CCC in relation to CCC’s 2010-2011 material damage and business interruption program. In December 2015, CCC settled its property and business interruption claim for its losses arising from the 2010-2011 Canterbury earthquakes against the underwriter of its material damage and business interruption program and the reinsurers of that underwriter. CCC contends that acts and omissions by Aon caused CCC to recover less in that settlement than it otherwise would have. CCC claimed damages of approximately NZD 320 million ($202 million at December 31, 2022 exchange rates) plus interest and costs. In December 2022, the case was settled with no admission of liability on the part of Aon. Guarantees and Indemnifications 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 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. Guarantee of Registered Securities In connection with the Ireland Reorganization, on April 1, 2020, Aon plc and Aon Global Holdings plc entered into various agreements pursuant to which they agreed to guarantee the obligations of Aon Corporation arising under issued and outstanding debt securities, which were previously guaranteed solely by Aon Global Limited and the obligations of Aon Global Limited arising under issued and outstanding debt securities, which were previously guaranteed solely by Aon Corporation. Those agreements include: (1) Second Amended and Restated Indenture, dated April 1, 2020, among Aon Corporation, Aon Global Limited, Aon plc, and Aon Global Holdings plc and The Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”) (amending and restating the Amended and Restated Indenture, dated April 2, 2012, among Aon Corporation, Aon Global Limited and the Trustee); (2) Amended and Restated Indenture, dated April 1, 2020, among Aon Corporation, Aon Global Limited, Aon plc, Aon Global Holdings plc and the Trustee (amending and restating the Indenture, dated December 12, 2012, among Aon Corporation, Aon Global Limited plc and the Trustee); (3) Second Amended and Restated Indenture, dated April 1, 2020, among Aon Corporation, Aon Global Limited, Aon plc, Aon Global Holdings plc and the Trustee (amending and restating the Amended and Restated Indenture, dated May 20, 2015, among Aon Corporation, Aon Global Limited and the Trustee); (4) Amended and Restated Indenture, dated April 1, 2020, among Aon Corporation, Aon Global Limited, Aon plc, Aon Global Holdings plc and the Trustee (amending and restating the Indenture, dated November 13, 2015, among Aon Corporation, Aon Global Limited and the Trustee); and (5) Amended and Restated Indenture, dated April 1, 2020, among Aon Corporation, Aon Global Limited, Aon plc, Aon Global Holdings plc and the Trustee (amending and restating the Indenture, dated December 3, 2018, among Aon Corporation, Aon Global Limited and the Trustee). 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 LOCs. The Company had total LOCs outstanding of approximately $74 million at December 31, 2022, and $75 million at December 31, 2021. These LOCs 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 $173 million at December 31, 2022 compared to $153 million at December 31, 2021.
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Segment Information |
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Segment Information | Segment Information The Company operates as one segment that includes all of Aon’s operations, which as a global professional services firm provides a broad range of risk, health, and wealth solutions through four solution lines which make up its principal products and services. The CODM assesses the performance of the Company and allocates resources based on one segment: Aon United. The Company’s reportable operating segment has been determined using a management approach, which is consistent with the basis and manner in which the CODM uses financial information for the purposes of allocating resources and evaluating performance. The CODM assesses performance and allocates resources based on total Aon results against its key four metrics, expense discipline, and collaborative behaviors that maximize value for Aon and its shareholders, regardless of which solution line it benefits. As Aon operates as one segment, segment profit or loss is consistent with consolidated reporting as disclosed in the Consolidated Statements of Income. Refer to Note 3 “Revenue from Contracts with Customers” for further information on revenue by principal service line. Consolidated long-lived assets, net by geographic area are as follows (in millions):
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Summary of Significant Accounting Principles and Practices (Policies) |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Accounting | Basis of PresentationThe accompanying Consolidated Financial Statements and Notes thereto have been prepared in accordance with U.S. GAAP. The Consolidated Financial Statements include the accounts of Aon plc and all of its controlled subsidiaries (“Aon” or the “Company”). Intercompany accounts and transactions have been eliminated. The Consolidated Financial Statements include, in the opinion of management, all adjustments (consisting of normal recurring adjustments and reclassifications) necessary to present fairly the Company’s consolidated financial position, results of operations, and cash flows for all periods presented. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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, the disclosures of contingent assets and liabilities at the date of the Consolidated 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 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 Consolidated Financial Statements in future periods.
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Revenue Recognition | Revenue Recognition The Company generates revenues primarily through commissions, compensation from insurance and reinsurance companies for services provided to them, and fees from customers. Commissions and fees for brokerage services vary depending upon several factors, which may include the amount of premium, the type of insurance or reinsurance coverage provided, the particular services provided to a client, insurer, or reinsurer, and the capacity in which the Company acts. Compensation from insurance and reinsurance companies includes: (1) fees for consulting and analytics services and (2) fees and commissions for administrative and other services provided to or on behalf of insurers. In Aon’s capacity as an insurance and reinsurance broker, the service promised to the customer is placement of an effective insurance or reinsurance policy, respectively. The customer obtains control over the services promised by the Company at the completion of the insurance or reinsurance policy placement process once coverage is effective. Judgment is not typically required when assessing whether the coverage is effective. Fees from clients for advice and consulting services are dependent on the extent and value of the services provided. Payment terms for the Company’s principal service lines are discussed below; the Company believes these terms are consistent with current industry practices. Significant financing components are typically not present in Aon’s arrangements. The Company recognizes revenue when control of the promised services is transferred to the customer in the amount that best reflects the consideration to which the Company expects to be entitled in exchange for those services. For arrangements where control is transferred over time, an input or output method is applied that represents a faithful depiction of the progress towards completion of the performance obligation. For arrangements that include variable consideration, the Company assesses whether any amounts should be constrained. For arrangements that include multiple performance obligations, the Company allocates consideration based on their relative fair values. Costs incurred by the Company in obtaining a contract are capitalized and amortized on a systematic basis that is consistent with the transfer of control of the services to which the asset relates, considering anticipated renewals when applicable. Certain contract related costs, including pre-placement brokerage costs, are capitalized as a cost to fulfill and are amortized on a systematic basis consistent with the transfer of control of the services to which the asset relates, which is generally less than one year. The Company has elected to apply practical expedients to not disclose the revenue related to unsatisfied performance obligations if (1) the contract has an original duration of 1 year or less, (2) the Company has recognized revenue for the amount in which it has the right to bill, and (3) the variable consideration is allocated entirely to an unsatisfied performance obligation which is recognized as a series of distinct goods or services that form a single performance obligation. Disaggregation of Revenue The following is a description of principal service lines from which the Company generates its revenue: Commercial Risk Solutions includes retail brokerage, specialty solutions, global risk consulting and captives management, and Affinity programs. Revenue primarily includes insurance commissions and fees for services rendered. Revenue is predominantly recognized at a point in time upon the effective date of the underlying policy (or policies), or for a limited number of arrangements, over the term of the arrangement using output measures to depict the transfer of control of the services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those services. For arrangements recognized over time, various output measures, including units delivered and time elapsed, are utilized to provide a faithful depiction of the progress towards completion of the performance obligation. Revenue is recorded net of allowances for estimated policy cancellations, which are determined based on an evaluation of historical and current cancellation data. Reimbursements received for out-of-pocket expenses are generally recorded as a component of revenue. Commissions and fees for brokerage services may be invoiced near the effective date of the underlying policy or over the term of the arrangement in installments during the policy period. Reinsurance Solutions includes treaty reinsurance, facultative reinsurance, Strategy and Technology Group, and capital markets. Revenue primarily includes reinsurance commissions and fees for services rendered. Revenue is predominantly recognized at a point in time upon the effective date of the underlying policy (or policies), or for a limited number of arrangements, over the term of the arrangement using output measures to depict the transfer of control of the services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those services. For arrangements recognized over time, various output measures, including units delivered and time elapsed, are utilized to provide a faithful depiction of the progress towards completion of the performance obligation. Commissions and fees for brokerage services may be invoiced at the inception of the reinsurance period for certain reinsurance brokerage, or more commonly, over the term of the arrangement in installments based on deposit or minimum premiums for most treaty reinsurance arrangements. Health Solutions includes consulting and brokerage, Human Capital, and Consumer Benefits Solutions. Revenue primarily includes insurance commissions and fees for services rendered. For brokerage commissions, revenue is predominantly recognized at a point in time upon the effective date of the underlying policy (or policies), or for a limited number of arrangements, over the term of the arrangement to depict the transfer of control of the services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those services using input or output measures, including units delivered or time elapsed, to provide a faithful depiction of the progress towards completion of the performance obligation. Revenue from health care exchange arrangements is typically recognized upon successful enrollment of participants. Commissions and fees for brokerage services may be invoiced at the effective date of the underlying policy or over the term of the arrangement in installments during the policy period. Payment terms for other services vary but are typically over the contract term in installments. Wealth Solutions includes retirement consulting and pension administration, as well as investments. Revenue recognized for these arrangements is predominantly recognized over the term of the arrangement using input or output measures to depict the transfer of control of the services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those services, or for certain arrangements, at a point in time upon completion of the services. For consulting arrangements recognized over time, revenue will be recognized based on a measure of progress that depicts the transfer of control of the services to the customer, utilizing an appropriate input or output measure to provide a reasonable assessment of the progress towards completion of the performance obligation including units delivered or time elapsed. Fees paid by customers for consulting services are typically charged on an hourly, project or fixed-fee basis, and revenue for these arrangements is typically recognized based on time incurred, days elapsed, or reports delivered. Revenue from time-and-materials or cost-plus arrangements are recognized as services are performed using input or output measures to provide a reasonable assessment of the progress towards completion of the performance obligation including hours worked, and revenue for these arrangements is typically recognized based on time and materials incurred. Revenue generated from the Company’s delegated investment business is generally earned as an agreed percentage based on AUM and, to a lesser extent, based on performance fees. Reimbursements received for out-of-pocket expenses are generally recorded as a component of revenue. Payment terms vary but are typically over the contract term in installments.
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Share-based Compensation Expense | Share-based Compensation Expense Share-based payments to employees, including grants of RSUs and PSAs, are measured based on grant date fair value. For purposes of measuring share-based compensation expense, the Company considered whether an adjustment to the observable market price is necessary to reflect material nonpublic information that is known to us at the time the award is granted. No adjustments were necessary for the years ended December 31, 2022, 2021, or 2020. 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 Postretirement Benefits The Company records net periodic cost relating to its pension and other postretirement 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 as reflected in Other income (expense) within the Consolidated Statements of Income. 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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Earnings per Share | Earnings per Share Basic earnings 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 earnings 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, 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 earnings 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 generally consist of money market funds. The estimated fair value of Cash and cash equivalents and Short-term investments approximates their carrying values.
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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 Consolidated Statements of Financial Position.
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Allowance for Doubtful Accounts | Allowance for Doubtful AccountsThe Company’s estimate for allowance for credit losses with respect to receivables is based on a combination of factors, including evaluation of forward-looking information, historical write-offs, aging of balances, and other qualitative and quantitative analyses. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed Assets | Fixed Assets Fixed assets are stated at cost, less accumulated depreciation. Included in this category are certain capitalized costs incurred during the application development stage related to directly obtaining, developing, or enhancing internal use software. 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 purchase price over the fair value of the net assets acquired in the acquisition of a business. Goodwill is allocated to applicable reporting units. Upon disposition of a business entity, goodwill is allocated to the disposed entity based on the relative 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 may initially perform a qualitative analysis to determine if it is more likely than not that the goodwill balance is impaired. If a qualitative assessment is not performed or if a determination is made that it is not more likely than not that the value of the reporting unit exceeds its carrying amount, then the Company will perform a quantitative analysis. If the fair value of a reporting unit is determined to be greater than the carrying value of the reporting unit, goodwill is deemed not to be impaired and no further testing is necessary. If the fair value of a reporting unit is less than the carrying value, a goodwill impairment loss is recognized for the amount that the carrying amount of a reporting unit, including goodwill, exceeds its fair value limited to the total amount of the goodwill allocated to the reporting unit. Any resulting difference will be a charge to Amortization and impairment of intangible assets 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. We classify our intangible assets acquired as either customer-related and contract based, technology, tradenames, or other intangibles. Amortization basis and estimated useful lives by intangible asset type are generally as follows:
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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 counterparties 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: (1) a hedge of the change in fair value of a recognized asset or liability or firm commitment (“fair value hedge”), (2) a hedge of the variability in cash flows from a recognized variable-rate asset or liability or forecasted transaction (“cash flow hedge”), and (3) 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, and the method for assessing the effectiveness of the hedge. 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 quarterly or more frequently if facts and circumstances require. For a derivative designated as a fair value hedging instrument, 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 change in fair value of a hedging instrument is recognized in Accumulated Other Comprehensive Income and subsequently reclassified to earnings in the same period the hedged item impacts earnings. For a net investment hedge, the change in fair value of the hedging instrument is recognized in Accumulate Other Comprehensive Income as part of the cumulative translation adjustment. 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 in the period of change. 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-U.S. 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. Further, gains and losses from the remeasurement of monetary assets and liabilities that are denominated in a non-functional currency of that entity are included in Other income (expense) 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. 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. The Company releases income tax effects from Accumulated other comprehensive loss using the portfolio approach.
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Leases | Leases The Company leases office facilities, equipment, and automobiles under operating and finance leases. The Company’s lease obligations are primarily for the use of office facilities. The Company evaluates if a leasing arrangement exists upon inception of a contract. A contract contains a lease if the contract conveys the right to control the use of identified tangible assets for a period of time in exchange for consideration. Identified property, plant, or equipment may include a physically distinct portion of a larger asset, or a portion of an asset that represents substantially all of the capacity of the asset but is not physically distinct. The Company assesses whether a contract implicitly contains the right to control the use of a tangible asset that is not already owned. In addition, the Company subleases certain real estate properties to third parties, which are classified as operating leases. The Company’s leases expire at various dates and may contain renewal, expansion or termination options. The exercise of lease renewal and expansion options are typically at the Company’s sole discretion and are only included in the determination of the lease term if the Company is reasonably certain to exercise the option. In addition, the Company’s lease agreements typically do not contain any material residual value guarantees or restrictive covenants. ROU assets and lease liabilities are based on the present value of the minimum lease payments over the lease term. The Company has elected the practical expedient related to lease and non-lease components, as an accounting policy election for all asset classes, which allows a lessee to not separate non-lease components from lease components and instead account for consideration received in a contract as a single lease component. The Company’s lease agreements may include initial direct costs and lease incentives. Initial direct costs are incremental costs of a lease that would not have been incurred if the lease had not been obtained and are included in the measurement of the ROU asset. Payments made to or on behalf of the Company, such as tenant improvement allowances, represent incentives that are considered reductions to the ROU asset and lease expense over the lease term. The Company made a policy election to not recognize ROU assets and lease liabilities that arise from leases with an initial term of twelve months or less in the Consolidated Statements of Financial Position. However, the Company recognized these lease payments in the Consolidated Statements of Income on a straight-line basis over the lease term and variable lease payments in the period in which the expense was incurred. The Company applies this accounting policy across all classes of underlying assets. A portion of the Company’s lease agreements include variable lease payments that are not recorded in the initial measurement of the lease liability and ROU asset balances. For real estate arrangements, base rental payments may be escalated according to annual changes in the CPI or other indices. The escalated rental payments based on the estimated CPI at the lease commencement date are included within minimum rental payments; however, changes in CPI are considered variable in nature and are recognized as variable lease costs in the period in which the obligation is incurred. Additionally, real estate lease agreements may include other variable payments related to operating expenses charged by the landlord based on actual expenditures. Information technology equipment agreements may include variable payments based on usage of the equipment. These expenses are also recognized as variable lease costs in the period in which the expense is incurred. The Company utilizes discount rates to determine the present value of the lease payments based on information available at the commencement date of the lease. As the rate implicit in each lease is not typically readily available, the Company uses an incremental borrowing rate based on factors such as the lease term and the economic environment where the lease exists to determine the appropriate present value of future lease payments. When determining the incremental borrowing rate, the Company considers the rate of interest it would pay on a secured borrowing in an amount equal to the lease payments for the underlying asset under similar terms. Operating leases are included in Operating lease ROU assets, Other current liabilities, and Non-current operating lease liabilities in the Consolidated Statements of Financial Position. Finance leases are included in Other non-current assets, Other current liabilities, and Other non-current liabilities in the Consolidated Statements of Financial Position.
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Principles of Consolidation | Principles of Consolidation The accompanying Consolidated Financial Statements include the accounts of Aon plc and those entities in which the Company has a controlling financial interest. To determine if Aon holds a controlling financial interest in an entity, the Company first evaluates if it is required to apply the variable interest model to the entity, otherwise, the entity is evaluated under the voting interest model. When Aon holds rights that give it the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance, combined with a variable interest that gives the right to receive potentially significant benefits or the obligation to absorb potentially significant losses, the Company has a controlling financial interest in that VIE. The Company does not hold a controlling financial interest over any VIEs that significantly impacts the VIE’s economic performance and the Company does not have rights to any significant benefits or obligations to absorb potentially significant losses. Thus, the Company does not consolidate any VIEs and Aon’s interest in VIEs as of December 31, 2022 was insignificant. Aon holds a controlling financial interest in entities that are not VIEs when it, directly or indirectly holds more than 50% of the voting rights and the noncontrolling interest holders do not hold substantive participating rights.
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Fair Value Measurements | Accounting standards establish a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair values as follows: •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. The following methods and assumptions are used to estimate the fair values of the Company’s financial instruments, including pension assets (refer to Note 11 “Employee Benefits”): Money market funds consist of institutional prime, treasury, and government money market funds. The Company reviews treasury and government money market funds to obtain reasonable assurance that the fund net asset value is $1 per share and reviews the floating net asset value of institutional prime money market funds for reasonableness. 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 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, 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 DCF 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 internal Company 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, 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. The underlying securities typically trade on a national securities exchange or may be valued by the fund managers using applicable models, inputs, and assumptions. 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 volatility. 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 DCF model utilizing assumptions such as discount rate, mortality, and inflation. Real estate and REITs consist of publicly traded 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 issuance costs, discount or premium. Fair value is based on quoted market prices or estimates using DCF analyses based on current borrowing rates for similar types of borrowing arrangements.
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New Accounting Pronouncements | New Accounting Pronouncements All issued, but not yet effective, guidance has been deemed not applicable or not significant to the Consolidated Financial Statements.
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Summary of Significant Accounting Principles and Practices (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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Schedule of Other Intangible Assets by Asset Class | Amortization basis and estimated useful lives by intangible asset type are generally as follows:
Other intangible assets by asset class are as follows (in millions):
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Revenue from Contracts with Customers (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disaggregation of Revenue |
Consolidated revenue from contracts with customers 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 Capitalized Contract Cost | Changes in the net carrying amount of costs to fulfill contracts with customers are as follows (in millions):
Changes in the net carrying amount of costs to obtain contracts with customers are as follows (in millions):
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Other Financial Data (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Financial Data [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Other Income (Expense) | The components of Other income (expense) are as follows (in millions):
(1) Refer to Note 11 “Employee Benefits” for further information.
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Schedule of Allowance for Doubtful Accounts | Changes in the net carrying amount of allowance for doubtful accounts are as follows (in millions):
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Schedule of Other Current Assets | The components of Other current assets are as follows (in millions):
(1)Refer to Note 3 “Revenue from Contracts with Customers” for further information.
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Schedule of 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):
(1) Refer to Note 3 “Revenue from Contracts with Customers” for further information. (2) Refer to Note 8 “Lease Commitments” for further information.
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Schedule of Other Current Liabilities | The components of Other current liabilities are as follows (in millions):
(1)$653 million and $553 million was recognized in the Consolidated Statements of Income during the years ended December 31, 2022 and December 31, 2021, respectively. (2)Refer to Note 8 “Lease Commitments” for further information.
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Schedule of Other Non-current Liabilities | The components of Other non-current liabilities are as follows (in millions):
(1)Includes $129 million and $145 million for the non-current portion of the transition tax as of December 31, 2022 and December 31, 2021, respectively. Refer to Note 9 “Income Taxes” for further information on the transition tax. (2)Refer to Note 8 “Lease Commitments” for further information.
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Acquisitions and Dispositions of Businesses (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Consideration Transferred and Preliminary Value of Intangible Assets | 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):
(1) Includes Cash and cash equivalents of $2 million and funds held on behalf of clients of an insignificant amount.
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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 for the years ended December 31, 2022 and 2021, respectively, are as follows (in millions):
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Schedule of Other Intangible Assets by Asset Class | Amortization basis and estimated useful lives by intangible asset type are generally as follows:
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, 2022 is as follows (in millions):
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Debt (Tables) |
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Outstanding Debt | The following is a summary of outstanding debt (in millions):
(1)The 2.20% Senior Notes due November 2022 were repaid in full on November 1, 2022. (2)The 4.00% Senior Notes due November 2023 were reclassified as Short-term debt and current portion of long-term debt in the Consolidated Statement of Financial Position as of December 31, 2022.
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Schedule of Repayments of Long-term Debt | Repayments of total debt as of December 31, 2022 are as follows (in millions):
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Schedule of Commercial Paper | Commercial paper outstanding, which is included in Short-term debt and current portion of long-term debt in the Company’s Consolidated Statements of Financial Position, is as follows (in millions):
The weighted average commercial paper outstanding and its related interest rates are as follows (in millions, except percentages):
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Lease Commitments (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assets And Liabilities Of Lessee | The classification of operating and finance lease asset and liability balances within the Consolidated Statements of Financial Position are as follows (in millions):
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Schedule of Lease, Cost | The components of lease costs are as follows (in millions):
(1) Short-term lease cost does not include expenses related to leases with a lease term of one month or less. Weighted average remaining lease term and discount rate related to operating and finance leases are as follows:
Other cash and non-cash related activities are as follows (in millions):
(1)The Company has recorded non-cash changes in Operating lease ROU assets and Non-current operating lease liabilities through Other assets and liabilities in Cash flows from operations within the Consolidated Statements of Cash Flows.
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Schedule of Lessee Operating Lease Liability Maturity | Maturity analysis of operating and finance leases as of December 31, 2022 are as follows (in millions):
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Schedule of Finance Lease, Liability, Maturity | Maturity analysis of operating and finance leases as of December 31, 2022 are as follows (in millions):
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Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of 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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Schedule of Reconciliation of the Income Tax Provisions based on the U.S. Statutory Corporate Tax Rate to the Provisions Reflected in the Consolidated Financial Statements |
(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 25.0%, 25.0% and 25.0% at December 31, 2022, 2021, and 2020, 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 and the tax holiday in Singapore. (2)In July 2020, final U.S. tax regulations were issued regarding the GILTI high tax election, allowing taxpayers to exclude from GILTI the income of a Controlled Foreign Corporation that incurs a foreign tax rate more than 90% of the top U.S. corporate tax rate. A GILTI high tax election may be made on an annual basis, and taxpayers may choose to apply the election to taxable years beginning after December 31, 2017. The Company expects to make the GILTI high-tax election for 2022 and therefore recorded the impact of making the election. (3)Excess tax benefits and deficiencies from share-based payment transactions are recognized as income tax expense or benefit in the Company’s Consolidated Statements of Income.
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Schedule of 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):
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Schedule of 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):
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Schedule of Operating and Capital Loss Carryforwards | The Company had the following carryforwards (in millions):
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Schedule of 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 (Deficit) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Repurchase Agreements | The following table summarizes the Company’s share repurchase activity (in millions, except per share data):
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Schedule of Components of Weighted Average Number of Shares Outstanding | Weighted average ordinary shares outstanding are as follows (in millions):
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Schedule of 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):
(1)Reclassifications from this category included in Accumulated other comprehensive loss are recorded in Total revenue, Interest expense, and Compensation and benefits in the 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 Consolidated Statements of Income.
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Employee Benefits (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Expense Recognized for Defined Contribution Savings Plans, Included in Compensation and Benefits and Discontinued Operations in the Consolidated Statements of Income | The expense for the significant plans in the U.S., U.K., Netherlands, and Canada is as follows (in millions):
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Schedule of Changes in Projected Benefit Obligations Fair Value of Plan Assets, Funded Status and Amount Recognized | 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, 2022 and 2021, and a statement of the funded status as of December 31, 2022 and 2021, for Aon’s significant U.K., U.S., and other major pension plans, which are located in the Netherlands and Canada. These plans represent approximately 88% of the Company’s projected benefit obligations.
The following table provides an overview of the accumulated PBO, fair value of plan assets, funded status and net amount recognized as of December 31, 2022 and 2021 for the Company’s other significant postretirement benefit plans located in the U.S. and Canada (in millions):
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Schedule of Amounts Recognized in the Consolidated Statements of Financial Position | Amounts recognized in the Consolidated Statements of Financial Position consist of (in millions):
(1)Included in Prepaid pension. (2)Included in Other current liabilities. (3)Included in Pension, other postretirement, and postemployment liabilities.
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Schedule of 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, 2022 and 2021 consist of (in millions):
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Schedule of Components of Net Periodic Benefit Cost for the Pension Plans | Service cost is reported in Compensation and benefits and all other components are reported in Other income (expense) as follows (in millions):
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Schedule of 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:
(1)U.S. pension plans are frozen and therefore not impacted by compensation increases or price inflation. The weighted-average assumptions used to determine the net periodic benefit cost are as follows:
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Schedule of Fair Values of Pension Plan Assets | The fair values of the Company’s U.S. pension plan assets at December 31, 2022 and December 31, 2021, by asset category, are as follows (in millions):
(1)Consists of cash and institutional short-term investment funds. (2)Certain investments 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 property funds and trusts holding direct real estate investments. (4)Consists of limited partnerships, private equity, and hedge funds. The fair values of the Company’s major U.K. pension plan assets at December 31, 2022 and December 31, 2021, by asset category, are as follows (in millions):
(1)Consists of cash and institutional short-term investment funds. (2)Certain investments 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 equity securities and equity derivatives, including repurchase agreements. (4)Consists of property funds and trusts holding direct real estate investments. (5)Consists of multi-strategy limited partnerships, private equity, hedge funds, and collective investment schemes with a diversified portfolio of cash, equities, equity related securities, derivatives, and/or fixed income securities. The fair values of the Company’s other major pension plan assets at December 31, 2022 and December 31, 2021, by asset category, are as follows (in millions):
(1)Consists of cash and institutional short-term investment funds. (2)Certain investments 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 limited partnerships, private equity, and hedge funds. (4)Consists of property funds and trusts holding direct real estate investments.
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Schedule of 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, 2022 and December 31, 2021 (in millions):
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Schedule of Estimated Future Benefit Payments | Estimated future benefit payments for plans, not including voluntary one-time lump sum payments, are as follows at December 31, 2022 (in millions):
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Schedule of Other Information Related to the Company's Other Post-Retirement Benefit Plans | Other information related to the Company’s other postretirement benefit plans are as follows:
|
Share-Based Compensation Plans (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of 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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Schedule of Restricted Share Unit Activity | The following table summarizes the status of the Company’s RSUs (shares in thousands, except fair value):
(1)Represents per share weighted average fair value of award at date of grant.
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Schedule of Performance-based Plans Information | The following table summarizes the status of the Company's PSAs at 100% of the targeted amount (shares in thousands, except fair value):
(1)Represents per share weighted average fair value of award at date of grant.
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Derivatives and Hedging (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Notional and Fair Values of Derivative Instruments | The notional and fair values of derivative instruments are as follows (in millions):
(1)Included within Other current assets ($3 million in 2022 and $21 million in 2021) or Other non-current assets ($9 million in 2022 and $8 million in 2021). (2)Included within Other current liabilities ($2 million in 2022) or Other non-current liabilities ($1 million in 2022). (3)These contracts typically are for 90-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.
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Schedule of Derivative Gains (Losses) | The amounts of derivative gains (losses) recognized in the Consolidated Financial Statements are as follows (in millions):
The amounts of derivative gains (losses) reclassified from Accumulated other comprehensive loss to the Consolidated Statements of Income are as follows (in millions):
|
Fair Value Measurements and Financial Instruments (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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, 2022 and December 31, 2021 (in millions):
(1)Included within Fiduciary assets or Short-term investments in the Consolidated Statements of Financial Position, depending on their nature and initial maturity. (2)Refer to Note 13 “Derivatives and Hedging” for additional information regarding the Company’s derivatives and hedging activity.
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Schedule of Financial Instruments where the Carrying Amounts and Fair Values Differ | The fair value of debt is classified as Level 2 of the fair value hierarchy. The following table provides the carrying value and fair value for the Company’s term debt (in millions):
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Segment Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disclosure on Geographic Areas of Fixed Assets and Operating Lease Right-of-Use Asset | Consolidated long-lived assets, net by geographic area are as follows (in millions):
|
Basis of Presentation - Additional Information (Details) - USD ($) $ in Millions |
1 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Nov. 30, 2022 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Issuance of debt | $ (1,967) | $ (1,495) | $ (991) | |
Repayment of debt | (500) | (413) | (607) | |
Non-cash pension settlement charges | $ 170 | 5 | 2 | |
Proceeds from issuance of shares | 58 | 55 | 44 | |
Cash paid for employee taxes on withholding shares | $ 215 | 185 | 193 | |
Revision of Prior Period, Reclassification, Adjustment | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Issuance of debt | 4,478 | 3,162 | ||
Repayment of debt | 3,807 | 3,275 | ||
Proceeds from issuance of shares | 55 | 44 | ||
Cash paid for employee taxes on withholding shares | $ 185 | $ 193 |
Summary of Significant Accounting Principles and Practices - Additional Information (Details) £ in Millions, $ in Millions |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 31, 2022
USD ($)
|
Dec. 31, 2022
GBP (£)
|
Dec. 31, 2021
USD ($)
|
Dec. 31, 2021
GBP (£)
|
Dec. 31, 2020
USD ($)
|
Dec. 31, 2019
USD ($)
|
|
Accounting Policies [Abstract] | ||||||
Cash and cash equivalents and short-term investments | $ 1,142.0 | $ 836.0 | ||||
Cash and cash equivalents and short term investments, period increase (decrease) | 306.0 | |||||
Restricted cash and investments, current | 115.0 | 160.0 | ||||
Operating funds required to be held by the Company in the U.K. | 72.5 | £ 60.1 | 112.8 | £ 84.3 | ||
Premium trust balances | 6,400.0 | 6,100.0 | ||||
Fiduciary receivables | 9,500.0 | 8,300.0 | ||||
Allowance for doubtful accounts | $ 76.0 | $ 90.0 | $ 98.0 | $ 77.0 |
Summary of Significant Accounting Principles and Practices - Intangible Assets (Details) |
12 Months Ended |
---|---|
Dec. 31, 2022 | |
Customer-related and contract-based | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life of finite-lived intangible assets | 7 years |
Customer-related and contract-based | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life of finite-lived intangible assets | 20 years |
Technology and other | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life of finite-lived intangible assets | 5 years |
Technology and other | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life of finite-lived intangible assets | 7 years |
Tradenames | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life of finite-lived intangible assets | 1 year |
Tradenames | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life of finite-lived intangible assets | 3 years |
Revenue from Contracts with Customers - Contract Assets Rollforward (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Capitalized Cost To Fulfill Customer Contracts | ||
Change in Capitalized Contract Costs | ||
Balance at beginning of period | $ 361 | $ 339 |
Additions | 1,479 | 1,504 |
Amortization | (1,480) | (1,478) |
Impairment | 0 | 0 |
Foreign currency translation and other | (5) | (4) |
Balance at end of period | 355 | 361 |
Capitalized Cost To Obtain Customer Contracts | ||
Change in Capitalized Contract Costs | ||
Balance at beginning of period | 179 | 184 |
Additions | 56 | 59 |
Amortization | (49) | (48) |
Impairment | 0 | 0 |
Foreign currency translation and other | (1) | (16) |
Balance at end of period | $ 185 | $ 179 |
Other Financial Data - Schedule of Other Income (Expense) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Other Financial Data [Abstract] | |||
Pension and other postretirement | $ (179) | $ 21 | $ 13 |
Foreign currency remeasurement | (14) | 26 | (12) |
Extinguishment of debt | 0 | 0 | (7) |
Financial instruments and other | 4 | (45) | (10) |
Equity earnings | 10 | 8 | 4 |
Gain from disposals of business | 54 | 142 | 25 |
Total | $ (125) | $ 152 | $ 13 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Total |
Other Financial Data - Schedule of Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | $ 90 | $ 98 | $ 77 |
Provision | 8 | 26 | 29 |
Accounts written off, net of recoveries | (18) | (37) | (6) |
Foreign currency translation and other | (4) | 3 | (2) |
Balance at end of period | $ 76 | $ 90 | $ 98 |
Other Financial Data - Schedule of Other Current Assets (Details) - USD ($) $ in Millions |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Other Financial Data [Abstract] | ||
Costs to fulfill contracts with customers | $ 355 | $ 361 |
Prepaid expenses | 109 | 137 |
Taxes receivable | 74 | 53 |
Other | 108 | 165 |
Total | $ 646 | $ 716 |
Other Financial Data - Components of Fixed Assets, Net (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Fixed Assets, net [Line Items] | |||
Fixed assets, gross | $ 1,949 | $ 1,847 | |
Less: Accumulated depreciation | 1,391 | 1,318 | |
Fixed assets, net | 558 | 529 | |
Depreciation of fixed assets | 151 | 179 | $ 167 |
Software | |||
Fixed Assets, net [Line Items] | |||
Fixed assets, gross | 861 | 797 | |
Leasehold improvements | |||
Fixed Assets, net [Line Items] | |||
Fixed assets, gross | 409 | 425 | |
Computer equipment | |||
Fixed Assets, net [Line Items] | |||
Fixed assets, gross | 269 | 268 | |
Furniture, fixtures and equipment | |||
Fixed Assets, net [Line Items] | |||
Fixed assets, gross | 267 | 279 | |
Construction in progress | |||
Fixed Assets, net [Line Items] | |||
Fixed assets, gross | 109 | 45 | |
Other | |||
Fixed Assets, net [Line Items] | |||
Fixed assets, gross | $ 34 | $ 33 |
Other Financial Data - Schedule of Other Non-current Assets (Details) - USD ($) $ in Millions |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Other Financial Data [Abstract] | ||
Costs to obtain contracts with customers | $ 185 | $ 179 |
Taxes receivable | 109 | 95 |
Investments | 60 | 64 |
Leases | 43 | 63 |
Other | 112 | 111 |
Total | $ 509 | $ 512 |
Other Financial Data - Schedule of Other Current Liabilities (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Other Financial Data [Abstract] | ||
Deferred revenue | $ 250 | $ 321 |
Taxes payable | 193 | 149 |
Leases | 186 | 213 |
Other | 718 | 648 |
Total | 1,347 | 1,331 |
Deferred revenue recognized | $ 653 | $ 553 |
Other Financial Data - Schedule of Other Non-current Liabilities (Details) - USD ($) $ in Millions |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Other Financial Data [Abstract] | ||
Taxes payable | $ 795 | $ 609 |
Compensation and benefits | 69 | 58 |
Deferred revenue | 37 | 70 |
Leases | 28 | 46 |
Other | 95 | 127 |
Other non-current liabilities | 1,024 | 910 |
Taxes payable, noncurrent, transition tax | $ 129 | $ 145 |
Acquisitions and Dispositions of Businesses - Completed Acquisitions (Details) $ in Millions |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Sep. 01, 2021
USD ($)
|
Dec. 31, 2022
USD ($)
acquisition
|
Dec. 31, 2021
acquisition
|
Nov. 01, 2022 |
May 03, 2022 |
Dec. 22, 2021 |
Aug. 31, 2021 |
|
Business Acquisition [Line Items] | |||||||
Number of business acquired under business combination | acquisition | 5 | 2 | |||||
Weighted average useful life | 9 years | ||||||
Revenues from acquisitions included in the Company's Consolidated Statement of Income | $ 25 | ||||||
E.R.N. Evaluacion de Riesgos Naturales y Antropogenicos, S.A. de C.V | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of capital acquired | 100.00% | ||||||
Karl Köllner Group | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of capital acquired | 100.00% | ||||||
For Welfare S.r.l | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of capital acquired | 100.00% | ||||||
Aon India Insurance Brokers Limited | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of capital acquired | 51.00% | ||||||
Equity interest in acquiree, percentage | 49.00% | ||||||
Equity interest in acquiree | $ 15 |
Acquisitions and Dispositions of Businesses - Schedule of Net Assets Acquired (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Assets acquired | |||
Goodwill | $ 8,292 | $ 8,434 | $ 8,666 |
2022 And 2021 Acquisitions | |||
Consideration transferred | |||
Cash | 161 | ||
Deferred and contingent consideration | 9 | ||
Aggregate consideration transferred | 170 | ||
Assets acquired | |||
Goodwill | 87 | ||
Intangible assets | 78 | ||
Other assets | 25 | ||
Total assets acquired | 190 | ||
Liabilities assumed | |||
Total liabilities assumed | 20 | ||
Net assets acquired | 170 | ||
Cash and cash equivalents | $ 2 |
Acquisitions and Dispositions of Businesses - Completed Dispositions (Details) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022
USD ($)
disposition
|
Dec. 31, 2021
USD ($)
disposition
|
Dec. 31, 2020
USD ($)
disposition
|
|
Business Combination and Asset Acquisition [Abstract] | |||
Number of dispositions | disposition | 3 | 6 | 1 |
Gain from disposals of business | $ | $ 54 | $ 142 | $ 25 |
Goodwill and Other Intangible Assets - Schedule of changes in the net carrying amount of goodwill (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Goodwill [Roll Forward] | ||
Balance at the beginning of the period | $ 8,434 | $ 8,666 |
Goodwill related to current year acquisitions | 87 | 17 |
Goodwill related to current year disposals | (11) | (37) |
Foreign currency translation and other | (218) | (212) |
Balance at the end of the period | $ 8,292 | $ 8,434 |
Goodwill and Other Intangible Assets - Schedule of other intangible assets by asset class (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 2,657 | $ 2,710 | |
Accumulated Amortization and Impairment | 2,210 | 2,218 | |
Net Carrying Amount | 447 | 492 | |
Amortization and impairment of intangible assets | 113 | 147 | $ 246 |
Customer-related and contract-based | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 2,207 | 2,289 | |
Accumulated Amortization and Impairment | 1,833 | 1,848 | |
Net Carrying Amount | 374 | 441 | |
Technology and other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 436 | 407 | |
Accumulated Amortization and Impairment | 363 | 357 | |
Net Carrying Amount | 73 | 50 | |
Tradenames | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 14 | 14 | |
Accumulated Amortization and Impairment | 14 | 13 | |
Net Carrying Amount | $ 0 | $ 1 |
Goodwill and Other Intangible Assets - Schedule of estimated future amortization expense on intangible assets (Details) $ in Millions |
Dec. 31, 2022
USD ($)
|
---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | |
2023 | $ 99 |
2024 | 82 |
2025 | 68 |
2026 | 47 |
2027 | 34 |
Thereafter | 117 |
Total | $ 447 |
Debt - Repayments of long-term debt (Details) $ in Millions |
Dec. 31, 2022
USD ($)
|
---|---|
Debt Disclosure [Abstract] | |
2023 | $ 946 |
2024 | 604 |
2025 | 750 |
2026 | 532 |
2027 | 1,121 |
Thereafter | 6,956 |
Total Repayments | 10,909 |
Unamortized discounts, premiums, and debt issuance costs | (139) |
Total Debt | $ 10,770 |
Debt - Schedule of Commercial Paper (Details) - Commercial paper - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Line of Credit Facility [Line Items] | ||
Commercial paper outstanding | $ 592.0 | $ 665.0 |
Weighted average commercial paper outstanding | $ 499.0 | $ 273.0 |
Weighted average interest rate of commercial paper outstanding | 1.42% | 0.01% |
Lease Commitments - Assets and Liabilities of Lessee (Details) - USD ($) $ in Millions |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Assets | ||
Operating lease assets | $ 699 | $ 786 |
Finance lease assets | 43 | 63 |
Total lease assets | $ 742 | $ 849 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other non-current assets | Other non-current assets |
Current lease liabilities | ||
Operating | $ 163 | $ 194 |
Finance | $ 23 | $ 19 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities |
Non-current lease liabilities | ||
Operating | $ 693 | $ 772 |
Finance | $ 28 | $ 46 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other non-current liabilities | Other non-current liabilities |
Total lease liabilities | $ 907 | $ 1,031 |
Lease Commitments - Lease Costs (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Leases [Abstract] | ||
Operating lease cost | $ 204 | $ 217 |
Finance lease costs | ||
Amortization of leased assets | 28 | 26 |
Interest on lease liabilities | 1 | 1 |
Variable lease cost | 38 | 49 |
Short-term lease cost | 11 | 11 |
Sublease income | (29) | (31) |
Net lease cost | $ 253 | $ 273 |
Lease Commitments - Lease Terms and Assumptions (Details) |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Weighted average remaining lease term (years) | ||
Operating leases | 6 years 8 months 12 days | 6 years 10 months 24 days |
Finance leases | 2 years 6 months | 3 years 7 months 6 days |
Weighted average discount rate | ||
Operating leases | 3.10% | 2.80% |
Finance leases | 1.00% | 1.00% |
Lease Commitments - Cash Flow of Lessee (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Cash paid for amounts included in the measurement of lease liabilities | ||
Operating cash flows for operating leases | $ 231 | $ 244 |
Financing cash flows for finance leases | 14 | 23 |
Non-cash related activities | ||
ROU assets obtained in exchange for new operating lease liabilities | 110 | 44 |
ROU assets obtained in exchange for new finance lease liabilities | 0 | 0 |
Operating lease ROU asset expense | 162 | 142 |
Changes in Non-current operating lease liabilities | $ (79) | $ (125) |
Lease Commitments - Lease Maturity (Details) $ in Millions |
Dec. 31, 2022
USD ($)
|
---|---|
Operating Leases | |
2023 | $ 175 |
2024 | 164 |
2025 | 135 |
2026 | 123 |
2027 | 108 |
Thereafter | 235 |
Total undiscounted future minimum lease payments | 940 |
Less: Imputed interest | (84) |
Present value of lease liabilities | 856 |
Finance Leases | |
2023 | 23 |
2024 | 18 |
2025 | 10 |
2026 | 0 |
2027 | 0 |
Thereafter | 0 |
Less: Imputed interest | 51 |
Less: Imputed interest | 0 |
Present value of lease liabilities | 51 |
Total | |
2023 | 198 |
2024 | 182 |
2025 | 145 |
2026 | 123 |
2027 | 108 |
Thereafter | 235 |
Total undiscounted future minimum lease payments | 991 |
Less: Imputed interest | (84) |
Present value of lease liabilities | $ 907 |
Income Taxes - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Income Tax Disclosure [Abstract] | |||
Statutory tax rate | 25.00% | 25.00% | 25.00% |
Increase in valuation allowance | $ 45 | ||
Unremitted earnings | 38 | $ 58 | |
Benefit realized from tax holiday granted | $ 115 | $ 104 | $ 97 |
Earnings per share impact of tax holiday (in dollars per share) | $ 0.54 | $ 0.46 | $ 0.42 |
Unrecognized tax benefits that would impact effective tax rate | $ 535 | $ 295 | $ 270 |
Accrued potential interest and penalties | 40 | 22 | 21 |
Liability recorded for interest and penalties | $ 181 | $ 142 | $ 120 |
Income Taxes - Components of Aon's deferred tax assets and liabilities (Details) - USD ($) $ in Millions |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Deferred tax assets: | ||
Net operating loss, capital loss, interest, and tax credit carryforwards | $ 952 | $ 581 |
Lease liabilities | 178 | 207 |
Employee benefit plans | 297 | 160 |
Other accrued expenses | 100 | 132 |
Accrued interest | 0 | 97 |
Federal and state benefit of interest from uncertain tax positions | 57 | 45 |
Deferred revenue | 26 | 36 |
Investment basis differences | 30 | 25 |
Lease and service guarantees | 1 | 1 |
Other | 38 | 25 |
Total | 1,679 | 1,309 |
Valuation allowance on deferred tax assets | (275) | (230) |
Total | 1,404 | 1,079 |
Deferred tax liabilities: | ||
Intangibles and property, plant and equipment | (258) | (243) |
Lease right-of-use asset | (151) | (173) |
Deferred costs | (147) | (159) |
Unremitted earnings | (38) | (58) |
Other accrued expenses | (20) | (27) |
Unrealized foreign exchange gains | (23) | (22) |
Other | (42) | (32) |
Total | (679) | (714) |
Net deferred tax asset | $ 725 | $ 365 |
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, 2022 |
Dec. 31, 2021 |
---|---|---|
Income Tax Disclosure [Abstract] | ||
Deferred tax assets — non-current | $ 824 | $ 766 |
Deferred tax liabilities — non-current | (99) | (401) |
Net deferred tax asset | $ 725 | $ 365 |
Income Taxes Operating Loss Carryforwards (Details) - USD ($) $ in Millions |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
U.K. | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 608 | $ 41 |
Capital loss carryforwards | 533 | 573 |
U.S. Federal | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 1 | 25 |
Capital loss carryforwards | 112 | 112 |
Interest Carryforward | 2,269 | 1,140 |
Foreign tax credit carryforwards | 20 | 18 |
U.S. State | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 473 | 398 |
Capital loss carryforwards | 123 | 123 |
Interest Carryforward | 1,187 | 551 |
Other | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 490 | 301 |
Capital loss carryforwards | 8 | 35 |
Interest Carryforward | 26 | 26 |
Other carryforwards | $ 5 | $ 5 |
Income Taxes - Reconciliation of the beginning and ending amount of unrecognized tax benefits (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Reconciliation of the Company's beginning and ending amount of unrecognized tax benefits | ||
Balance at the beginning of the period | $ 347 | $ 321 |
Additions based on tax positions related to the current year | 35 | 33 |
Additions for tax positions of prior years | 226 | 7 |
Reductions for tax positions of prior years | (1) | (4) |
Settlements | (1) | 0 |
Business combinations | 0 | 0 |
Lapse of statute of limitations | (5) | (10) |
Foreign currency translation | 0 | 0 |
Balance at the end of the period | $ 601 | $ 347 |
Shareholders' Equity (Deficit) - Distributable Profits (Details) - USD ($) $ in Billions |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Equity [Abstract] | ||
Distributable reserves available amount | $ 29.0 | $ 32.7 |
Shareholders' Equity (Deficit) - Ordinary Shares (Details) - USD ($) $ / shares in Units, shares in Millions |
1 Months Ended | 12 Months Ended | 129 Months Ended | |||||
---|---|---|---|---|---|---|---|---|
Feb. 18, 2022 |
Nov. 30, 2020 |
Jun. 30, 2017 |
Nov. 30, 2014 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2022 |
Apr. 30, 2012 |
|
Equity [Abstract] | ||||||||
Share repurchase authorization amount | $ 27,500,000,000 | $ 27,500,000,000 | $ 5,000,000,000 | |||||
Share repurchase authorization amount, increase during period | $ 7,500,000,000 | $ 5,000,000,000 | $ 5,000,000,000 | $ 5,000,000,000 | ||||
Number of shares repurchased (in shares) | 11.1 | 12.4 | 160.7 | |||||
Average price per share (in dollars per share) | $ 289.76 | $ 286.82 | ||||||
Repurchase costs recorded to accumulated deficit | $ 3,203,000,000 | $ 3,543,000,000 | $ 21,500,000,000 | |||||
Remaining authorized repurchase amount | $ 6,000,000,000 | $ 6,000,000,000 |
Shareholders' Equity (Deficit) - Schedule of weighted average shares outstanding (Details) - shares shares in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Equity [Abstract] | |||
Basic weighted average ordinary shares outstanding (in shares) | 211.7 | 224.7 | 231.9 |
Dilutive effect of potentially issuable shares (in shares) | 1.5 | 1.4 | 1.2 |
Diluted weighted average ordinary shares outstanding (in shares) | 213.2 | 226.1 | 233.1 |
Antidilutive securities excluded from computation of earnings per share (in shares) | 0.8 | 0.3 | 0.0 |
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, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Expense recognized for defined contribution savings plans | $ 188 | $ 184 | $ 155 |
U.S. | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Expense recognized for defined contribution savings plans | 108 | 103 | 87 |
U.K. | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Expense recognized for defined contribution savings plans | 47 | 46 | 42 |
Netherlands and Canada | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Expense recognized for defined contribution savings plans | $ 33 | $ 35 | $ 26 |
Employee Benefits - Amounts recognized in Accumulated other comprehensive loss that have not yet been recognized (Details) - Pension Plan - USD ($) $ in Millions |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
U.S. | ||
Amounts recognized in Accumulated other comprehensive loss unrecognized as components of net periodic benefit cost | ||
Net loss | $ 1,305 | $ 1,551 |
Prior service cost (income) | 0 | 0 |
Net amount recognized | 1,305 | 1,551 |
U.K. | ||
Amounts recognized in Accumulated other comprehensive loss unrecognized as components of net periodic benefit cost | ||
Net loss | 1,726 | 1,215 |
Prior service cost (income) | 35 | 40 |
Net amount recognized | 1,761 | 1,255 |
Other | ||
Amounts recognized in Accumulated other comprehensive loss unrecognized as components of net periodic benefit cost | ||
Net loss | 443 | 489 |
Prior service cost (income) | (6) | (6) |
Net amount recognized | $ 437 | $ 483 |
Employee Benefits - Expected Return on Plan Assets Narrative (Details) |
12 Months Ended |
---|---|
Dec. 31, 2022 | |
Pension Plan | U.S. | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Expected return on plan assets, net of administration expenses | 5.28% |
Employee Benefits - Schedule of changes in Level 3 fair value for U.K. Pension Plans (Details) - Pension Plan - U.K. - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Actual return on plan assets: | ||
Balance at the beginning of the period | $ 6,246 | $ 6,652 |
Foreign exchange | (559) | (76) |
Balance at the end of the period | 3,537 | 6,246 |
Significant Unobservable Inputs (Level 3) | ||
Actual return on plan assets: | ||
Balance at the beginning of the period | 2,305 | 2,625 |
Relating to assets still held at the end of the year | (674) | (286) |
Purchases, sales and settlements-net | 0 | 0 |
Foreign exchange | (228) | (34) |
Balance at the end of the period | $ 1,403 | $ 2,305 |
Employee Benefits - Cash Flows Narrative (Details) - Pension Plan $ in Millions |
Dec. 31, 2022
USD ($)
|
---|---|
U.S. | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Expected employer contributions during next fiscal year | $ 43 |
U.K. | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Expected employer contributions during next fiscal year | 4 |
Other | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Expected employer contributions during next fiscal year | $ 14 |
Employee Benefits - Estimated Future Benefit Payments (Details) - Pension Plan $ in Millions |
Dec. 31, 2022
USD ($)
|
---|---|
U.S. | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2023 | $ 157 |
2024 | 158 |
2025 | 158 |
2026 | 162 |
2027 | 155 |
2028 - 2032 | 754 |
U.K. | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2023 | 153 |
2024 | 157 |
2025 | 161 |
2026 | 166 |
2027 | 170 |
2028 - 2032 | 905 |
Other | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2023 | 46 |
2024 | 47 |
2025 | 49 |
2026 | 50 |
2027 | 51 |
2028 - 2032 | $ 274 |
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) - Other Post-Retirement Benefits - USD ($) $ in Millions |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Accumulated projected benefit obligation | $ 83 | $ 109 |
Fair value of plan assets | 14 | 17 |
Funded status | (69) | (92) |
Unrecognized prior-service credit | (1) | (1) |
Unrecognized loss | (19) | 2 |
Net amount recognized | $ (89) | $ (91) |
Employee Benefits - Schedule of Other information related to Company's other post-retirement plan's (Details) - Other Post-Retirement Benefits - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net periodic benefit cost recognized (millions) | $ 3 | $ 5 | $ 4 |
Minimum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Weighted-average discount rate used to determine future benefit obligations | 4.94% | 2.52% | 2.10% |
Weighted-average discount rate used to determine net periodic benefit costs | 1.45% | 2.93% | |
Maximum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Weighted-average discount rate used to determine future benefit obligations | 5.19% | 3.06% | 2.58% |
Weighted-average discount rate used to determine net periodic benefit costs | 2.68% | 3.25% |
Employee Benefits - U.S. and Canadian Other Post-Retirement Benefits Narrative (Details) - Other Post-Retirement Benefits $ in Millions |
Dec. 31, 2022
USD ($)
|
---|---|
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Expected amortization of prior service credit, next fiscal year | $ 0.8 |
Amounts in Accumulated other comprehensive income (loss) expected to be recognized as components of net periodic benefit cost in next fiscal year | 0.2 |
Expected employer contributions during next fiscal year | 5.0 |
Expected future benefit payments 2023 | 5.0 |
Expected future benefit payments 2028 – 2032 | $ 27.0 |
Share-Based Compensation Plans - Share-based compensation expense recognized in continuing operations (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | $ 397 | $ 449 | $ 312 |
Tax benefit | 83 | 87 | 61 |
Share-based compensation expense, net of tax | 314 | 362 | 251 |
Employee share purchase plans and other | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | 12 | 56 | 10 |
Restricted share units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | 251 | 204 | 186 |
Performance share awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | $ 134 | $ 189 | $ 116 |
Share-Based Compensation Plans - Restricted Share Units Narrative (Details) - Restricted share units (RSUs) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in dollars per share) | $ 279 | $ 253 | $ 185 |
Fair value of RSUs vested during the period | $ 216 | $ 189 | $ 190 |
Unamortized deferred compensation | $ 466 | ||
Weighted average remaining amortization period (in years) | 2 years | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 5 years |
Share-Based Compensation Plans - Performance Share Awards Narrative (Details) - Performance-based Awards - USD ($) $ / shares in Units, shares in Thousands, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
PSA, vesting conditions period (in years) | 3 years | ||
Granted (in dollars per share) | $ 311 | $ 225 | $ 163,000,000 |
Shares issued (in shares) | 888 | ||
Fair value of PSAs vested during the period | $ 145 | $ 112 | $ 121 |
Unamortized deferred compensation | $ 126 | ||
Weighted average remaining amortization period (in years) | 1 year 3 months 18 days | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
PSA, actual shares issued, percent | 0.00% | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
PSA, actual shares issued, percent | 200.00% |
Derivatives and Hedging - Narrative (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Derivative [Line Items] | |||
Estimated pretax losses currently included within Accumulated Other Comprehensive Loss that will be reclassified to earnings in next twelve months | $ 10 | ||
Gain (loss) on derivative | $ 4 | $ (45) | $ (10) |
Gross foreign exchange contracts | Not accounted for as hedges | |||
Derivative [Line Items] | |||
Derivative term of contract | 90 days | ||
Gain (loss) on derivative | $ (11) | $ 24 | $ (1) |
Gross foreign exchange contracts | Not accounted for as hedges | Maximum | |||
Derivative [Line Items] | |||
Derivative term of contract | 1 year | ||
Cash Flow Hedging | |||
Derivative [Line Items] | |||
Foreign currency exposures, maximum average hedging period (in years) | 2 years |
Derivatives and Hedging - Notional and fair values of derivative instruments (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Other Current Assets | ||
Derivative [Line Items] | ||
Derivative assets | $ 3 | $ 21 |
Other Noncurrent Assets | ||
Derivative [Line Items] | ||
Derivative assets | 9 | 8 |
Other Current Liabilities | ||
Derivative [Line Items] | ||
Derivative liabilities | 2 | |
Other Noncurrent Liabilities | ||
Derivative [Line Items] | ||
Derivative liabilities | 1 | |
Accounted for as hedges | Gross foreign exchange contracts | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 618 | 629 |
Derivative assets | 12 | 27 |
Derivative liabilities | 2 | 0 |
Not accounted for as hedges | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 930 | 1,041 |
Derivative assets | 12 | 29 |
Derivative liabilities | 3 | 0 |
Not accounted for as hedges | Gross foreign exchange contracts | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 312 | 412 |
Derivative assets | 0 | 2 |
Derivative liabilities | $ 1 | $ 0 |
Derivative term of contract | 90 days |
Derivatives and Hedging - Schedule of amounts of derivative gains (losses) recognized in the Consolidated Financial Statements (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Derivative [Line Items] | |||
(Loss) gain recognized in Accumulated other comprehensive loss | $ (15) | $ 0 | $ 1 |
Gain (loss) reclassified from accumulated other comprehensive loss, after adoption of ASU 2017-02 | 2 | (2) | (15) |
Total revenue | |||
Derivative [Line Items] | |||
Gain (loss) reclassified from accumulated other comprehensive loss, after adoption of ASU 2017-02 | 2 | (3) | (14) |
Compensation and benefits | |||
Derivative [Line Items] | |||
Gain (loss) reclassified from accumulated other comprehensive loss, after adoption of ASU 2017-02 | 0 | 1 | 0 |
Interest expense | |||
Derivative [Line Items] | |||
Gain (loss) reclassified from accumulated other comprehensive loss, after adoption of ASU 2017-02 | $ 0 | $ 0 | $ (1) |
Fair Value Measurements and Financial Instruments - Narrative (Details) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Fair Value Disclosures [Abstract] | |||
Unrealized gain (loss) related to assets and liabilities measured at fair value using unobservable inputs | $ 0 | $ 0 | $ 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, 2022 |
Dec. 31, 2021 |
---|---|---|
Fair value of assets and liabilities [Line Items] | ||
Long-term debt | $ 9,825 | $ 8,228 |
Carrying Value | ||
Fair value of assets and liabilities [Line Items] | ||
Current portion of long-term debt | 350 | 499 |
Long-term debt | 9,825 | 8,228 |
Fair Value | Fair Value, Inputs, Level 2 | ||
Fair value of assets and liabilities [Line Items] | ||
Current portion of long-term debt, fair value | 347 | 507 |
Long term debt, fair value | $ 8,745 | $ 9,204 |
Claims, Lawsuits, and Other Contingencies - Legal Narrative (Details) £ in Millions, $ in Millions, $ in Millions |
1 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Oct. 03, 2017
USD ($)
|
Oct. 03, 2017
NZD ($)
|
Dec. 31, 2022
plaintiff
|
Apr. 30, 2021
USD ($)
plaintiff
|
Apr. 30, 2021
GBP (£)
plaintiff
|
Aug. 31, 2020
USD ($)
plaintiff
|
Nov. 30, 2019
USD ($)
defendant
|
Nov. 30, 2018
USD ($)
|
Apr. 27, 2018
USD ($)
|
|
Pending Litigation | Aon Hewitt Investment Consulting, Inc. | |||||||||
Loss Contingencies [Line Items] | |||||||||
Investment losses suffered by plaintiff | $ 200.0 | ||||||||
Pending Litigation | Fatal Plain Crash In November2016 | |||||||||
Loss Contingencies [Line Items] | |||||||||
Value of damages sought | $ 35.0 | £ 29 | $ 844.0 | $ 16.0 | |||||
Loss contingency, number of defendants | defendant | 3 | ||||||||
Damages sought option 1 | $ 300.0 | ||||||||
Damages sought option 2 | 50.0 | ||||||||
Damages sought option 3 | $ 25.0 | ||||||||
Loss contingency, number of plaintiffs | plaintiff | 43 | 16 | 16 | 43 | |||||
Settled Litigation | Christchurch City Council | |||||||||
Loss Contingencies [Line Items] | |||||||||
Value of damages sought | $ 202.0 | $ 320 |
Claims, Lawsuits, and Other Contingencies - Guarantees and Indemnifications Narrative (Details) - USD ($) $ in Millions |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Commitments and Contingencies Disclosure [Abstract] | ||
Maximum potential funding under commitments | $ 173 | $ 153 |
Claims, Lawsuits, and Other Contingencies - Letters of Credit Narrative (Details) - USD ($) $ in Millions |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Commitments and Contingencies Disclosure [Abstract] | ||
Letters of credit outstanding | $ 74 | $ 75 |
Claims, Lawsuits, and Other Contingencies - Premium Payments (Details) - USD ($) $ in Millions |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Commitments and Contingencies Disclosure [Abstract] | ||
Maximum potential funding under commitments | $ 173 | $ 153 |
Segment Information - Narrative (Details) |
12 Months Ended |
---|---|
Dec. 31, 2022
segment
revenue_line
performance_metric
| |
Segment Reporting [Abstract] | |
Number of reportable segments | segment | 1 |
Number of revenue lines | revenue_line | 4 |
Number of performance metrics measured | performance_metric | 4 |
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