AON PLC, 10-Q filed on 7/26/2013
Quarterly Report
Document and Entity Information
6 Months Ended
Jun. 30, 2013
Document and Entity Information
 
Entity Registrant Name
Aon plc 
Entity Central Index Key
0000315293 
Document Type
10-Q 
Document Period End Date
Jun. 30, 2013 
Amendment Flag
false 
Current Fiscal Year End Date
--12-31 
Entity Current Reporting Status
Yes 
Entity Filer Category
Large Accelerated Filer 
Entity Common Stock, Shares Outstanding
307,461,251 
Document Fiscal Year Focus
2013 
Document Fiscal Period Focus
Q2 
Condensed Consolidated Statements of Income (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Revenue
 
 
 
 
Commissions, fees and other
$ 2,891 
$ 2,813 
$ 5,799 
$ 5,642 
Fiduciary investment income
6 
8 
13 
20 
Total revenue
2,897 
2,821 
5,812 
5,662 
Expenses
 
 
 
 
Compensation and benefits
1,712 
1,639 
3,437 
3,300 
Other general expenses
803 
788 
1,583 
1,566 
Total operating expenses
2,515 
2,427 
5,020 
4,866 
Operating income
382 
394 
792 
796 
Interest income
2 
2 
3 
5 
Interest expense
(48)
(57)
(100)
(116)
Other income
6 
12 
15 
12 
Income from continuing operations before income taxes
342 
351 
710 
697 
Income taxes
90 
96 
186 
193 
Income from continuing operations
252 
255 
524 
504 
Loss from discontinued operations before income taxes
0 
(1)
0 
(1)
Income taxes
0 
0 
0 
0 
Loss from discontinued operations
0 
(1)
0 
(1)
Net income
252 
254 
524 
503 
Less: Net income attributable to noncontrolling interests
11 
8 
22 
19 
Net income attributable to Aon shareholders
241 
246 
502 
484 
Net income (loss) attributable to Aon shareholders
 
 
 
 
Income from continuing operations
241 
247 
502 
485 
Loss from discontinued operations
0 
(1)
0 
(1)
Net income attributable to Aon shareholders
$ 241 
$ 246 
$ 502 
$ 484 
Basic net income per share attributable to Aon shareholders
 
 
 
 
Continuing operations (in dollars per share)
$ 0.77 
$ 0.74 
$ 1.59 
$ 1.46 
Discontinued operations (in dollars per share)
$ 0.00 
$ 0.00 
$ 0.00 
$ 0.00 
Net income (in dollars per share)
$ 0.77 
$ 0.74 
$ 1.59 
$ 1.46 
Diluted net income per share attributable to Aon shareholders
 
 
 
 
Continuing operations (in dollars per share)
$ 0.76 
$ 0.73 
$ 1.58 
$ 1.44 
Discontinued operations (in dollars per share)
$ 0.00 
$ 0.00 
$ 0.00 
$ 0.00 
Net income (in dollars per share)
$ 0.76 
$ 0.73 
$ 1.58 
$ 1.44 
Cash dividends per share paid on ordinary shares (in dollars per share)
$ 0.18 
$ 0.16 
$ 0.33 
$ 0.31 
Weighted average ordinary shares outstanding - basic
313.7 
332.0 
315.0 
332.2 
Weighted average ordinary shares outstanding - diluted
317.1 
335.6 
318.6 
336.1 
Condensed Consolidated Statements of Comprehensive Income (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Statement of Comprehensive Income [Abstract]
 
 
 
 
Net income
$ 252 
$ 254 
$ 524 
$ 503 
Less: Net income attributable to noncontrolling interests
11 
8 
22 
19 
Net income attributable to Aon shareholders
241 
246 
502 
484 
Other comprehensive (loss) income, net of tax:
 
 
 
 
Change in fair value of investments
13 
0 
13 
0 
Change in fair value of derivatives
(7)
(17)
(21)
(10)
Foreign currency translation adjustments
(58)
(197)
(232)
(93)
Post-retirement benefit obligation
18 
18 
41 
39 
Total other comprehensive loss
(34)
(196)
(199)
(64)
Less: Other comprehensive loss attributable to noncontrolling interests
(2)
(3)
(2)
(2)
Total other comprehensive loss attributable to Aon shareholders
(32)
(193)
(197)
(62)
Comprehensive income attributable to Aon shareholders
$ 209 
$ 53 
$ 305 
$ 422 
Condensed Consolidated Statements of Financial Position (USD $)
In Millions, unless otherwise specified
Jun. 30, 2013
Dec. 31, 2012
CURRENT ASSETS
 
 
Cash and cash equivalents
$ 266 
$ 291 
Short-term investments
307 
346 
Receivables, net
2,838 
3,101 
Fiduciary assets
12,576 
12,214 
Other current assets
406 
430 
Total Current Assets
16,393 
16,382 
Goodwill
8,795 
8,943 
Intangible assets, net
2,736 
2,975 
Fixed assets, net
808 
820 
Investments
172 
165 
Other non-current assets
1,158 
1,201 
TOTAL ASSETS
30,062 
30,486 
CURRENT LIABILITIES
 
 
Fiduciary liabilities
12,576 
12,214 
Short-term debt and current portion of long-term debt
427 
452 
Accounts payable and accrued liabilities
1,423 
1,853 
Other current liabilities
769 
831 
Total Current Liabilities
15,195 
15,350 
Long-term debt
4,012 
3,713 
Pension, other post-retirement and other post-employment liabilities
1,897 
2,276 
Other non-current liabilities
1,340 
1,342 
TOTAL LIABILITIES
22,444 
22,681 
EQUITY
 
 
Ordinary shares - $0.01 nominal value Authorized: 750 shares (issued: 2013 - 307.5; 2012 - 310.9)
3 
3 
Additional paid-in capital
4,560 
4,436 
Retained earnings
5,805 
5,933 
Accumulated other comprehensive loss
(2,809)
(2,610)
TOTAL AON SHAREHOLDERS’ EQUITY
7,559 
7,762 
Noncontrolling interests
59 
43 
TOTAL EQUITY
7,618 
7,805 
TOTAL LIABILITIES AND EQUITY
$ 30,062 
$ 30,486 
Condensed Consolidated Statements of Financial Position (Parenthetical) (USD $)
In Millions, except Per Share data, unless otherwise specified
Jun. 30, 2013
Dec. 31, 2012
Statement of Financial Position [Abstract]
 
 
Common stock, nominal or par value
$ 0.01 
$ 0.01 
Common stock, Authorized shares
750 
750 
Common stock, issued shares
307.5 
310.9 
Condensed Consolidated Statement of Shareholders' Equity (USD $)
In Millions, unless otherwise specified
Total
Ordinary Shares and Additional Paid-in Capital [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Loss, Net of Tax [Member]
Non-controlling Interests [Member]
Beginning Balance at Dec. 31, 2012
$ 7,805 
$ 4,439 
$ 5,933 
$ (2,610)
$ 43 
Beginning Balance (in shares) at Dec. 31, 2012
310.9 
310.9 
 
 
 
Increase (Decrease) in Shareholders' Equity
 
 
 
 
 
Net income
524 
 
502 
 
22 
Shares issued - employee benefit plans (in shares)
 
0.5 
 
 
 
Shares issued - employee benefit plans
16 
16 
 
 
 
Shares issued - employee compenation (in shares)
 
4.6 
 
 
 
Shares issued - employee compensation
(57)
(57)
 
 
 
Shares purchased (in shares)
 
(8.5)
 
 
 
Shares purchased
(525)
 
(525)
 
 
Tax benefit - employee benefit plans
35 
35 
 
 
 
Share-based compensation expense
137 
137 
 
 
 
Dividends to shareholders
(105)
 
(105)
 
 
Net change in fair value of investments
13 
 
 
13 
 
Net change in fair value of derivatives
(21)
 
 
(21)
 
Net foreign currency translation adjustments
(234)
 
 
(232)
(2)
Net post-retirement benefit obligation
41 
 
 
41 
 
Purchase of subsidiary shares from non-controlling interests
(6)
(7)
 
 
1 
Dividends paid to non-controlling interests on subsidiary common stock
(5)
 
 
 
(5)
Ending Balance at Jun. 30, 2013
$ 7,618 
$ 4,563 
$ 5,805 
$ (2,809)
$ 59 
Ending Balance (in shares) at Jun. 30, 2013
307.5 
307.5 
 
 
 
Condensed Consolidated Statements of Cash Flows (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES
 
 
Net income
$ 524 
$ 503 
Adjustments to reconcile net income to cash provided by operating activities:
 
 
Depreciation of fixed assets
118 
112 
Amortization of intangible assets
198 
208 
Share-based compensation expense
137 
105 
Deferred income taxes
24 
23 
Change in assets and liabilities:
 
 
Fiduciary receivables
(654)
(1,501)
Short term investments - funds held on behalf of clients
(212)
(519)
Fiduciary liabilities
866 
2,020 
Receivables, net
191 
81 
Accounts payable and accrued liabilities
(431)
(500)
Restructuring reserves
(5)
(38)
Current income taxes
(110)
48 
Pension, other post-retirement and other post-employment liabilities
(291)
(200)
Other assets and liabilities
32 
(73)
CASH PROVIDED BY OPERATING ACTIVITIES
387 
269 
CASH FLOWS FROM INVESTING ACTIVITIES
 
 
Sales of long-term investments
23 
51 
Purchases of long-term investments
(6)
(7)
Net sales of short-term investments - non-fiduciary
29 
259 
Acquisition of businesses, net of cash acquired
(23)
(82)
Proceeds from sale of businesses
1 
1 
Capital expenditures
(122)
(129)
CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES
(98)
93 
CASH FLOWS FROM FINANCING ACTIVITIES
 
 
Share repurchase
(525)
(350)
Issuance of shares for employee benefit plans
57 
64 
Issuance of debt
2,914 
332 
Repayment of debt
(2,607)
(305)
Cash dividends to shareholders
(105)
(102)
Purchase of shares from noncontrolling interests
0 
1 
Dividends paid to noncontrolling interests
(6)
(6)
CASH USED FOR FINANCING ACTIVITIES
(272)
(366)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
(42)
18 
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
(25)
14 
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
291 
272 
CASH AND CASH EQUIVALENTS AT END OF PERIOD
266 
286 
Supplemental disclosures:
 
 
Interest paid
121 
132 
Income taxes paid, net of refunds
$ 237 
$ 99 
Basis of Presentation
Basis of Presentation
Basis of Presentation
 
The accompanying unaudited Condensed Consolidated Financial Statements and Notes thereto have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”).  The Condensed Consolidated Financial Statements include the accounts of Aon plc and all controlled subsidiaries (“Aon” or the “Company”).  All material intercompany accounts and transactions have been eliminated.  The Condensed 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.
 
Certain information and footnote disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted.  These Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.  The results for the three and six months ended June 30, 2013 are not necessarily indicative of operating results that may be expected for the full year ending December 31, 2013.
 
Use of Estimates
 
The preparation of the accompanying unaudited Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of reserves and expenses. These estimates and assumptions are based on management’s best estimates and judgments.  Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances.  Aon adjusts such estimates and assumptions when facts and circumstances dictate.  Illiquid credit markets, volatile equity markets, and foreign currency movements have combined to 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 will be reflected in the financial statements in future periods.
Accounting Principles and Practices
Accounting Principles and Practices
Accounting Principles and Practices
 
Changes in Accounting Principles

Accumulated Other Comprehensive Income
 
In February 2013, the Financial Accounting Standards Board ("FASB") issued guidance on the disclosure of amounts to be reclassified out of accumulated other comprehensive income. The guidance requires that amounts reclassified out of accumulated other comprehensive income be presented either on the face of the statement of operations or in the notes to the financial statements by component. The guidance was effective for Aon beginning in the first quarter 2013. The adoption of this guidance did not have a material impact on the Company's Condensed Consolidated Financial Statements.

Indefinite-Lived Intangible Asset Impairment
 
In July 2012, the FASB issued guidance on the testing of indefinite-lived intangible assets for impairment that gives an entity the option to perform a qualitative assessment that may eliminate the requirement to perform the annual quantitative test.  The guidance gives an entity the option to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a an indefinite-lived intangible asset is less than its carrying amount.  If an entity concludes that this is the case, it must perform the quantitative test.  The guidance was effective for Aon beginning in the first quarter 2013.  The adoption of this guidance did not have a material impact on the Company’s Condensed Consolidated Financial Statements.
 
Balance Sheet Offsetting
 
In December 2011, the FASB issued guidance on the disclosure of offsetting assets and liabilities to enable users of financial statements to evaluate the effect or potential effect of netting arrangements on an entity's financial position. The objective of this disclosure is to facilitate comparison between those entities that prepare their financial statements on the basis of U.S. GAAP and those entities that prepare their financial statements on the basis of IFRS. The guidance requires certain derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and lending transactions to disclose both the gross and net position of these financial instruments. The guidance was effective for Aon beginning in the first quarter 2013.  The adoption of this guidance did not have a material impact on the Company’s Condensed Consolidated Financial Statements.
Cash and Cash Equivalents
Cash and Cash Equivalents
Cash and Cash Equivalents
 
Cash and cash equivalents include cash balances and all highly liquid investments with initial maturities of three months or less.  Short-term investments include certificates of deposit, money market funds and highly liquid debt instruments purchased with initial maturities in excess of three months but less than one year and are carried at amortized cost, which approximates fair value.
 
The Company is required to hold £77 million of operating funds in the U.K. as required by the Financial Conduct Authority, which were included in Short-term investments.  These operating funds, when translated to U.S. dollars, were $118 million and $124 million at June 30, 2013 and December 31, 2012, respectively.  Cash and cash equivalents included restricted balances of $83 million and $76 million at June 30, 2013 and December 31, 2012 respectively. The restricted balances primarily relate to cash required to be held as collateral.
Other Income
Other Income
Other Income
 
Other income consists of the following (in millions):
 
Three months ended
June 30,
 
Six months ended
June 30,
 
2013
 
2012
 
2013
 
2012
Equity earnings
$
4

 
$
3

 
$
6

 
$
8

Realized (loss) gain on sale of investments
(2
)
 
(8
)
 
(1
)
 
2

Foreign currency remeasurement (losses) gains
(5
)
 
18

 
19

 
—

Derivative gains (losses)
9

 
(2
)
 
(9
)
 
—

Other
—

 
1

 
—

 
2

 
$
6

 
$
12

 
$
15

 
$
12

Acquisitions and Dispositions
Acquisitions and Dispositions
Acquisitions and Dispositions
 
Acquisitions
 
During the six months ended June 30, 2013, the Company completed the acquisition of four businesses in the Risk Solutions segment and one business in the HR Solutions segment.  During the six months ended June 30, 2012, the Company completed the acquisition of two businesses in the HR Solutions segment and three businesses in the Risk Solutions segment.
 
The following table includes the aggregate consideration transferred and the preliminary value of intangible assets recorded as a result of the Company’s acquisitions:
 
 
Six months ended June 30,
(millions)
 
2013
 
2012
Consideration
 
$
23

 
$
96

Intangible assets:
 
 

 
 

Goodwill
 
$
16

 
$
57

Other intangible assets
 
11

 
42

     Total
 
$
27

 
$
99


 
The results of operations of these acquisitions are included in the Condensed Consolidated Financial Statements as of the acquisition date.  The results of operations of the Company would not have been materially different if these acquisitions had been reported from the beginning of the period.
 
Dispositions
 
During the six months ended June 30, 2013, the Company completed the sale of four businesses in the Risk Solutions segment. No pretax gain or loss was recognized on these sales. During the six months ended June 30, 2012, the Company completed the sale of one business in the HR Solutions segment and one business in the Risk Solutions segment.  A pretax gain of $2 million was recognized on these sales, which is included in Other income in the Condensed Consolidated Statements of Income.
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets
 
The change in the net carrying amount of goodwill by reportable segment for the six months ended June 30, 2013 is as follows (in millions):
 
Risk
Solutions
 
HR
Solutions
 
Total
Balance as of December 31, 2012
$
5,982

 
$
2,961

 
$
8,943

Goodwill related to current year acquisitions
14

 
2

 
16

Goodwill related to prior year acquisitions
(2
)
 
17

 
15

Foreign currency translation
(157
)
 
(22
)
 
(179
)
Balance as of June 30, 2013
$
5,837

 
$
2,958

 
$
8,795


 Other intangible assets by asset class are as follows (in millions):
 
June 30, 2013
 
December 31, 2012
 
Gross Carrying Amount
 
Accumulated
Amortization
 
Net Carrying Amount
 
Gross Carrying Amount
 
Accumulated
Amortization
 
Net Carrying Amount
Intangible assets with indefinite lives:
 

 
 

 
 

 
 

 
 

 
 

Tradenames
$
1,025

 
$
—

 
$
1,025

 
$
1,025

 
$
—

 
$
1,025

 
 
 
 
 
 
 
 
 
 
 
 
Intangible assets with finite lives:
 

 
 

 
 

 
 

 
 

 
 

Customer related and contract based
2,659

 
1,124

 
1,535

 
2,714

 
969

 
1,745

Marketing, technology and other (1)
600

 
424

 
176

 
619

 
414

 
205

 
$
4,284

 
$
1,548

 
$
2,736

 
$
4,358

 
$
1,383

 
$
2,975


 ______________________________________________
(1) Tradenames with finite lives disclosed separately in prior years are now presented in Marketing, technology and other

Amortization expense from finite lived intangible assets was $99 million and $198 million for the three and six months ended June 30, 2013, respectively. Amortization expense from finite lived intangible assets was $104 million and $208 million for the three and six months ended June 30, 2012, respectively.
 
The estimated future amortization for finite lived intangible assets as of June 30, 2013 is as follows (in millions):
 
HR Solutions
 
Risk Solutions
 
Total
Remainder of 2013
$
139

 
$
55

 
$
194

2014
240

 
94

 
334

2015
209

 
79

 
288

2016
175

 
67

 
242

2017
139

 
57

 
196

Thereafter
338

 
119

 
457

 
$
1,240

 
$
471

 
$
1,711

Restructuring
Restructuring
Restructuring
 
Aon Hewitt Restructuring Plan
 
On October 14, 2010, Aon announced a global restructuring plan (“Aon Hewitt Plan”) in connection with the acquisition of Hewitt Associates, Inc. ("Hewitt").  The Aon Hewitt Plan is intended to streamline operations across the combined Aon Hewitt organization, the Health & Benefits organization and shared services and facility rationalization across the Company. The Aon Hewitt Plan includes approximately 2,900 job eliminations. The Company expects these restructuring activities and related expenses to affect operations through the end of 2013.  The Aon Hewitt Plan is expected to result in cumulative costs of approximately $411 million through the end of the plan, consisting of approximately $261 million in employee termination costs and approximately $150 million in real estate rationalization costs across the Company. This represents an increase of $86 million in costs over the amount previously disclosed as the Company has finalized additional restructuring actions related to the Aon Hewitt Plan.
 
From the inception of the Aon Hewitt Plan through June 30, 2013, approximately 2,420 jobs have been eliminated and total expenses of $334 million have been incurred.  The Company recorded $53 million and $79 million of restructuring and related charges in the three and six months ended June 30, 2013, respectively. The Company recorded $13 million and $25 million of restructuring and related charges in the three and six months ended June 30, 2012, respectively. Charges related to the restructuring are included in Compensation and benefits and Other general expenses in the accompanying Condensed Consolidated Statements of Income.
 
The following table summarizes restructuring and related costs by type that have been incurred and are estimated to be incurred through the end of the restructuring initiative related to the Aon Hewitt Plan (in millions):
 
2010
 
2011
 
2012
 
Second Quarter 2013
 
Six Months 2013
 
Total to Date
 
Estimated Total Cost for Restructuring Plan (1)
Workforce reduction
$
49

 
$
64

 
$
74

 
$
14

 
$
38

 
$
225

 
$
261

Lease consolidation
3

 
32

 
18

 
34

 
36

 
89

 
128

Asset impairments
—

 
7

 
4

 
3

 
3

 
14

 
15

Other costs associated with restructuring (2)
—

 
2

 
2

 
2

 
2

 
6

 
7

Total restructuring expenses
$
52

 
$
105

 
$
98

 
$
53

 
$
79

 
$
334

 
$
411

 ______________________________________________
(1)
Actual costs, when incurred, will vary due to changes in the assumptions built into this plan.  Significant assumptions that may change when plans are finalized and implemented include, but are not limited to, changes in severance calculations, changes in the assumptions underlying sublease loss calculations due to changing market conditions, and changes in the overall analysis that might cause the Company to add or cancel component initiatives.
(2)
Other costs associated with restructuring initiatives, including moving costs and consulting and legal fees, are recognized when incurred.
 
The following table summarizes the restructuring and related expenses, by segment, that have been incurred and are estimated to be incurred through the end of the restructuring initiative related to the Aon Hewitt Plan (in millions):
 
2010
 
2011
 
2012
 
Second Quarter 2013
 
Six Months 2013
 
Total to Date
 
Estimated Total Cost for Restructuring Plan (1)
HR Solutions
$
52

 
$
49

 
$
66

 
$
36

 
51

 
$
218

 
$
249

Risk Solutions
—

 
56

 
32

 
17

 
28

 
116

 
162

Total restructuring expenses (1)
$
52

 
$
105

 
$
98

 
$
53

 
$
79

 
$
334

 
$
411

______________________________________________
(1) Costs included in the Risk Solutions segment are associated with the transfer of the health and benefits consulting business from HR Solutions to Risk Solutions effective January 1, 2012. Costs incurred in 2011 in the HR Solutions segment of $41 million related to the health and benefits consulting business have been reclassified and presented in the Risk Solutions segment.
 
As of June 30, 2013, the Company’s liabilities for its restructuring plans are as follows (in millions):
 
Aon Hewitt Plan
 
Aon Benfield Plan
 
2007 Plan
 
Other
 
Total
Balance at December 31, 2012
$
96

 
$
3

 
$
35

 
$
3

 
$
137

Expensed
76

 
—

 
—

 
—

 
76

Cash payments
(58
)
 
(1
)
 
(18
)
 
(1
)
 
(78
)
Foreign exchange translation and other
—

 
—

 
4

 
—

 
4

Balance at June 30, 2013
$
114

 
$
2

 
$
21

 
$
2

 
$
139

Investments
Investments
Investments
 
The Company earns income on cash balances and investments, as well as on premium trust balances that the Company maintains for premiums collected from insureds but not yet remitted to insurance companies, and funds held under the terms of certain outsourcing agreements to pay certain obligations on behalf of clients.  Premium trust balances and receivables, as well as a corresponding liability, are included in Fiduciary assets and Fiduciary liabilities in the accompanying Condensed Consolidated Statements of Financial Position.
 
The Company’s interest-bearing assets and other investments are included in the following categories in the Condensed Consolidated Statements of Financial Position (in millions):
 
6/30/2013
 
12/31/2012
Cash and cash equivalents
$
266

 
$
291

Short-term investments
307

 
346

Fiduciary assets (1)
4,089

 
4,029

Investments
172

 
165

 
$
4,834

 
$
4,831

  ______________________________________________
(1)
Fiduciary assets include funds held on behalf of clients but does not include fiduciary receivables.
 
The Company’s investments are as follows (in millions):
 
6/30/2013
 
12/31/2012
Equity method investments
$
94

 
$
102

Other investments
53

 
43

Fixed-maturity securities
25

 
20

 
$
172

 
$
165

Debt
Debt
Debt
 
The Company uses proceeds from the commercial paper market from time to time in order to meet short-term working capital needs.  At June 30, 2013, the Company had $347 million in commercial paper outstanding as compared to $50 million of commercial paper outstanding at December 31, 2012. The weighted average commercial paper outstanding for the three and six months ended June 30, 2013 was $358 million and $261 million, respectively. The weighted average interest rate of the commercial paper outstanding for the three and six months ended June 30, 2013 was 0.35% and 0.37%, respectively.

On March 8, 2013, the Company issued $90 million in aggregate principal amount of 4.250% Notes Due 2042. The 4.250% Notes Due 2042 constitute a further issuance of, and were consolidated to form a single series of debt securities with, the $166 million aggregate principal amount of the 4.250% Notes Due 2042 issued by Aon plc on December 12, 2012 (collectively, the "Original Notes"). The Original Notes were unconditionally guaranteed as to the payment of principal and interest by Aon Corporation.

On April 15, 2013, an S-4 registration statement registering $256 million in aggregate principal amount of 4.250% Notes Due 2042 (the "Exchange Notes") under the Securities Act of 1933 as amended (the "Securities Act") was declared effective by the Securities and Exchange Commission. The Exchange Notes are to be exchanged for the Original Notes. The form and terms of the Exchange Notes are substantially identical in all material respects to those of the Original Notes except that the Exchange Notes are registered under the Securities Act and the transfer restrictions, registration rights and related additional interest provisions applicable to the Original Notes do not apply to the Exchange Notes. Like the Original Notes, the Exchange Notes were issued by Aon plc and unconditionally guaranteed by Aon Corporation. All original notes were exchanged for Exchange Notes in the second quarter 2013.

On April 29, 2013, the Company amended its Euro Facility agreement to add Aon plc as an additional borrower. On May 8, 2013, the Company established a multi-currency commercial paper program in aggregate principal amount of up to €650 million. Aon Corporation is a guarantor under the program.

On May 21, 2013, the Company issued $250 million in aggregate principal amount of 4.45% Notes Due 2043. The 4.45% Notes Due 2043 were issued by Aon plc and fully and unconditionally guaranteed by Aon Corporation. The Company used the proceeds of the issuance to repay commercial paper borrowings and for general corporate purposes.

During the second quarter 2013, the Company used available funds to repay $306 million of the term loan credit facility due October 2013.
Shareholders' Equity
Shareholders' Equity
Shareholders’ Equity
 
Ordinary Shares
 
In April 2012, the Company’s Board of Directors authorized a share repurchase program under which up to $5.0 billion of Class A Ordinary Shares may be repurchased (“2012 Share Repurchase Program”). Under this program, shares may be repurchased through the open market or in privately negotiated transactions, from time to time, based on prevailing market conditions, and will be funded from available capital.
 
In the second quarter of 2013, the Company repurchased 3.5 million shares at an average price per share of $64.53 for a total cost of $225 million under the 2012 Share Repurchase Program. During the six months ended June 30, 2013, the Company repurchased 8.5 million shares at an average price per share of $61.75 for a total cost of $525 million under the 2012 Share Repurchase Program.  In the second quarter of 2012, the Company repurchased 5.3 million shares at an average price per share of $47.40 for a total cost of $250 million under the 2012 Share Repurchase Program. During the six months ended June 30, 2012, the Company repurchased 7.4 million shares at an average price per share of $47.66 for a total cost of $350 million under the 2012 Share Repurchase Program and the previously completed 2010 Share Repurchase Program. The remaining authorized amount for share repurchase under the 2012 Share Repurchase Program is $3.5 billion. Since the inception of the 2012 Share Repurchase Program, the Company repurchased a total of 28.0 million shares for an aggregate cost of $1.5 billion.
 
Participating Securities
 
Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid, are participating securities, as defined, and therefore, should be included in computing basic and diluted earnings per share using the two class method.  Certain of the Company’s restricted share awards allow the holder to receive a non-forfeitable dividend equivalent.
 
Income from continuing operations, income from discontinued operations and net income, attributable to participating securities, were as follows (in millions):
 
Three months ended
June 30,
 
Six months ended
June 30,
 
2013
 
2012
 
2013
 
2012
Income from continuing operations
$
2

 
$
3

 
$
5

 
$
6

Income from discontinued operations
—

 
—

 
—

 
—

Net income
$
2

 
$
3

 
$
5

 
$
6



 Weighted average shares outstanding are as follows (in millions):
 
 
Three months ended
June 30,
 
Six months ended
June 30,
 
2013
 
2012
 
2013
 
2012
Shares for basic earnings per share (1) 
313.7

 
332.0

 
315.0

 
332.2

Common stock equivalents
3.4

 
3.6

 
3.6

 
3.9

Shares for diluted earnings per share
317.1

 
335.6

 
318.6

 
336.1

   ______________________________________________
(1)    Includes 4.0 million and 4.8 million of participating securities for the three months ended June 30, 2013 and 2012, respectively, and 4.1 million and 4.8 million of participating securities for the six months ended June 30, 2013 and 2012, respectively.
 
Certain ordinary share equivalents were not included in the computation of diluted net income per share because their inclusion would have been antidilutive.  The number of shares excluded from the calculation was 0.0 million and 1.1 million for the three months ended June 30, 2013 and 2012, respectively, and 0.4 million and 0.6 million for the six months ended June 30, 2013 and 2012, respectively.
 
Accumulated Other Comprehensive Loss
 
Changes in Accumulated other comprehensive loss by component, net of related tax, are as follows (in millions):
 
Change in Fair Value of Investments (1)
 
Change in Fair Value of Derivatives (1)
 
Foreign Currency Translation Adjustments
 
Post-Retirement Benefit Obligation (2)
 
Total
Balance at December 31, 2012
$
—

 
$
(28
)
 
$
233

 
$
(2,815
)
 
$
(2,610
)
Other comprehensive loss before reclassifications, net
13

 
(30
)
 
(232
)
 
(4
)
 
(253
)
Amounts reclassified from accumulated other comprehensive loss:
 
 


 


 


 


Amounts reclassified from accumulated other comprehensive loss
—

 
16

 
—

 
66

 
82

Tax benefit
—

 
(7
)
 
—

 
(21
)
 
(28
)
Amounts reclassified from accumulated other comprehensive loss, net
—

 
9

 
—

 
45

 
54

Net current period other comprehensive (loss) income
13

 
(21
)
 
(232
)
 
41

 
(199
)
Balance at June 30, 2013
$
13

 
$
(49
)
 
$
1

 
$
(2,774
)
 
$
(2,809
)
______________________________________________
(1) Reclassifications from Accumulated other comprehensive loss are recorded in Other income
(2) Reclassifications from Accumulated other comprehensive loss are recorded in Compensation and benefits
Employee Benefits
Employee Benefits
Employee Benefits
 
The following table provides the components of the net periodic benefit cost for Aon’s U.S. pension plans, along with its most significant international pension plans, which are located in the U.K., the Netherlands and Canada (in millions):
 
Three months ended June 30,
 
U.K. and Non-U.S.
 
U.S.
 
2013
 
2012
 
2013
 
2012
Service cost
$
4

 
$
4

 
$
—

 
$
—

Interest cost
62

 
66

 
28

 
30

Expected return on plan assets
(88
)
 
(81
)
 
(35
)
 
(32
)
Amortization of net actuarial loss
19

 
15

 
13

 
11

Net periodic benefit cost
$
(3
)
 
$
4

 
$
6

 
$
9



 
Six months ended June 30,
 
U.K. and Non-U.S.
 
U.S.
 
2013
 
2012
 
2013
 
2012
Service cost
$
9

 
$
8

 
$
—

 
$
—

Interest cost
126

 
132

 
56

 
60

Expected return on plan assets
(178
)
 
(161
)
 
(69
)
 
(64
)
Amortization of net actuarial loss
37

 
29

 
26

 
22

Net periodic benefit cost
$
(6
)
 
$
8

 
$
13

 
$
18



Based on current assumptions, in 2013, Aon plans to contribute $167 million and $381 million to its U.S. and most significant international defined benefit pension plans, respectively. During the three months ended June 30, 2013, contributions of $35 million were made to the Company's U.S. pension plans and $64 million were made to its most significant international pension plans. During the six months ended June 30, 2013, contributions of $68 million were made to the Company’s U.S. pension plans and $231 million were made to its most significant international pension plans.
Share-Based Compensation Plans
Share-Based Compensation Plans
Share-Based Compensation Plans
 
The following table summarizes share-based compensation expense recognized in the Condensed Consolidated Statements of Income in Compensation and benefits (in millions):
 
Three months ended
June 30,
 
Six months ended
June 30,
 
2013
 
2012
 
2013
 
2012
Restricted stock units (“RSUs”)
$
40

 
$
34

 
$
95

 
$
83

Performance share awards (“PSAs”)
27

 
13

 
38

 
15

Stock options
—

 
1

 
1

 
3

Employee stock purchase plans
1

 
2

 
3

 
4

Total stock-based compensation expense
$
68

 
$
50

 
$
137

 
$
105


 
Share Awards
 
A summary of the status of the Company’s RSUs is as follows (shares in thousands):
 
Six months ended June 30,
 
2013
 
2012
 
Shares
 
Fair Value (1)
 
Shares
 
Fair Value (1)
Non-vested at beginning of period
10,432

 
$
44

 
9,916

 
$
42

Granted
3,505

 
62

 
4,706

 
45

Vested
(3,345
)
 
44

 
(2,986
)
 
42

Forfeited
(229
)
 
45

 
(356
)
 
44

Non-vested at end of period
10,363

 
50

 
11,280

 
44

 ______________________________________________
(1)
Represents per share weighted average fair value of award at date of grant

The vesting of PSAs is contingent upon meeting various individual, divisional or company-wide performance conditions, including revenue generation, or growth in revenue, pretax income or earnings per share over a one to five-year period. The performance conditions are not considered in the determination of the grant date fair value for these awards. The fair value of PSAs is based upon the market price of an Aon ordinary share at the date of grant. Compensation expense is recognized over the performance period, and in certain cases an additional vesting period, based on management's estimate of the number of units expected to vest. Compensation expense is adjusted to reflect the actual number of shares issued at the end of the programs. The actual issue of shares may range from 0-200% of the target number of PSAs granted, based on the plan. Dividend equivalents are not paid on PSAs.

Information as of June 30, 2013 regarding the Company’s target PSAs granted and shares that would be issued at current performance levels for PSAs granted during the six months ended June 30, 2013 and the years ended December 31, 2012 and 2011, respectively, is as follows (shares in thousands, dollars in millions, except fair value):
 
As of June 30, 2013
 
As of December
31, 2012

 
As of December
31, 2011

Target PSAs granted
1,135

 
1,369

 
1,715

Fair value (1)
$
58

 
$
47

 
$
50

Number of shares that would be issued based on current performance levels
1,135

 
1,958

 
1,339

Unamortized expense, based on current performance levels
$
59

 
$
49

 
$
11

 ______________________________________________
(1)
Represents per share weighted average fair value of award at date of grant.
 
Share Options
 
The Company did not grant any share options during the six months ended June 30, 2013 or 2012, respectively.
 
A summary of the status of the Company’s share options and related information is as follows (shares in thousands):
 
Six months ended June 30,
 
2013
 
2012
 
Shares
 
Weighted- Average
Exercise Price
 
Shares
 
Weighted- Average
Exercise Price
Beginning outstanding
5,611

 
$
32

 
9,116

 
$
32

Granted
—

 
—

 
—

 
—

Exercised
(1,318
)
 
31

 
(1,584
)
 
33

Forfeited and expired
(2
)
 
33

 
(51
)
 
37

Outstanding at end of period
4,291

 
33

 
7,481

 
32

Exercisable at end of period
4,063

 
32

 
6,931

 
31


 
The weighted average remaining contractual life, in years, of outstanding options was 2.4 years at both June 30, 2013 and 2012.
 
The aggregate intrinsic value represents the total pretax intrinsic value, based on options with an exercise price less than the Company’s closing stock price of $64.35 as of June 30, 2013, which would have been received by the option holders had those option holders exercised their options as of that date.  At June 30, 2013, the aggregate intrinsic value of options outstanding was $136 million, of which $131 million was exercisable.
 
Other information related to the Company’s share options is as follows (in millions):
 
Three months ended
June 30,
 
Six months ended
June 30,
 
2013
 
2012
 
2013
 
2012
Aggregate intrinsic value of stock options exercised
$
22

 
$
11

 
$
39

 
$
24

Cash received from the exercise of stock options
21

 
14

 
41

 
51

Tax benefit realized from the exercise of stock options
4

 
1

 
7

 
2


 
Unamortized deferred compensation expense, which includes both options and awards, amounted to $411 million as of June 30, 2013, with a remaining weighted-average amortization period of approximately 2.2 years.
Derivatives and Hedging
Derivatives and Hedging
Derivatives and Hedging
 
The Company is exposed to market risks, including changes in foreign currency exchange rates and interest rates.  To manage the risk related to these exposures, the Company enters into various derivative instruments that reduce these risks by creating offsetting exposures.  The Company does not enter into derivative transactions for trading or speculative purposes.
 
Foreign Exchange Risk Management
 
The Company is exposed to foreign exchange risk when it receives revenues, pays expenses, or enters into intercompany loans denominated in a currency that differs from its functional currency, or other transactions that are denominated in a currency other than its functional currency.  The Company uses foreign exchange derivatives, typically forward contracts, options and cross currency swaps, to reduce its overall exposure to the effects of currency fluctuations on cash flows.  These exposures are hedged, on average, for less than two years; however, in limited instances, the Company has hedged certain exposures up to five years in the future.
 
The Company also uses foreign exchange derivatives, typically forward contracts and options, to hedge its net investments in foreign operations for up to two years in the future.
 
The Company also uses foreign exchange derivatives, typically forward contracts and options, to manage 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, for up to one year in the future. These derivatives are not accounted for as hedges, and changes in fair value are recorded each period in Other income in the Condensed Consolidated Statements of Income.
 
Interest Rate Risk Management
 
The Company holds variable-rate short-term brokerage and other operating deposits. The Company uses interest rate derivatives, typically swaps, to reduce its exposure to the effects of interest rate fluctuations on the forecasted interest receipts from these deposits for up to two years in the future.
 
Certain derivatives also give rise to credit risks from the possible non-performance by counterparties.  The credit risk is generally limited to the fair value of those contracts that are favorable to the Company.  The Company has reduced its credit risk by using International Swaps and Derivatives Association (“ISDA”) master agreements, collateral and credit support arrangements, entering into non-exchange-traded derivatives with highly-rated major financial institutions and by using exchange-traded instruments.  The Company monitors the creditworthiness of, and exposure to, its counterparties.  As of June 30, 2013, all net derivative positions were free of credit risk contingent features.  The Company has not received or pledged any collateral related to derivative arrangements as of June 30, 2013.
 
The notional and fair values of derivative instruments are as follows (in millions):
 
Notional Amount
 
Derivative Assets
 
Derivative Liabilities
 
6/30/2013
 
12/31/2012
 
6/30/2013
 
12/31/2012
 
6/30/2013
 
12/31/2012
Derivatives accounted for as hedges:
 

 
 

 
 

 
 

 
 

 
 

Interest rate contracts
$
325

 
$
336

 
$
16

 
$
17

 
$
—

 
$
—

Foreign exchange contracts
1,072

 
1,208

 
39

 
191

 
110

 
250

Total
1,397

 
1,544

 
55

 
208

 
110

 
250

Derivatives not accounted for as hedges:
 

 
 

 
 

 
 

 
 

 
 

Foreign exchange contracts
295

 
305

 
1

 
2

 
1

 
1

   Total
$
1,692

 
$
1,849

 
$
56

 
$
210

 
$
111

 
$
251

 
Offsetting of financial assets and derivatives assets are as follows (in millions):
 
Gross Amounts of Recognized Assets
 
Gross Amounts Offset in the Statement of Financial Position
 
Net Amounts of Assets Presented in the Statement of Financial Position (1)
 
6/30/2013
 
12/31/2012
 
6/30/2013
 
12/31/2012
 
6/30/2013
 
12/31/2012
Derivatives accounted for as hedges:
 

 
 

 
 

 
 

 
 

 
 

Interest rate contracts
$
16

 
$
17

 
$
—

 
$
—

 
$
16

 
$
17

Foreign exchange contracts
39

 
191

 
(20
)
 
(160
)
 
19

 
31

Total
55

 
208

 
(20
)
 
(160
)
 
35

 
48

Derivatives not accounted for as hedges:
 

 
 

 
 

 
 

 
 

 
 

Foreign exchange contracts
1

 
2

 
—

 
—

 
1

 
2

   Total
$
56

 
$
210

 
$
(20
)
 
$
(160
)
 
$
36

 
$
50

______________________________________________
(1) Included within Other current assets or Other non-current assets

Offsetting of financial liabilities and derivative liabilities are as follows (in millions):
 
Gross Amounts of Recognized Liabilities
 
Gross Amounts Offset in the Statement of Financial Position
 
Net Amounts of Liabilities Presented in the Statement of Financial Position (2)
 
6/30/2013
 
12/31/2012
 
6/30/2013
 
12/31/2012
 
6/30/2013
 
12/31/2012
Derivatives accounted for as hedges:
 

 
 

 
 

 
 

 
 

 
 

Interest rate contracts
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Foreign exchange contracts
110

 
250

 
(20
)
 
(160
)
 
90

 
90

Total
110

 
250

 
(20
)
 
(160
)
 
90

 
90

Derivatives not accounted for as hedges:
 

 
 

 
 

 
 

 
 

 
 

Foreign exchange contracts
1

 
1

 
—

 
—

 
1

 
1

   Total
$
111

 
$
251

 
$
(20
)
 
$
(160
)
 
$
91

 
$
91


______________________________________________
(2) Included within Other current liabilities or Other non-current liabilities

The amounts of derivative gains (losses) recognized in the Condensed Consolidated Financial Statements for the three and six months ended June 30, 2013 and 2012 are as follows (in millions):
 
Three months ended
June 30,
 
Six months ended
June 30,
 
2013
 
2012
 
2013
 
2012
Gain (Loss) recognized in Accumulated Other Comprehensive Loss:
 

 
 

 
 
 
 
Cash Flow Hedges:
 

 
 

 
 
 
 
Interest rate contracts
$
—

 
$
—

 
$
—

 
$
—

Foreign exchange contracts
—

 
(32
)
 
(29
)
 
(30
)
Total
$
—

 
$
(32
)
 
$
(29
)
 
$
(30
)
Foreign Net Investment Hedges:
 

 
 

 
 
 
 
Foreign exchange contracts
$
—

 
$
11

 
$
—

 
$
1

Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion):
 
 
 
 
 
 
 
Cash Flow Hedges:
 

 
 

 
 
 
 
Interest rate contracts (1)
$
—

 
$
—

 
$
(1
)
 
$
—

Foreign exchange contracts (2)
14

 
(8
)
 
3

 
(16
)
Total
14

 
(8
)
 
2

 
(16
)
Foreign Net Investment Hedges:
 

 
 

 
 
 
 
Foreign exchange contracts
$
—

 
$
—

 
$
—

 
$
—

  ______________________________________________
(1) Included within Fiduciary investment income and Interest expense
(2) Included within Other income and Interest expense

 
Three months ended June 30,
 
Six months ended June 30,
 
Amount of Gain (Loss) Recognized in Income on Derivative (1) (2)
 
Amount of Gain (Loss) Recognized in Income on Related Hedge Item (2)
 
Amount of Gain (Loss) Recognized in Income on Derivative (1) (2)
 
Amount of Gain (Loss) Recognized in Income on Related Hedge Item (1) (2)
 
2013
 
2012
 
2013
 
2012
 
2013
 
2012
 
2013
 
2012
Fair value hedges:
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
Interest rate contracts
$
—

 
$
1

 
$
—

 
$
(1
)
 
$
(1
)
 
$
3

 
$
1

 
$
(3
)
  ______________________________________________
(1) Relates to fixed rate debt
(2) Included in Interest expense
 
The Company estimates that approximately $33 million of pretax losses currently included within Accumulated other comprehensive loss will be reclassified into earnings in the next twelve months.
 
The amount of gain (loss) recognized in income on the ineffective portion of derivatives for the three and six months ended June 30, 2013 and 2012 was not material.
 
During the three and six months ended June 30, 2013, the Company recorded a loss of $9 million and $18 million, respectively, in Other income for foreign exchange derivatives not designated or qualifying as hedges. During the three and six months ended June 30, 2012, the Company recorded a gain of $1 million and $7 million, respectively, in Other income for foreign exchange derivatives not designated or qualifying as hedges.
Fair Value and Financial Instruments
Fair Value and Financial Instruments
Fair Value 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:
 
Money market funds and highly liquid debt securities are carried at cost and amortized cost, respectively, as an approximation of fair value. Based on market convention, the Company considers cost a practical and expedient measure of fair value.
 
Cash, cash equivalents, and highly liquid debt instruments consist of cash and institutional short-term investment funds. The Company independently reviews the short-term investment funds to obtain reasonable assurance the fund net asset value is $1 per share.
 
Equity investments consist of domestic and international equity securities and exchange traded 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 equity security and volatility. The Company independently reviews the listing of Level 1 equity securities in the portfolio and agrees the closing stock prices to a national securities exchange, and on a sample basis, independently verifies the observable inputs for Level 2 equity derivatives and securities.
 
Fixed income investments consist of certain categories of bonds and derivatives. Corporate, government, and agency bonds are valued by pricing vendors who estimate fair value using recently executed transactions and proprietary models based on observable inputs, such as interest rate spreads, yield curves and credit risk. Asset-backed securities are valued by pricing vendors who estimate fair value using discounted cash flow models utilizing observable inputs based on trade and quote activity of securities with similar features. Fixed income derivatives are valued by pricing vendors using observable inputs such as interest rates and yield curves. The Company obtains a detailed understanding of the models, inputs, and assumptions used in developing prices provided by its vendors. This understanding includes discussions with valuation resources at the vendor. During these discussions, the Company uses a fair value measurement questionnaire, which is part of the Company’s internal controls over financial reporting, to obtain the information necessary to assert the model, inputs and assumptions used comply with U.S. GAAP, including disclosure requirements. The Company also obtains observable inputs from the pricing vendor and independently verifies the observable inputs, as well as assesses assumptions used for reasonableness based on relevant market conditions and internal Company guidelines. If an assumption is deemed unreasonable, based on the Company’s guidelines, it is then reviewed by a member of management and the fair value estimate provided by the vendor is adjusted, if deemed appropriate. These adjustments do not occur frequently and have not historically been material to the fair value estimates used in the Condensed Consolidated Financial Statements.
 
Pooled funds consist of various equity, fixed income, commodity, and real estate mutual fund type investment vehicles. Pooled investment funds fair value is estimated based on the proportionate share ownership in the underlying net assets of the investment, which is based on the fair value of the underlying securities that trade on a national securities exchange. Where possible, the Company independently reviews the listing 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 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. During these discussions with the investment managers, the Company uses a fair value measurement questionnaire, which is part of the Company’s internal controls over financial reporting, to obtain the information necessary to assert the model, inputs and assumptions used comply with U.S. GAAP, including disclosure requirements. The Company also obtains observable inputs from the investment manager and independently verifies the observable inputs, as well as assesses assumptions used for reasonableness based on relevant market conditions and internal Company guidelines. If an assumption is deemed unreasonable, based on the Company’s guidelines, it is then reviewed by a member of management and the fair value estimate provided by the vendor is adjusted, if deemed appropriate. These adjustments do not occur frequently and have not historically been material to the fair value estimates in the Condensed Consolidated Financial Statements.
 
Derivatives are carried at fair value, based upon industry standard valuation techniques that use, where possible, current market-based or independently sourced pricing inputs, such as interest rates, currency exchange rates, or implied volatilities.
 
Annuity contracts consist of insurance group annuity contracts purchased to match the pension benefit payment stream owed to certain selected plan participant demographics within a few major United Kingdom defined benefit plans. Annuity contracts are valued using a discounted cash flow model utilizing assumptions such as discount rate, mortality, and inflation. The Company independently verifies the observable inputs.
 
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. The Level 3 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 Level 3 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 Level 3 REITs.
 
Guarantees are carried at fair value, which is based on discounted estimated cash flows using published historical cumulative default rates and discount rates commensurate with the underlying exposure.
 
Debt is carried at outstanding principal balance, less any unamortized discount or premium. Fair value is based on quoted market prices or estimates using discounted cash flow analyses based on current borrowing rates for similar types of borrowing arrangements.
 
The following tables present the categorization of the Company’s assets and liabilities that are measured at fair value on a recurring basis at June 30, 2013 and December 31, 2012 (in millions):
 
 
 
Fair Value Measurements Using
 
Balance at June 30, 2013
 
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 and highly liquid debt securities (1)
$
2,438

 
$
2,413

 
$
25

 
$
—

Other investments:
 

 
 

 
 

 
 

Fixed maturity securities:
 

 
 

 
 

 
 

Corporate bonds
18

 
—

 
—

 
18

Government bonds
7

 
—

 
7

 
—

Equity securities
28

 
28

 
—

 
—

Derivatives:
 

 
 

 
 

 
 

Interest rate contracts
16

 
—

 
16

 
—

Foreign exchange contracts
40

 
—

 
40

 
—

Liabilities:
 

 
 

 
 

 
 

Derivatives:
 

 
 

 
 

 
 

Foreign exchange contracts
111

 
—

 
111

 
—

  ______________________________________________
(1) Includes $2,413 million of money market funds and $25 million of highly liquid debt securities that are classified as Fiduciary assets, Short-term investments or Cash and cash equivalents in the Condensed Consolidated Statements of Financial Position, depending on their nature and initial maturity.  See Note 8 “Investments” for additional information regarding the Company’s investments.
 
 
 
Fair Value Measurements Using
 
Balance at December 31, 2012
 
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 and highly liquid debt securities (1)
$
2,133

 
$
2,108

 
$
25

 
$
—

Other investments:
 

 
 

 
 

 
 

Fixed maturity securities:
 

 
 

 
 

 
 

Corporate bonds
12

 
—

 
—

 
12

Government Bonds
8

 
—

 
8

 
—

Equity securities
5

 
5

 
—

 
—

Derivatives:
 

 
 

 
 

 
 

Interest rate contracts
17

 
—

 
17

 
—

Foreign exchange contracts
193

 
—

 
193

 
—

Liabilities:
 

 
 

 
 

 
 

Derivatives:
 

 
 

 
 

 
 

Foreign exchange contracts
251

 
—

 
251

 
—

  ______________________________________________
(1)  Includes $2,108 million of money market funds and $25 million of highly liquid debt securities that are classified as Fiduciary assets, Short-term investments or Cash and cash equivalents in the Condensed Consolidated Statements of Financial Position, depending on their nature and initial maturity.  See Note 8 “Investments” for additional information regarding the Company’s investments.
 
There were no transfers of assets or liabilities between fair value hierarchy levels in the three and six months ended June 30, 2013 and 2012, respectively. The Company recognized $6 million of unrealized gains in Accumulated other comprehensive loss during the three and six months ended June 30, 2013, respectively, related to assets and liabilities measured at fair value using unobservable inputs. There were no realized or unrealized gains or losses recognized in the Condensed Consolidated Statements of Income or Financial Position during either the three and six months ended June 30, 2012 related to assets and liabilities measured at fair value using unobservable inputs.
 
The fair value of all long-term debt instruments is classified as Level 2. The following table discloses the Company’s financial instruments where the carrying amounts and fair values differ (in millions):
 
June 30, 2013
 
December 31, 2012
 
Carrying Value
 
Fair Value
 
Carrying Value
 
Fair Value
Long-term debt
$
4,012

 
$
4,289

 
$
3,713

 
$
4,162

Commitments and Contingencies
Commitments and Contingencies
Commitments and Contingencies
 
Legal
 
Aon and its subsidiaries are subject to numerous claims, tax assessments, lawsuits and proceedings that arise in the ordinary course of business, which frequently include errors and omissions (“E&O”) claims. The damages claimed in these matters are or may be substantial, including, in many instances, claims for punitive, treble or extraordinary damages. Aon has historically purchased E&O insurance and other insurance 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 historical claims. Accruals for these exposures, and related insurance receivables, when applicable, have been provided to the extent that losses are deemed probable and are reasonably estimable. These amounts are adjusted from time to time as developments warrant. Amounts related to settlement provisions are recorded in Other general expenses in the Condensed Consolidated Statements of Income.
 
A retail insurance brokerage subsidiary of Aon provides insurance brokerage services to Northrop Grumman Corporation (“Northrop”). This Aon subsidiary placed Northrop’s excess property insurance program for the period covering 2005. Northrop suffered a substantial loss in August 2005 when Hurricane Katrina damaged Northrop’s facilities in the Gulf states. Northrop’s excess insurance carrier, Factory Mutual Insurance Company (“Factory Mutual”), denied coverage for the claim pursuant to a flood exclusion. Northrop sued Factory Mutual in the United States District Court for the Central District of California and later sought to add this Aon subsidiary as a defendant, asserting that if Northrop’s policy with Factory Mutual does not cover the losses suffered by Northrop stemming from Hurricane Katrina, then this Aon subsidiary will be responsible for Northrop’s losses. On August 26, 2010, the court granted in large part Factory Mutual’s motion for partial summary judgment regarding the applicability of the flood exclusion and denied Northrop’s motion to add this Aon subsidiary as a defendant in the federal lawsuit. On January 27, 2011, Northrop filed suit against this Aon subsidiary in state court in Los Angeles, California, pleading claims for negligence, breach of contract and negligent misrepresentation. Aon believes that it has meritorious defenses and intends to vigorously defend itself against these claims. The outcome of this lawsuit, and the amount of any losses or other payments that may result, cannot be estimated at this time.
 
Another retail insurance brokerage subsidiary of Aon has been sued in Tennessee state court by a client, Opry Mills Mall Limited Partnership (“Opry Mills”) that sustained flood damage to its property in May 2010. The lawsuit seeks $200 million from numerous insurers with whom this Aon subsidiary placed the client’s property insurance coverage. The insurers contend that only $50 million in coverage is available for the loss because the flood event occurred on property in a high hazard flood zone. Opry Mills is seeking full coverage from the insurers for the loss and has sued this Aon subsidiary in the alternative for the same $150 million difference on various theories of professional liability if the court determines there is not full coverage. In addition, Opry Mills seeks prejudgment interest, attorneys' fees and enhanced damages which could substantially increase Aon's exposure. Aon believes it has meritorious defenses and intends to vigorously defend itself against these claims. The outcome of this lawsuit, and the amount of any losses or other payments that may result, cannot be estimated at this time.
 
A pensions consulting and administration subsidiary of Hewitt prior to its acquisition by Aon provided advisory services to the Trustees of the Philips UK pension fund and the relevant employer of fund beneficiaries (together, “Philips”). In December 2011, the Aon subsidiary received notice of a potential claim alleging negligence and breach of duty. The notice asserts Philips’ right to claim damages related to Philips’ use of a credit default swap hedging strategy pursuant to the supply of the advisory services, which is said to have resulted in substantial damages to Philips. No lawsuit has yet been filed. Aon believes that it has meritorious defenses and intends to vigorously defend itself against these allegations. The outcome of this circumstance, and the amount of any losses or other payments that may result, cannot be estimated at this time.
 
Mazeikiu Nafta ("MN"), which operates an oil refinery in Lithuania, has sued an insurance brokerage subsidiary of Aon in London. Aon placed property damage and business interruption coverage for MN. There was a fire at the refinery in 2006. MN settled with insurers in November 2011 and claimed against Aon in December 2012. The claim is for $125 million, which is the shortfall alleged by MN to have been caused by Aon's failure to obtain appropriate business interruption coverage. Aon believes that it has meritorious defenses and intends to vigorously defend itself against these allegations. The outcome of this lawsuit, and the amount of any losses or other payments that may result, cannot be estimated at this time.

From time to time, Aon’s clients may bring claims and take legal action pertaining to the performance of fiduciary responsibilities. Whether client claims and legal action related to the Company’s performance of fiduciary responsibilities are founded or unfounded, if such claims and legal actions are resolved in a manner unfavorable to the Company, they may adversely affect Aon’s financial results and materially impair the market perception of the Company and that of its products and services.
 
Although the ultimate outcome of all matters referred to above cannot be ascertained, and liabilities in indeterminate amounts may be imposed on Aon or its subsidiaries, on the basis of present information, amounts already provided, availability of insurance coverages and legal advice received, it is the opinion of management that the disposition or ultimate determination of such claims will not have a material adverse effect on the consolidated financial position of Aon. However, it is possible that future results of operations or cash flows for any particular quarterly or annual period could be materially affected by an unfavorable resolution of these matters.
 
Guarantees and Indemnifications
 
In connection with the redomicile of Aon's headquarters ("the Redomestication"), the Company on April 2, 2012 entered various agreements pursuant to which it agreed to guarantee the obligations of its subsidiaries arising under issued and outstanding debt securities. Those agreements included the (1) Amended and Restated Indenture, dated as of April 2, 2012, among Aon Corporation, Aon plc, and The Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”) (amending and restating the Indenture, dated as of September 10, 2010, between Aon Corporation and the Trustee), (2) Amended and Restated Indenture, dated as of April 2, 2012, among Aon Corporation, Aon plc and the Trustee (amending and restating the Indenture, dated as of December 16, 2002, between Aon Corporation and the Trustee), (3) Amended and Restated Indenture, dated as of April 2, 2012, among Aon Corporation, Aon plc and the Trustee (amending and restating the Indenture, dated as of January 13, 1997, as supplemented by the First Supplemental Indenture, dated as of January 13, 1997) (4) First Supplemental Indenture, dated as of April 2, 2012, among Aon Finance N.S. 1, ULC, as issuer, Aon Corporation, as guarantor, Aon plc, as guarantor, and Computershare Trust Company of Canada, as trustee, and (5) Amended and Restated Trust Deed, among Aon Corporation, Aon plc, Aon Services Luxembourg & Co S.C.A. (formerly known as Aon Financial Services Luxembourg S.A.) (“Aon Luxembourg”) and BNY Mellon Corporate Trustee Services Limited, as trustee (the “Luxembourg Trustee”) (amending and restating the Trust Deed, dated as of July 1, 2009, as amended and restated on January 12, 2011, among Aon Delaware, Aon Luxembourg and the Luxembourg Trustee).
 
Effective as of the same date, the Company also entered into agreements pursuant to which it agreed to guarantee the obligations of its subsidiaries arising under the (1) $450,000,000 Term Credit Agreement dated June 15, 2011, among Aon Corporation, as borrower, Bank of America, N.A., as administrative agent and the other agents and lenders party thereto, (2) $400,000,000 Five-Year Agreement dated March 20, 2012, among Aon Corporation, as borrower, Citibank, N.A., as administrative agent and the other agents and lenders party thereto and (3) €650,000,000 Facility Agreement, dated October 15, 2010, among Aon Corporation, the subsidiaries of Aon Corporation party thereto as borrowers, Citibank International plc, as agent, and the other agents and lenders party thereto, as amended on July 18, 2011.
 
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 that are deemed to be probable and reasonably estimable are included in the Company’s Condensed Consolidated Financial Statements.

The Company expects that, as prudent business interests dictate, additional guarantees and indemnifications may be issued from time to time.

Letters of Credit
 
The Company had total letters of credit (“LOCs”) outstanding for approximately $69 million at June 30, 2013, as compared to $74 million at December 31, 2012. These letters of credit cover the beneficiaries related to certain of Aon’s U.S. and Canadian non-qualified pension plan schemes and secure deductible retentions for Aon’s own workers compensation program. The Company has also issued LOCs to cover contingent payments for taxes and other business obligations to third parties, and other guarantees for miscellaneous purposes at its international subsidiaries. Amounts are accrued in the Condensed Consolidated Financial Statements to the extent the guarantees are probable and estimable.
 
Commitments

The Company has provided commitments to fund certain limited partnerships in which it has an interest in the event that the general partners request funding. Some of these commitments have specific expiration dates and the maximum potential funding under these commitments was $42 million at June 30, 2013. During the three and six months ended June 30, 2013, the Company funded $3 million and $6 million, respectively of these commitments.
 
Premium Payments

The Company has certain contractual contingent guarantees for premium payments owed by clients to certain insurance companies. Costs associated with these guarantees, to the extent estimable and probable, are provided in Aon’s allowance for doubtful accounts. The maximum exposure with respect to such contractual contingent guarantees was approximately $95 million at June 30, 2013 as compared to $104 million at December 31, 2012.
Segment Information
Segment Information
Segment Information
 
The Company has two reportable segments:  Risk Solutions and HR Solutions.  Unallocated income and expenses, when combined with the operating segments and after the elimination of intersegment revenues and expenses, equal the amounts in the Condensed Consolidated Financial Statements.
 
Reportable operating segments have been determined using a management approach, which is consistent with the basis and manner in which Aon’s chief operating decision-maker (“CODM”) uses financial information for the purposes of allocating resources and evaluating performance.  The CODM assesses performance based on operating income and generally accounts for inter-segment revenue as if the revenue were from third parties and at what management believes are current market prices.  The Company does not present net assets by segment as this information is not reviewed by the CODM.
 
Risk Solutions acts as an advisor and insurance and reinsurance broker, helping clients manage their risks, via consultation, as well as negotiation and placement of insurance risk with insurance carriers through Aon’s global distribution network.
 
HR Solutions partners with organizations to solve their most complex benefits, talent and related financial challenges, and improve business performance by designing, implementing, communicating and administering a wide range of human capital, retirement, investment management, health care, compensation and talent management strategies.
  
Aon’s total revenue is as follows (in millions):
 
Three months ended June 30,
 
Six months ended June 30,
 
2013

2012
 
2013
 
2012
Risk Solutions
$
1,944


$
1,899

 
$
3,915

 
$
3,804

HR Solutions
956


931

 
1,910

 
1,876

Intersegment elimination
(3
)

(9
)
 
(13
)
 
(18
)
Total revenue
$
2,897


$
2,821

 
$
5,812

 
$
5,662



Commissions, fees and other revenues by product are as follows (in millions):
 
Three months ended June 30,
 
Six months ended June 30,
 
2013
 
2012
 
2013
 
2012
Retail brokerage
$
1,562

 
$
1,511

 
$
3,124

 
$
3,005

Reinsurance brokerage
376

 
380

 
778

 
779

Total Risk Solutions Segment
1,938

 
1,891

 
3,902

 
3,784

Consulting services
388

 
366

 
770

 
746

Outsourcing
578

 
570

 
1,159

 
1,138

Intrasegment
(10
)
 
(5
)
 
(19
)
 
(8
)
Total HR Solutions Segment
956

 
931

 
1,910

 
1,876

Intersegment
(3
)
 
(9
)
 
(13
)
 
(18
)
Total commissions, fees and other revenue
$
2,891

 
$
2,813

 
$
5,799

 
$
5,642


 
Fiduciary investment income by segment is as follows (in millions):
 
Three months ended June 30,
 
Six months ended June 30,
 
2013
 
2012
 
2013
 
2012
Risk Solutions
$
6

 
$
8

 
$
13

 
$
20

HR Solutions
—

 
—

 
—

 
—

Total fiduciary investment income
$
6

 
$
8

 
$
13

 
$
20


 
A reconciliation of segment operating income before tax to income before income taxes is as follows (in millions):
 
Three months ended June 30,
 
Six months ended June 30,
 
2013
 
2012
 
2013
 
2012
Risk Solutions
$
391

 
$
384

 
$
794

 
$
750

HR Solutions
36

 
58

 
87

 
131

Segment income before income taxes
427

 
442

 
881

 
881

Unallocated expenses
(45
)
 
(48
)
 
(89
)
 
(85
)
Interest income
2

 
2

 
3

 
5

Interest expense
(48
)
 
(57
)
 
(100
)
 
(116
)
Other income
6

 
12

 
15

 
12

Income before income taxes
$
342

 
$
351

 
$
710

 
$
697


 
Unallocated expenses include administrative or other costs not attributable to the operating segments, such as corporate governance costs. Interest income represents income earned primarily on operating cash balances and certain income producing securities. Interest expense represents the cost of worldwide debt obligations.
 
Other income consists of equity earnings, realized gains or losses on the sale of investments, gains or losses on the disposal of businesses, gains or losses on derivatives, and gains or losses on foreign currency transactions.
Guarantee of Registered Securities
Guarantee of Registered Securities
Guarantee of Registered Securities
 
As described in Note 15, in connection with the Redomestication, Aon plc entered into various agreements pursuant to which it agreed to guarantee the obligations of Aon Corporation arising under issued and outstanding debt securities. Aon Corporation is a 100% indirectly owned subsidiary of Aon plc. The debt securities that are subject to Rule 3-10 of Regulation S-X are the 3.50% senior notes due September 2015, the 3.125% senior notes due May 2016, the 5.00% senior notes due September 2020, the 8.205% junior subordinated deferrable interest debentures due January 2027 and the 6.25% senior notes due September 2040. All guarantees of Aon plc are full and unconditional. There are no subsidiaries of Aon plc that are guarantors of the debt.

Aon Corporation entered into an agreement pursuant to which it agreed to guarantee the obligations of Aon plc arising under the 4.250% Notes Due 2042 exchanged for Aon Corporation's outstanding 8.205% junior subordinated deferrable interest debentures due January 2027 in both Original Notes and Exchange Notes form as described in Note 9. Those notes are subject to Rule 3-10 of Regulation S-X. Aon Corporation also agreed to guarantee the obligations of Aon plc arising under the 4.45% Notes Due 2043 issued on May 21, 2013. In each case, the guarantee of Aon Corporation is full and unconditional. There are no subsidiaries of Aon plc, other than Aon Corporation, that are guarantors of the 4.250% Notes Due 2042 or the 4.45% Notes Due 2043.
 
The following tables set forth condensed consolidating statements of income for the three and six months ended June 30, 2013 and 2012, condensed consolidating statements of comprehensive income for the three and six months ended June 30, 2013 and 2012, condensed consolidating statements of financial position as of June 30, 2013 and December 31, 2012, and condensed consolidating statements of cash flows for the six months ended June 30, 2013 and 2012 in accordance with Rule 3-10 of Regulation S-X. The condensed consolidating financial information includes the accounts of Aon plc, the accounts of Aon Corporation, and the combined accounts of the non-guarantor subsidiaries. The condensed consolidating financial statements are presented in all periods as a merger under common control, with Aon plc presented as the parent company in all periods prior and subsequent to the Redomestication. The principal consolidating adjustments are to eliminate the investment in subsidiaries and intercompany balances and transactions.

Condensed Consolidating Statement of Income
 
 
 
Three months ended June 30, 2013
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions)
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
Revenue
 
 
 
 
 
 
 
 
 
 
Commissions, fees and other
 
$
1

 
$
—

 
$
2,890

 
$
—

 
$
2,891

Fiduciary investment income
 
—

 
—

 
6

 
—

 
6

Total revenue
 
1

 
—

 
2,896

 
—

 
2,897

 
 
 
 
 
 
 
 
 
 
 
Expenses
 
 
 
 
 
 
 
 
 
 
Compensation and benefits
 
4

 
5

 
1,703

 
—

 
1,712

Other general expenses
 
9

 
17

 
777

 
—

 
803

Total operating expenses
 
13

 
22

 
2,480

 
—

 
2,515

Operating income
 
(12
)
 
(22
)
 
416

 
—

 
382

Interest income
 
—

 
1

 
1

 
—

 
2

Interest expense
 
(4
)
 
(33
)
 
(11
)
 
—

 
(48
)
Intercompany interest (expense) income
 
(7
)
 
43

 
(36
)
 
—

 
—

Other (expense) income
 
—

 
(2
)
 
8

 
—

 
6

(Loss) income from continuing operations before taxes
 
(23
)
 
(13
)
 
378

 
—

 
342

Income tax (benefit) expense
 
(3
)
 
(6
)
 
99

 
—

 
90

(Loss) income from continuing operations
 
(20
)
 
(7
)
 
279

 
—

 
252

 
 
 
 
 
 
 
 
 
 
 
Loss from discontinued operations before taxes
 
—

 
—

 
—

 
—

 
—

Income taxes
 
—

 
—

 
—

 
—

 
—

Loss from discontinued operations
 
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
Equity in earnings of subsidiaries, net of tax
 
261

 
246

 
239

 
(746
)
 
—

 
 
 
 
 
 
 
 
 
 
 
Net income
 
241

 
239

 
518

 
(746
)
 
252

Less: Net income attributable to noncontrolling interests
 
—

 
—

 
11

 
—

 
11

Net income attributable to Aon shareholders
 
$
241

 
$
239

 
$
507

 
$
(746
)
 
$
241



Condensed Consolidating Statement of Income
 
 
 
Three months ended June 30, 2012
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions)
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
Revenue
 
 
 
 
 
 
 
 
 
 
Commissions, fees and other
 
$
—

 
$
—

 
$
2,813

 
$
—

 
$
2,813

Fiduciary investment income
 
—

 
—

 
8

 
—

 
8

Total revenue
 
—

 
—

 
2,821

 
—

 
2,821

 
 
 
 
 
 
 
 
 
 
 
Expenses
 
 
 
 
 
 
 
 
 
 
Compensation and benefits
 
2

 
—

 
1,637

 
—

 
1,639

Other general expenses
 
10

 
7

 
771

 
—

 
788

Total operating expenses
 
12

 
7

 
2,408

 
—

 
2,427

Operating income
 
(12
)
 
(7
)
 
413

 
—

 
394

Interest income
 
—

 
—

 
2

 
—

 
2

Interest expense
 
—

 
(40
)
 
(17
)
 
—

 
(57
)
Intercompany interest (expense) income
 
(3
)
 
47

 
(44
)
 
—

 
—

Other (expense) income
 
—

 
(5
)
 
17

 
—

 
12

(Loss) income from continuing operations before taxes
 
(15
)
 
(5
)
 
371

 
—

 
351

Income tax (benefit) expense
 
(1
)
 
(2
)
 
99

 
—

 
96

(Loss) income from continuing operations
 
(14
)
 
(3
)
 
272

 
—

 
255

 
 
 
 
 
 
 
 
 
 
 
Loss from discontinued operations before taxes
 
—

 
—

 
(1
)
 
—

 
(1
)
Income taxes
 
—

 
—

 
—

 
—

 
—

Loss from discontinued operations
 
—

 
—

 
(1
)
 
—

 
(1
)
 
 
 
 
 
 
 
 
 
 
 
Equity in earnings of subsidiaries, net of tax
 
260

 
234

 
231

 
(725
)
 
—

 
 
 
 
 
 
 
 
 
 
 
Net income
 
246

 
231

 
502

 
(725
)
 
254

Less: Net income attributable to noncontrolling interests
 
—

 
—

 
8

 
—

 
8

Net income attributable to Aon shareholders
 
$
246

 
$
231

 
$
494

 
$
(725
)
 
$
246






Condensed Consolidating Statement of Income
 
 
 
Six months ended June 30, 2013
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions)
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
Revenue
 
 
 
 
 
 
 
 
 
 
Commissions, fees and other
 
$
2

 
$
—

 
$
5,797

 
$
—

 
$
5,799

Fiduciary investment income
 
—

 
—

 
13

 
—

 
13

Total revenue
 
2

 
—

 
5,810

 
—

 
5,812

 
 
 
 
 
 
 
 
 
 
 
Expenses
 
 
 
 
 
 
 
 
 
 
Compensation and benefits
 
15

 
21

 
3,401

 
—

 
3,437

Other general expenses
 
16

 
23

 
1,544

 
—

 
1,583

Total operating expenses
 
31

 
44

 
4,945

 
—

 
5,020

Operating income
 
(29
)
 
(44
)
 
865

 
—

 
792

Interest income
 
—

 
1

 
2

 
—

 
3

Interest expense
 
(6
)
 
(67
)
 
(27
)
 
—

 
(100
)
Intercompany interest (expense) income
 
(14
)
 
86

 
(72
)
 
—

 
—

Other (expense) income
 
—

 
(3
)
 
18

 
—

 
15

(Loss) income from continuing operations before taxes
 
(49
)
 
(27
)
 
786

 
—

 
710

Income tax (benefit) expense
 
(9
)
 
(11
)
 
206

 
—

 
186

(Loss) income from continuing operations
 
(40
)
 
(16
)
 
580

 
—

 
524

 
 
 
 
 
 
 
 
 
 
 
Loss from discontinued operations before taxes
 
—

 
—

 
—

 
—

 
—

Income taxes
 
—

 
—

 
—

 
—

 
—

Loss from discontinued operations
 
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
Equity in earnings of subsidiaries, net of tax
 
542

 
509

 
493

 
(1,544
)
 
—

 
 
 
 
 
 
 
 
 
 
 
Net income
 
502

 
493

 
1,073

 
(1,544
)
 
524

Less: Net income attributable to noncontrolling interests
 
—

 
—

 
22

 
—

 
22

Net income attributable to Aon shareholders
 
$
502

 
$
493

 
$
1,051

 
$
(1,544
)
 
$
502

Condensed Consolidating Statement of Income
 
 
 
Six months ended June 30, 2012
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions)
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
Revenue
 
 
 
 
 
 
 
 
 
 
Commissions, fees and other
 
$
—

 
$
—

 
$
5,642

 
$
—

 
$
5,642

Fiduciary investment income
 
—

 
1

 
19

 
—

 
20

Total revenue
 
—

 
1

 
5,661

 
—

 
5,662

 
 
 
 
 
 
 
 
 
 
 
Expenses
 
 
 
 
 
 
 
 
 
 
Compensation and benefits
 
2

 
67

 
3,231

 
—

 
3,300

Other general expenses
 
10

 
21

 
1,535

 
—

 
1,566

Total operating expenses
 
12

 
88

 
4,766

 
—

 
4,866

Operating income
 
(12
)
 
(87
)
 
895

 
—

 
796

Interest income
 
—

 
—

 
5

 
—

 
5

Interest expense
 
—

 
(80
)
 
(36
)
 
—

 
(116
)
Intercompany interest (expense) income
 
(3
)
 
93

 
(90
)
 
—

 
—

Other (expense) income
 
—

 
3

 
9

 
—

 
12

(Loss) income from continuing operations before taxes
 
(15
)
 
(71
)
 
783

 
—

 
697

Income tax (benefit) expense
 
(1
)
 
(27
)
 
221

 
—

 
193

(Loss) income from continuing operations
 
(14
)
 
(44
)
 
562

 
—

 
504

 
 
 
 
 
 
 
 
 
 
 
Loss from discontinued operations before taxes
 
—

 
—

 
(1
)
 
—

 
(1
)
Income taxes
 
—

 
—

 
—

 
—

 
—

Loss from discontinued operations
 
—

 
—

 
(1
)
 
—

 
(1
)
 
 
 
 
 
 
 
 
 
 
 
Equity in earnings of subsidiaries, net of tax
 
498

 
484

 
440

 
(1,422
)
 
—

 
 
 
 
 
 
 
 
 
 
 
Net income
 
484

 
440

 
1,001

 
(1,422
)
 
503

Less: Net income attributable to noncontrolling interests
 
—

 
—

 
19

 
—

 
19

Net income attributable to Aon shareholders
 
$
484

 
$
440

 
$
982

 
$
(1,422
)
 
$
484


Condensed Consolidating Statement of Comprehensive Income
 
 
 
Three months ended June 30, 2013
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions)
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
Net income
 
$
241

 
$
239

 
$
518

 
$
(746
)
 
$
252

Less: Net income attributable to noncontrolling interests
 
—

 
—

 
11

 
—

 
11

Net income attributable to Aon shareholders
 
$
241

 
$
239

 
$
507

 
$
(746
)
 
$
241

Other comprehensive loss, net of tax:
 
 
 
 
 
 
 
 
 
 
Change in fair value of investments
 
—

 
4

 
9

 
—

 
13

Change in fair value of derivatives
 
—

 
2

 
(9
)
 
—

 
(7
)
Foreign currency translation adjustments
 
—

 
(11
)
 
(47
)
 
—

 
(58
)
Post-retirement benefit obligation
 
—

 
7

 
11

 
—

 
18

Total other comprehensive loss
 
—

 
2

 
(36
)
 
—

 
(34
)
Equity in other comprehensive loss of subsidiaries, net of tax
 
(32
)
 
(34
)
 
(32
)
 
98

 
—

Less: Other comprehensive loss attributable to noncontrolling interests
 
—

 
—

 
(2
)
 
—

 
(2
)
Total other comprehensive loss attributable to Aon shareholders
 
(32
)
 
(32
)
 
(66
)
 
98

 
(32
)
Comprehensive income attributable to Aon shareholders
 
$
209

 
$
207

 
$
441

 
$
(648
)
 
$
209

 
Condensed Consolidating Statement of Comprehensive Income
 
 
 
Three months ended June 30, 2012
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions)
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
Net income
 
$
246

 
$
231

 
$
502

 
$
(725
)
 
$
254

Less: Net income attributable to noncontrolling interests
 
—

 
—

 
8

 
—

 
8

Net income attributable to Aon shareholders
 
$
246

 
$
231

 
$
494

 
$
(725
)
 
$
246

Other comprehensive income, net of tax:
 
 
 
 
 
 
 
 
 
 
Change in fair value of investments
 
—

 
—

 
—

 
—

 
—

Change in fair value of derivatives
 
—

 
—

 
(17
)
 
—

 
(17
)
Foreign currency translation adjustments
 
—

 
(5
)
 
(192
)
 
—

 
(197
)
Post-retirement benefit obligation
 
—

 
9

 
9

 
—

 
18

Total other comprehensive income
 
—

 
4

 
(200
)
 
—

 
(196
)
Equity in other comprehensive income of subsidiaries, net of tax
 
(193
)
 
(193
)
 
(189
)
 
575

 
—

Less: Other comprehensive income attributable to noncontrolling interests
 
—

 
—

 
(3
)
 
—

 
(3
)
Total other comprehensive income attributable to Aon shareholders
 
(193
)
 
(189
)
 
(386
)
 
575

 
(193
)
Comprehensive income attributable to Aon Shareholders
 
$
53

 
$
42

 
$
108

 
$
(150
)
 
$
53



Condensed Consolidating Statement of Comprehensive Income
 
 
 
Six months ended June 30, 2013
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions)
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
Net income
 
$
502

 
$
493

 
$
1,073

 
$
(1,544
)
 
$
524

Less: Net income attributable to noncontrolling interests
 
—

 
—

 
22

 
—

 
22

Net income attributable to Aon shareholders
 
$
502

 
$
493

 
$
1,051

 
$
(1,544
)
 
$
502

Other comprehensive loss, net of tax:
 
 
 
 
 
 
 
 
 
 
Change in fair value of investments
 
—

 
4

 
9

 
—

 
13

Change in fair value of derivatives
 
—

 
3

 
(24
)
 
—

 
(21
)
Foreign currency translation adjustments
 
—

 
(19
)
 
(213
)
 
—

 
(232
)
Post-retirement benefit obligation
 
—

 
15

 
26

 
—

 
41

Total other comprehensive loss
 
—

 
3

 
(202
)
 
—

 
(199
)
Equity in other comprehensive loss of subsidiaries, net of tax
 
(197
)
 
(200
)
 
(197
)
 
594

 
—

Less: Other comprehensive loss attributable to noncontrolling interests
 
—

 
—

 
(2
)
 
—

 
(2
)
Total other comprehensive loss attributable to Aon shareholders
 
(197
)
 
(197
)
 
(397
)
 
594

 
(197
)
Comprehensive income attributable to Aon shareholders
 
$
305

 
$
296

 
$
654

 
$
(950
)
 
$
305

 
Condensed Consolidating Statement of Comprehensive Income
 
 
 
Six months ended June 30, 2012
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions)
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
Net income
 
$
484

 
$
440

 
$
1,001

 
$
(1,422
)
 
$
503

Less: Net income attributable to noncontrolling interests
 
—

 
—

 
19

 
—

 
19

Net income attributable to Aon shareholders
 
$
484

 
$
440

 
$
982

 
$
(1,422
)
 
$
484

Other comprehensive income, net of tax:
 
 
 
 
 
 
 
 
 
 
Change in fair value of investments
 
—

 
—

 
—

 
—

 
—

Change in fair value of derivatives
 
—

 
—

 
(10
)
 
—

 
(10
)
Foreign currency translation adjustments
 
—

 
(1
)
 
(92
)
 
—

 
(93
)
Post-retirement benefit obligation
 
—

 
15

 
24

 
—

 
39

Total other comprehensive income
 
—

 
14

 
(78
)
 
—

 
(64
)
Equity in other comprehensive income of subsidiaries, net of tax
 
(62
)
 
(77
)
 
(63
)
 
202

 
—

Less: Other comprehensive income attributable to noncontrolling interests
 
—

 
—

 
(2
)
 
—

 
(2
)
Total other comprehensive income attributable to Aon shareholders
 
(62
)
 
(63
)
 
(139
)
 
202

 
(62
)
Comprehensive income attributable to Aon Shareholders
 
$
422

 
$
377

 
$
843

 
$
(1,220
)
 
$
422



Condensed Consolidating Statement of Financial Position
 
 
 
As of June 30, 2013
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions)
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
ASSETS
 
 

 
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
294

 
$
258

 
$
—

 
$
(286
)
 
$
266

Short-term investments
 
—

 
63

 
244

 
—

 
307

Receivables, net
 
—

 
(2
)
 
2,840

 
—

 
2,838

Fiduciary assets
 
—

 
—

 
12,576

 
—

 
12,576

Intercompany receivables
 
255

 
2,881

 
5,244

 
(8,380
)
 
—

Other current assets
 
17

 
50

 
339

 
—

 
406

Total Current Assets
 
566

 
3,250

 
21,243

 
(8,666
)
 
16,393

Goodwill
 
—

 
—

 
8,795

 
—

 
8,795

Intangible assets, net
 
—

 
—

 
2,736

 
—

 
2,736

Fixed assets, net
 
—

 
—

 
808

 
—

 
808

Investments
 
—

 
60

 
112

 
—

 
172

Intercompany receivables
 
166

 
2,093

 
2,196

 
(4,455
)
 
—

Other non-current assets
 
119

 
739

 
403

 
(103
)
 
1,158

Investment in subsidiary
 
10,879

 
11,057

 
8,716

 
(30,652
)
 
—

TOTAL ASSETS
 
$
11,730

 
$
17,199

 
$
45,009

 
$
(43,876
)
 
$
30,062

 
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 

 
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
Fiduciary liabilities
 
$
—

 
$
—

 
$
12,576

 
$
—

 
$
12,576

Short-term debt and current portion of long-term debt
 
297

 
107

 
23

 
—

 
427

Accounts payable and accrued liabilities
 
17

 
65

 
1,627

 
(286
)
 
1,423

Intercompany payables
 
14

 
4,112

 
2,961

 
(7,087
)
 
—

Other current liabilities
 
1

 
47

 
721

 
—

 
769

Total Current Liabilities
 
329

 
4,331

 
17,908

 
(7,373
)
 
15,195

Long-term debt
 
443

 
2,515

 
1,054

 
—

 
4,012

Pension, other post-retirement and other post-employment liabilities
 
—

 
1,220

 
677

 
—

 
1,897

Intercompany payables
 
3,393

 
166

 
2,189

 
(5,748
)
 
—

Other non-current liabilities
 
6

 
251

 
1,186

 
(103
)
 
1,340

TOTAL LIABILITIES
 
4,171

 
8,483

 
23,014

 
(13,224
)
 
22,444

 
 
 
 
 
 
 
 
 
 
 
TOTAL AON SHAREHOLDERS’ EQUITY
 
7,559

 
8,716

 
21,936

 
(30,652
)
 
7,559

Noncontrolling interests
 
—

 
—

 
59

 
—

 
59

TOTAL EQUITY
 
7,559

 
8,716

 
21,995

 
(30,652
)
 
7,618

 
 
 
 
 
 
 
 
 
 
 
TOTAL LIABILITIES AND EQUITY
 
$
11,730

 
$
17,199

 
$
45,009

 
$
(43,876
)
 
$
30,062


Condensed Consolidating Statement of Financial Position
 
 
 
As of December 31, 2012
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions)
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
ASSETS
 
 

 
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
131

 
$
199

 
$
—

 
$
(39
)
 
$
291

Short-term investments
 
—

 
89

 
257

 
—

 
346

Receivables, net
 
5

 
1

 
3,095

 
—

 
3,101

Fiduciary assets
 
—

 
—

 
12,214

 
—

 
12,214

Intercompany receivables
 
—

 
2,092

 
3,545

 
(5,637
)
 
—

Other current assets
 
7

 
53

 
370

 
—

 
430

Total Current Assets
 
143

 
2,434

 
19,481

 
(5,676
)
 
16,382

Goodwill
 
—

 
—

 
8,943

 
—

 
8,943

Intangible assets, net
 
—

 
—

 
2,975

 
—

 
2,975

Fixed assets, net
 
—

 
—

 
820

 
—

 
820

Investments
 
—

 
49

 
116

 
—

 
165

Intercompany receivables
 
166

 
1,997

 
2,350

 
(4,513
)
 
—

Other non-current assets
 
117

 
735

 
1,174

 
(825
)
 
1,201

Investment in subsidiary
 
10,398

 
10,522

 
8,322

 
(29,242
)
 
—

TOTAL ASSETS
 
$
10,824

 
$
15,737

 
$
44,181

 
$
(40,256
)
 
$
30,486

 
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 

 
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
Fiduciary liabilities
 
$
—

 
$
—

 
$
12,214

 
$
—

 
$
12,214

Short-term debt and current portion of long-term debt
 
—

 
429

 
23

 
—

 
452

Accounts payable and accrued liabilities
 
10

 
71

 
1,811

 
(39
)
 
1,853

Intercompany payables
 
51

 
2,637

 
2,162

 
(4,850
)
 
—

Other current liabilities
 
—

 
49

 
779

 
3

 
831

Total Current Liabilities
 
61

 
3,186

 
16,989

 
(4,886
)
 
15,350

Long-term debt
 
107

 
2,515

 
1,091

 
—

 
3,713

Pension, other post-retirement and other post-employment liabilities
 
—

 
1,294

 
982

 
—

 
2,276

Intercompany payables
 
2,890

 
166

 
2,247

 
(5,303
)
 
—

Other non-current liabilities
 
4

 
254

 
1,909

 
(825
)
 
1,342

TOTAL LIABILITIES
 
3,062

 
7,415

 
23,218

 
(11,014
)
 
22,681

 
 
 
 
 
 
 
 
 
 
 
TOTAL AON SHAREHOLDERS’ EQUITY
 
7,762

 
8,322

 
20,920

 
(29,242
)
 
7,762

Noncontrolling interests
 
—

 
—

 
43

 
—

 
43

TOTAL EQUITY
 
7,762

 
8,322

 
20,963

 
(29,242
)
 
7,805

 
 
 
 
 
 
 
 
 
 
 
TOTAL LIABILITIES AND EQUITY
 
$
10,824

 
$
15,737

 
$
44,181

 
$
(40,256
)
 
$
30,486


Condensed Consolidating Statement of Cash Flows
 
 
 
Six months ended June 30, 2013
 
 
Aon
 
Aon
 
Other
Non-Guarantor
 
Consolidating
 
 
(millions)
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES
 
 

 
 

 
 

 
 

 
 

CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES
 
$
(23
)
 
$
(89
)
 
$
499

 
$
—

 
$
387

 
 
 
 
 
 
 
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES
 
 
 
 
 
 
 
 
 
 
Sales of long-term investments
 
—

 
2

 
21

 
—

 
23

Purchase of long-term investments
 
—

 
(6
)
 
—

 
—

 
(6
)
Net (purchases) sales of short-term investments - non-fiduciary
 
—

 
26

 
3

 
—

 
29

Acquisition of businesses, net of cash acquired
 
—

 
—

 
(23
)
 
—

 
(23
)
Proceeds from sale of businesses
 
—

 
—

 
1

 
—

 
1

Capital expenditures
 
—

 
—

 
(122
)
 
—

 
(122
)
CASH USED FOR INVESTING ACTIVITIES
 
—

 
22

 
(120
)
 
—

 
(98
)
 
 
 
 
 
 
 
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES
 
 
 
 
 
 
 
 
 
 
Share repurchase
 
(525
)
 
—

 
—

 
—

 
(525
)
Advances from (to) affiliates
 
126

 
444

 
(323
)
 
(247
)
 
—

Issuance of shares for employee benefit plans
 
57

 
—

 
—

 
—

 
57

Issuance of debt
 
639

 
2,044

 
231

 
—

 
2,914

Repayment of debt
 
(6
)
 
(2,362
)
 
(239
)
 
—

 
(2,607
)
Cash dividends to shareholders
 
(105
)
 
—

 
—

 
—

 
(105
)
Purchase of shares from noncontrolling interests
 
—

 
—

 
—

 
—

 
—

Dividends paid to noncontrolling interests
 
—

 
—

 
(6
)
 
—

 
(6
)
CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES
 
186

 
126

 
(337
)
 
(247
)
 
(272
)
 
 
 
 
 
 
 
 
 
 
 
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
 
—

 
—

 
(42
)
 
—

 
(42
)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
 
163

 
59

 
—

 
(247
)
 
(25
)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
 
131

 
199

 
—

 
(39
)
 
291

CASH AND CASH EQUIVALENTS AT END OF PERIOD
 
$
294

 
$
258

 
$
—

 
$
(286
)
 
$
266


Condensed Consolidating Statement of Cash Flows
 
 
 
Six months ended June 30, 2012
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions) 
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES
 
 

 
 

 
 

 
 

 
 

CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES
 
$
(19
)
 
$
(99
)
 
$
387

 
$
—

 
$
269

 
 
 
 
 
 
 
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES
 
 
 
 
 
 
 
 
 
 
Sales of long-term investments
 
—

 
—

 
51

 
—

 
51

Purchase of long-term investments
 
—

 
(7
)
 
—

 
—

 
(7
)
Net (purchases) sales of short-term investments - non-fiduciary
 
—

 
211

 
48

 
—

 
259

Acquisition of businesses, net of cash acquired
 
—

 
(55
)
 
(27
)
 
—

 
(82
)
Proceeds from sale of businesses
 
—

 
—

 
1

 
—

 
1

Capital expenditures
 
—

 
—

 
(129
)
 
—

 
(129
)
CASH USED FOR INVESTING ACTIVITIES
 
—

 
149

 
(56
)
 
—

 
93

 
 
 
 
 
 
 
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES
 
 
 
 
 
 
 
 
 
 
Share repurchase
 
(250
)
 
(100
)
 
—

 
—

 
(350
)
Advances from (to) affiliates
 
325

 
118

 
(443
)
 
—

 
—

Issuance of shares for employee benefit plans
 
15

 
49

 
—

 
—

 
64

Issuance of debt
 
—

 
332

 
—

 
—

 
332

Repayment of debt
 
—

 
(298
)
 
(7
)
 
—

 
(305
)
Cash dividends to shareholders
 
(52
)
 
(50
)
 
—

 
—

 
(102
)
Purchase of shares from noncontrolling interests
 
—

 
—

 
1

 
—

 
1

Dividends paid to noncontrolling interests
 
—

 
—

 
(6
)
 
—

 
(6
)
CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES
 
38

 
51

 
(455
)
 
—

 
(366
)
 
 
 
 
 
 
 
 
 
 
 
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
 
—

 
—

 
18

 
—

 
18

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
 
19

 
101

 
(106
)
 
—

 
14

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
 
—

 
(21
)
 
293

 
—

 
272

CASH AND CASH EQUIVALENTS AT END OF PERIOD
 
$
19

 
$
80

 
$
187

 
$
—

 
$
286


 
In July 2013, Aon Holdings LLC, an intermediate holding company and the direct parent of Aon Corporation, transferred its ownership of Aon Corporation to Aon plc via distribution. The financial results of Aon Holdings LLC are included in the Other Non-Guarantor Subsidiaries column of the Condensed Consolidating Financial Statements. In addition to the disclosures required for Rule 3-10 of Regulation S-X under the legal entity structure that existed as of June 30, 2013, the Company has also included the following pro forma disclosures reflecting the transfer of Aon Corporation from Aon Holdings LLC to Aon plc below for all periods presented. Only the portions of the Condensed Consolidating Financial Statements impacted by this change have been presented.

Condensed Consolidating Statement of Income
 
 
Three months ended June 30, 2013
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions) 
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
(Loss) income from continuing operations
 
$
(20
)
 
$
(7
)
 
$
279

 
$
—

 
$
252

Loss from discontinued operations
 
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
Equity in earnings of subsidiaries, net of tax
 
261

 
246

 
—

 
(507
)
 
—

 
 
 
 
 
 
 
 
 
 
 
Net income
 
241

 
239

 
279

 
(507
)
 
252

Less: Net income attributable to noncontrolling interests
 
—

 
—

 
11

 
—

 
11

Net income attributable to Aon shareholders
 
$
241

 
$
239

 
$
268

 
$
(507
)
 
$
241


Condensed Consolidating Statement of Income
 
 
Three months ended June 30, 2012
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions)
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
(Loss) income from continuing operations
 
$
(14
)
 
$
(3
)
 
$
272

 
$
—

 
$
255

Loss from discontinued operations
 
—

 
—

 
(1
)
 
—

 
(1
)
 
 
 
 
 
 
 
 
 
 
 
Equity in earnings of subsidiaries, net of tax
 
260

 
234

 
—

 
(494
)
 
—

 
 
 
 
 
 
 
 
 
 
 
Net income
 
246

 
231

 
271

 
(494
)
 
254

Less: Net income attributable to noncontrolling interests
 
—

 
—

 
8

 
—

 
8

Net income attributable to Aon shareholders
 
$
246

 
$
231

 
$
263

 
$
(494
)
 
$
246


Condensed Consolidating Statement of Income
 
 
Six months ended June 30, 2013
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions)
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
(Loss) income from continuing operations
 
$
(40
)
 
$
(16
)
 
$
580

 
$
—

 
$
524

Loss from discontinued operations
 
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
Equity in earnings of subsidiaries, net of tax
 
542

 
509

 
—

 
(1,051
)
 
—

 
 
 
 
 
 
 
 
 
 
 
Net income
 
502

 
493

 
580

 
(1,051
)
 
524

Less: Net income attributable to noncontrolling interests
 
—

 
—

 
22

 
—

 
22

Net income attributable to Aon shareholders
 
$
502

 
$
493

 
$
558

 
$
(1,051
)
 
$
502


Condensed Consolidating Statement of Income
 
 
Six months ended June 30, 2012
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions)
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
(Loss) income from continuing operations
 
$
(14
)
 
$
(44
)
 
$
562

 
$
—

 
$
504

Loss from discontinued operations
 
—

 
—

 
(1
)
 
—

 
(1
)
 
 
 
 
 
 
 
 
 
 
 
Equity in earnings of subsidiaries, net of tax
 
498

 
484

 
—

 
(982
)
 
—

 
 
 
 
 
 
 
 
 
 
 
Net income
 
484

 
440

 
561

 
(982
)
 
503

Less: Net income attributable to noncontrolling interests
 
—

 
—

 
19

 
—

 
19

Net income attributable to Aon shareholders
 
$
484

 
$
440

 
$
542

 
$
(982
)
 
$
484



Condensed Consolidating Statement of Comprehensive Income
 
 
Three months ended June 30, 2013
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions) 
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
Net income attributable to Aon shareholders
 
$
241

 
$
239

 
$
268

 
$
(507
)
 
$
241

Total other comprehensive loss
 
—

 
2

 
(36
)
 
—

 
(34
)
 
 
 
 
 
 
 
 
 
 
 
Equity in other comprehensive loss of subsidiaries, net of tax
 
(32
)
 
(34
)
 
—

 
66

 
—

Less: Other comprehensive loss attributable to noncontrolling interests
 
—

 
—

 
(2
)
 
—

 
(2
)
Total other comprehensive loss attributable to Aon shareholders
 
(32
)
 
(32
)
 
(34
)
 
66

 
(32
)
Comprehensive income attributable to Aon shareholders
 
$
209

 
$
207

 
$
234

 
$
(441
)
 
$
209


Condensed Consolidating Statement of Comprehensive Income
 
 
Three months ended June 30, 2012
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions) 
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
Net income attributable to Aon shareholders
 
$
246

 
$
231

 
$
263

 
$
(494
)
 
$
246

Total other comprehensive income
 
—

 
4

 
(200
)
 
—

 
(196
)
 
 
 
 
 
 
 
 
 
 
 
Equity in other comprehensive loss of subsidiaries, net of tax
 
(193
)
 
(193
)
 
—

 
386

 
—

Less: Other comprehensive loss attributable to noncontrolling interests
 
—

 
—

 
(3
)
 
—

 
(3
)
Total other comprehensive loss attributable to Aon shareholders
 
(193
)
 
(189
)
 
(197
)
 
386

 
(193
)
Comprehensive income attributable to Aon shareholders
 
$
53

 
$
42

 
$
66

 
$
(108
)
 
$
53


Condensed Consolidating Statement of Comprehensive Income
 
 
Six months ended June 30, 2013
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions) 
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
Net income attributable to Aon shareholders
 
$
502

 
$
493

 
$
558

 
$
(1,051
)
 
$
502

Total other comprehensive loss
 
—

 
3

 
(202
)
 
—

 
(199
)
 
 
 
 
 
 
 
 
 
 
 
Equity in other comprehensive loss of subsidiaries, net of tax
 
(197
)
 
(200
)
 
—

 
397

 
—

Less: Other comprehensive loss attributable to noncontrolling interests
 
—

 
—

 
(2
)
 
—

 
(2
)
Total other comprehensive loss attributable to Aon shareholders
 
(197
)
 
(197
)
 
(200
)
 
397

 
(197
)
Comprehensive income attributable to Aon shareholders
 
$
305

 
$
296

 
$
358

 
$
(654
)
 
$
305


Condensed Consolidating Statement of Comprehensive Income
 
 
Six months ended June 30, 2012
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions) 
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
Net income attributable to Aon shareholders
 
$
484

 
$
440

 
$
542

 
$
(982
)
 
$
484

Total other comprehensive loss
 
—

 
14

 
(78
)
 
—

 
(64
)
 
 
 
 
 
 
 
 
 
 
 
Equity in other comprehensive loss of subsidiaries, net of tax
 
(62
)
 
(77
)
 
—

 
139

 
—

Less: Other comprehensive loss attributable to noncontrolling interests
 
—

 
—

 
(2
)
 
—

 
(2
)
Total other comprehensive loss attributable to Aon shareholders
 
(62
)
 
(63
)
 
(76
)
 
139

 
(62
)
Comprehensive income attributable to Aon shareholders
 
$
422

 
$
373

 
$
466

 
$
(843
)
 
$
418



Condensed Consolidating Statement of Financial Position
 
 
As of June 30, 2013
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions)
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
 
Investment in subsidiary
 
$
10,879

 
$
11,057

 
$
—

 
$
(21,936
)
 
$
—

 
 
 
 
 
 
 
 
 
 
 
TOTAL AON SHAREHOLDERS’ EQUITY
 
7,559

 
8,716

 
13,220

 
(21,936
)
 
7,559


Condensed Consolidating Statement of Financial Position
 
 
December 31, 2012
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions)
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
 
Investment in subsidiary
 
$
10,398

 
$
10,522

 
$
—

 
$
(20,920
)
 
$
—

 
 
 
 
 
 
 
 
 
 
 
TOTAL AON SHAREHOLDERS’ EQUITY
 
7,762

 
8,322

 
12,598

 
(20,920
)
 
7,762

Other Income (Tables)
Other Income
Other income consists of the following (in millions):
 
Three months ended
June 30,
 
Six months ended
June 30,
 
2013
 
2012
 
2013
 
2012
Equity earnings
$
4

 
$
3

 
$
6

 
$
8

Realized (loss) gain on sale of investments
(2
)
 
(8
)
 
(1
)
 
2

Foreign currency remeasurement (losses) gains
(5
)
 
18

 
19

 
—

Derivative gains (losses)
9

 
(2
)
 
(9
)
 
—

Other
—

 
1

 
—

 
2

 
$
6

 
$
12

 
$
15

 
$
12

Acquisitions and Dispositions (Tables)
Consideration transferred and preliminary value of intangible assets
The following table includes the aggregate consideration transferred and the preliminary value of intangible assets recorded as a result of the Company’s acquisitions:
 
 
Six months ended June 30,
(millions)
 
2013
 
2012
Consideration
 
$
23

 
$
96

Intangible assets:
 
 

 
 

Goodwill
 
$
16

 
$
57

Other intangible assets
 
11

 
42

     Total
 
$
27

 
$
99

Goodwill and Other Intangible Assets (Tables)
Schedule of changes in the net carrying amount of goodwill by operating segment 
The change in the net carrying amount of goodwill by reportable segment for the six months ended June 30, 2013 is as follows (in millions):
 
Risk
Solutions
 
HR
Solutions
 
Total
Balance as of December 31, 2012
$
5,982

 
$
2,961

 
$
8,943

Goodwill related to current year acquisitions
14

 
2

 
16

Goodwill related to prior year acquisitions
(2
)
 
17

 
15

Foreign currency translation
(157
)
 
(22
)
 
(179
)
Balance as of June 30, 2013
$
5,837

 
$
2,958

 
$
8,795


Schedule of other intangible assets by asset class 
Other intangible assets by asset class are as follows (in millions):
 
June 30, 2013
 
December 31, 2012
 
Gross Carrying Amount
 
Accumulated
Amortization
 
Net Carrying Amount
 
Gross Carrying Amount
 
Accumulated
Amortization
 
Net Carrying Amount
Intangible assets with indefinite lives:
 

 
 

 
 

 
 

 
 

 
 

Tradenames
$
1,025

 
$
—

 
$
1,025

 
$
1,025

 
$
—

 
$
1,025

 
 
 
 
 
 
 
 
 
 
 
 
Intangible assets with finite lives:
 

 
 

 
 

 
 

 
 

 
 

Customer related and contract based
2,659

 
1,124

 
1,535

 
2,714

 
969

 
1,745

Marketing, technology and other (1)
600

 
424

 
176

 
619

 
414

 
205

 
$
4,284

 
$
1,548

 
$
2,736

 
$
4,358

 
$
1,383

 
$
2,975


 ______________________________________________
(1) Tradenames with finite lives disclosed separately in prior years are now presented in Marketing, technology and other
Schedule of estimated future amortization expense on intangible assets 
The estimated future amortization for finite lived intangible assets as of June 30, 2013 is as follows (in millions):
 
HR Solutions
 
Risk Solutions
 
Total
Remainder of 2013
$
139

 
$
55

 
$
194

2014
240

 
94

 
334

2015
209

 
79

 
288

2016
175

 
67

 
242

2017
139

 
57

 
196

Thereafter
338

 
119

 
457

 
$
1,240

 
$
471

 
$
1,711

Restructuring (Tables)
Schedule of changes in company's liabilities for its restructuring plans 
As of June 30, 2013, the Company’s liabilities for its restructuring plans are as follows (in millions):
 
Aon Hewitt Plan
 
Aon Benfield Plan
 
2007 Plan
 
Other
 
Total
Balance at December 31, 2012
$
96

 
$
3

 
$
35

 
$
3

 
$
137

Expensed
76

 
—

 
—

 
—

 
76

Cash payments
(58
)
 
(1
)
 
(18
)
 
(1
)
 
(78
)
Foreign exchange translation and other
—

 
—

 
4

 
—

 
4

Balance at June 30, 2013
$
114

 
$
2

 
$
21

 
$
2

 
$
139

Schedule of restructuring and related expenses by type 
The following table summarizes restructuring and related costs by type that have been incurred and are estimated to be incurred through the end of the restructuring initiative related to the Aon Hewitt Plan (in millions):
 
2010
 
2011
 
2012
 
Second Quarter 2013
 
Six Months 2013
 
Total to Date
 
Estimated Total Cost for Restructuring Plan (1)
Workforce reduction
$
49

 
$
64

 
$
74

 
$
14

 
$
38

 
$
225

 
$
261

Lease consolidation
3

 
32

 
18

 
34

 
36

 
89

 
128

Asset impairments
—

 
7

 
4

 
3

 
3

 
14

 
15

Other costs associated with restructuring (2)
—

 
2

 
2

 
2

 
2

 
6

 
7

Total restructuring expenses
$
52

 
$
105

 
$
98

 
$
53

 
$
79

 
$
334

 
$
411

 ______________________________________________
(1)
Actual costs, when incurred, will vary due to changes in the assumptions built into this plan.  Significant assumptions that may change when plans are finalized and implemented include, but are not limited to, changes in severance calculations, changes in the assumptions underlying sublease loss calculations due to changing market conditions, and changes in the overall analysis that might cause the Company to add or cancel component initiatives.
(2)
Other costs associated with restructuring initiatives, including moving costs and consulting and legal fees, are recognized when incurred.
Schedule of restructuring and related expenses by type 
The following table summarizes the restructuring and related expenses, by segment, that have been incurred and are estimated to be incurred through the end of the restructuring initiative related to the Aon Hewitt Plan (in millions):
 
2010
 
2011
 
2012
 
Second Quarter 2013
 
Six Months 2013
 
Total to Date
 
Estimated Total Cost for Restructuring Plan (1)
HR Solutions
$
52

 
$
49

 
$
66

 
$
36

 
51

 
$
218

 
$
249

Risk Solutions
—

 
56

 
32

 
17

 
28

 
116

 
162

Total restructuring expenses (1)
$
52

 
$
105

 
$
98

 
$
53

 
$
79

 
$
334

 
$
411

______________________________________________
(1) Costs included in the Risk Solutions segment are associated with the transfer of the health and benefits consulting business from HR Solutions to Risk Solutions effective January 1, 2012. Costs incurred in 2011 in the HR Solutions segment of $41 million related to the health and benefits consulting business have been reclassified and presented in the Risk Solutions segment.
Investments (Tables)
Schedule of interest bearing assets 
The Company’s interest-bearing assets and other investments are included in the following categories in the Condensed Consolidated Statements of Financial Position (in millions):
 
6/30/2013
 
12/31/2012
Cash and cash equivalents
$
266

 
$
291

Short-term investments
307

 
346

Fiduciary assets (1)
4,089

 
4,029

Investments
172

 
165

 
$
4,834

 
$
4,831

  ______________________________________________
(1)
Fiduciary assets include funds held on behalf of clients but does not include fiduciary receivables.
Schedule of investments 
The Company’s investments are as follows (in millions):
 
6/30/2013
 
12/31/2012
Equity method investments
$
94

 
$
102

Other investments
53

 
43

Fixed-maturity securities
25

 
20

 
$
172

 
$
165

Shareholders' Equity (Tables)
Schedule of Net Income from Participating Securities 
Income from continuing operations, income from discontinued operations and net income, attributable to participating securities, were as follows (in millions):
 
Three months ended
June 30,
 
Six months ended
June 30,
 
2013
 
2012
 
2013
 
2012
Income from continuing operations
$
2

 
$
3

 
$
5

 
$
6

Income from discontinued operations
—

 
—

 
—

 
—

Net income
$
2

 
$
3

 
$
5

 
$
6

Schedule of components of weighted average number of shares 
Weighted average shares outstanding are as follows (in millions):
 
 
Three months ended
June 30,
 
Six months ended
June 30,
 
2013
 
2012
 
2013
 
2012
Shares for basic earnings per share (1) 
313.7

 
332.0

 
315.0

 
332.2

Common stock equivalents
3.4

 
3.6

 
3.6

 
3.9

Shares for diluted earnings per share
317.1

 
335.6

 
318.6

 
336.1

   ______________________________________________
(1)    Includes 4.0 million and 4.8 million of participating securities for the three months ended June 30, 2013 and 2012, respectively
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):
 
Change in Fair Value of Investments (1)
 
Change in Fair Value of Derivatives (1)
 
Foreign Currency Translation Adjustments
 
Post-Retirement Benefit Obligation (2)
 
Total
Balance at December 31, 2012
$
—

 
$
(28
)
 
$
233

 
$
(2,815
)
 
$
(2,610
)
Other comprehensive loss before reclassifications, net
13

 
(30
)
 
(232
)
 
(4
)
 
(253
)
Amounts reclassified from accumulated other comprehensive loss:
 
 


 


 


 


Amounts reclassified from accumulated other comprehensive loss
—

 
16

 
—

 
66

 
82

Tax benefit
—

 
(7
)
 
—

 
(21
)
 
(28
)
Amounts reclassified from accumulated other comprehensive loss, net
—

 
9

 
—

 
45

 
54

Net current period other comprehensive (loss) income
13

 
(21
)
 
(232
)
 
41

 
(199
)
Balance at June 30, 2013
$
13

 
$
(49
)
 
$
1

 
$
(2,774
)
 
$
(2,809
)
______________________________________________
(1) Reclassifications from Accumulated other comprehensive loss are recorded in Other income
(2) Reclassifications from Accumulated other comprehensive loss are recorded in Compensation and benefits
Employee Benefits (Tables)
Components of net periodic benefit cost for the pension plans
The following table provides the components of the net periodic benefit cost for Aon’s U.S. pension plans, along with its most significant international pension plans, which are located in the U.K., the Netherlands and Canada (in millions):
 
Three months ended June 30,
 
U.K. and Non-U.S.
 
U.S.
 
2013
 
2012
 
2013
 
2012
Service cost
$
4

 
$
4

 
$
—

 
$
—

Interest cost
62

 
66

 
28

 
30

Expected return on plan assets
(88
)
 
(81
)
 
(35
)
 
(32
)
Amortization of net actuarial loss
19

 
15

 
13

 
11

Net periodic benefit cost
$
(3
)
 
$
4

 
$
6

 
$
9



 
Six months ended June 30,
 
U.K. and Non-U.S.
 
U.S.
 
2013
 
2012
 
2013
 
2012
Service cost
$
9

 
$
8

 
$
—

 
$
—

Interest cost
126

 
132

 
56

 
60

Expected return on plan assets
(178
)
 
(161
)
 
(69
)
 
(64
)
Amortization of net actuarial loss
37

 
29

 
26

 
22

Net periodic benefit cost
$
(6
)
 
$
8

 
$
13

 
$
18

Share-Based Compensation Plans (Tables)
Share-based compensation expense recognized in continuing operations 
The following table summarizes share-based compensation expense recognized in the Condensed Consolidated Statements of Income in Compensation and benefits (in millions):
 
Three months ended
June 30,
 
Six months ended
June 30,
 
2013
 
2012
 
2013
 
2012
Restricted stock units (“RSUs”)
$
40

 
$
34

 
$
95

 
$
83

Performance share awards (“PSAs”)
27

 
13

 
38

 
15

Stock options
—

 
1

 
1

 
3

Employee stock purchase plans
1

 
2

 
3

 
4

Total stock-based compensation expense
$
68

 
$
50

 
$
137

 
$
105

Restricted share unit activity 
A summary of the status of the Company’s RSUs is as follows (shares in thousands):
 
Six months ended June 30,
 
2013
 
2012
 
Shares
 
Fair Value (1)
 
Shares
 
Fair Value (1)
Non-vested at beginning of period
10,432

 
$
44

 
9,916

 
$
42

Granted
3,505

 
62

 
4,706

 
45

Vested
(3,345
)
 
44

 
(2,986
)
 
42

Forfeited
(229
)
 
45

 
(356
)
 
44

Non-vested at end of period
10,363

 
50

 
11,280

 
44

 ______________________________________________
(1)
Represents per share weighted average fair value of award at date of grant
Performance-based plans 
Information as of June 30, 2013 regarding the Company’s target PSAs granted and shares that would be issued at current performance levels for PSAs granted during the six months ended June 30, 2013 and the years ended December 31, 2012 and 2011, respectively, is as follows (shares in thousands, dollars in millions, except fair value):
 
As of June 30, 2013
 
As of December
31, 2012

 
As of December
31, 2011

Target PSAs granted
1,135

 
1,369

 
1,715

Fair value (1)
$
58

 
$
47

 
$
50

Number of shares that would be issued based on current performance levels
1,135

 
1,958

 
1,339

Unamortized expense, based on current performance levels
$
59

 
$
49

 
$
11

 ______________________________________________
(1)
Represents per share weighted average fair value of award at date of grant.
Share options and related information 
A summary of the status of the Company’s share options and related information is as follows (shares in thousands):
 
Six months ended June 30,
 
2013
 
2012
 
Shares
 
Weighted- Average
Exercise Price
 
Shares
 
Weighted- Average
Exercise Price
Beginning outstanding
5,611

 
$
32

 
9,116

 
$
32

Granted
—

 
—

 
—

 
—

Exercised
(1,318
)
 
31

 
(1,584
)
 
33

Forfeited and expired
(2
)
 
33

 
(51
)
 
37

Outstanding at end of period
4,291

 
33

 
7,481

 
32

Exercisable at end of period
4,063

 
32

 
6,931

 
31

Other information related to the company's share options 
Other information related to the Company’s share options is as follows (in millions):
 
Three months ended
June 30,
 
Six months ended
June 30,
 
2013
 
2012
 
2013
 
2012
Aggregate intrinsic value of stock options exercised
$
22

 
$
11

 
$
39

 
$
24

Cash received from the exercise of stock options
21

 
14

 
41

 
51

Tax benefit realized from the exercise of stock options
4

 
1

 
7

 
2

Derivatives and Hedging (Tables)
Notional and fair values of derivative instruments 
The notional and fair values of derivative instruments are as follows (in millions):
 
Notional Amount
 
Derivative Assets
 
Derivative Liabilities
 
6/30/2013
 
12/31/2012
 
6/30/2013
 
12/31/2012
 
6/30/2013
 
12/31/2012
Derivatives accounted for as hedges:
 

 
 

 
 

 
 

 
 

 
 

Interest rate contracts
$
325

 
$
336

 
$
16

 
$
17

 
$
—

 
$
—

Foreign exchange contracts
1,072

 
1,208

 
39

 
191

 
110

 
250

Total
1,397

 
1,544

 
55

 
208

 
110

 
250

Derivatives not accounted for as hedges:
 

 
 

 
 

 
 

 
 

 
 

Foreign exchange contracts
295

 
305

 
1

 
2

 
1

 
1

   Total
$
1,692

 
$
1,849

 
$
56

 
$
210

 
$
111

 
$
251

 
Offsetting of financial assets and derivatives assets are as follows (in millions):
 
Gross Amounts of Recognized Assets
 
Gross Amounts Offset in the Statement of Financial Position
 
Net Amounts of Assets Presented in the Statement of Financial Position (1)
 
6/30/2013
 
12/31/2012
 
6/30/2013
 
12/31/2012
 
6/30/2013
 
12/31/2012
Derivatives accounted for as hedges:
 

 
 

 
 

 
 

 
 

 
 

Interest rate contracts
$
16

 
$
17

 
$
—

 
$
—

 
$
16

 
$
17

Foreign exchange contracts
39

 
191

 
(20
)
 
(160
)
 
19

 
31

Total
55

 
208

 
(20
)
 
(160
)
 
35

 
48

Derivatives not accounted for as hedges:
 

 
 

 
 

 
 

 
 

 
 

Foreign exchange contracts
1

 
2

 
—

 
—

 
1

 
2

   Total
$
56

 
$
210

 
$
(20
)
 
$
(160
)
 
$
36

 
$
50

______________________________________________
(1) Included within Other current assets or Other non-current assets

Offsetting of financial liabilities and derivative liabilities are as follows (in millions):
 
Gross Amounts of Recognized Liabilities
 
Gross Amounts Offset in the Statement of Financial Position
 
Net Amounts of Liabilities Presented in the Statement of Financial Position (2)
 
6/30/2013
 
12/31/2012
 
6/30/2013
 
12/31/2012
 
6/30/2013
 
12/31/2012
Derivatives accounted for as hedges:
 

 
 

 
 

 
 

 
 

 
 

Interest rate contracts
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Foreign exchange contracts
110

 
250

 
(20
)
 
(160
)
 
90

 
90

Total
110

 
250

 
(20
)
 
(160
)
 
90

 
90

Derivatives not accounted for as hedges:
 

 
 

 
 

 
 

 
 

 
 

Foreign exchange contracts
1

 
1

 
—

 
—

 
1

 
1

   Total
$
111

 
$
251

 
$
(20
)
 
$
(160
)
 
$
91

 
$
91


______________________________________________
(2) Included within Other current liabilities or Other non-current liabilities
Derivative gains (losses) 
The amounts of derivative gains (losses) recognized in the Condensed Consolidated Financial Statements for the three and six months ended June 30, 2013 and 2012 are as follows (in millions):
 
Three months ended
June 30,
 
Six months ended
June 30,
 
2013
 
2012
 
2013
 
2012
Gain (Loss) recognized in Accumulated Other Comprehensive Loss:
 

 
 

 
 
 
 
Cash Flow Hedges:
 

 
 

 
 
 
 
Interest rate contracts
$
—

 
$
—

 
$
—

 
$
—

Foreign exchange contracts
—

 
(32
)
 
(29
)
 
(30
)
Total
$
—

 
$
(32
)
 
$
(29
)
 
$
(30
)
Foreign Net Investment Hedges:
 

 
 

 
 
 
 
Foreign exchange contracts
$
—

 
$
11

 
$
—

 
$
1

Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion):
 
 
 
 
 
 
 
Cash Flow Hedges:
 

 
 

 
 
 
 
Interest rate contracts (1)
$
—

 
$
—

 
$
(1
)
 
$
—

Foreign exchange contracts (2)
14

 
(8
)
 
3

 
(16
)
Total
14

 
(8
)
 
2

 
(16
)
Foreign Net Investment Hedges:
 

 
 

 
 
 
 
Foreign exchange contracts
$
—

 
$
—

 
$
—

 
$
—

  ______________________________________________
(1) Included within Fiduciary investment income and Interest expense
(2) Included within Other income and Interest expense

 
Three months ended June 30,
 
Six months ended June 30,
 
Amount of Gain (Loss) Recognized in Income on Derivative (1) (2)
 
Amount of Gain (Loss) Recognized in Income on Related Hedge Item (2)
 
Amount of Gain (Loss) Recognized in Income on Derivative (1) (2)
 
Amount of Gain (Loss) Recognized in Income on Related Hedge Item (1) (2)
 
2013
 
2012
 
2013
 
2012
 
2013
 
2012
 
2013
 
2012
Fair value hedges:
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
Interest rate contracts
$
—

 
$
1

 
$
—

 
$
(1
)
 
$
(1
)
 
$
3

 
$
1

 
$
(3
)
  ______________________________________________
(1) Relates to fixed rate debt
(2) Included in Interest expense
Fair Value and Financial Instruments (Tables)
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 June 30, 2013 and December 31, 2012 (in millions):
 
 
 
Fair Value Measurements Using
 
Balance at June 30, 2013
 
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 and highly liquid debt securities (1)
$
2,438

 
$
2,413

 
$
25

 
$
—

Other investments:
 

 
 

 
 

 
 

Fixed maturity securities:
 

 
 

 
 

 
 

Corporate bonds
18

 
—

 
—

 
18

Government bonds
7

 
—

 
7

 
—

Equity securities
28

 
28

 
—

 
—

Derivatives:
 

 
 

 
 

 
 

Interest rate contracts
16

 
—

 
16

 
—

Foreign exchange contracts
40

 
—

 
40

 
—

Liabilities:
 

 
 

 
 

 
 

Derivatives:
 

 
 

 
 

 
 

Foreign exchange contracts
111

 
—

 
111

 
—

  ______________________________________________
(1) Includes $2,413 million of money market funds and $25 million of highly liquid debt securities that are classified as Fiduciary assets, Short-term investments or Cash and cash equivalents in the Condensed Consolidated Statements of Financial Position, depending on their nature and initial maturity.  See Note 8 “Investments” for additional information regarding the Company’s investments.
 
 
 
Fair Value Measurements Using
 
Balance at December 31, 2012
 
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 and highly liquid debt securities (1)
$
2,133

 
$
2,108

 
$
25

 
$
—

Other investments:
 

 
 

 
 

 
 

Fixed maturity securities:
 

 
 

 
 

 
 

Corporate bonds
12

 
—

 
—

 
12

Government Bonds
8

 
—

 
8

 
—

Equity securities
5

 
5

 
—

 
—

Derivatives:
 

 
 

 
 

 
 

Interest rate contracts
17

 
—

 
17

 
—

Foreign exchange contracts
193

 
—

 
193

 
—

Liabilities:
 

 
 

 
 

 
 

Derivatives:
 

 
 

 
 

 
 

Foreign exchange contracts
251

 
—

 
251

 
—

  ______________________________________________
(1)  Includes $2,108 million of money market funds and $25 million of highly liquid debt securities that are classified as Fiduciary assets, Short-term investments or Cash and cash equivalents in the Condensed Consolidated Statements of Financial Position, depending on their nature and initial maturity.  See Note 8 “Investments” for additional information regarding the Company’s investments.
Schedule of financial instruments where the carrying amounts and fair values differ 
The fair value of all long-term debt instruments is classified as Level 2. The following table discloses the Company’s financial instruments where the carrying amounts and fair values differ (in millions):
 
June 30, 2013
 
December 31, 2012
 
Carrying Value
 
Fair Value
 
Carrying Value
 
Fair Value
Long-term debt
$
4,012

 
$
4,289

 
$
3,713

 
$
4,162

Segment Information (Tables)
Schedule of total revenue by business segments 
Aon’s total revenue is as follows (in millions):
 
Three months ended June 30,
 
Six months ended June 30,
 
2013

2012
 
2013
 
2012
Risk Solutions
$
1,944


$
1,899

 
$
3,915

 
$
3,804

HR Solutions
956


931

 
1,910

 
1,876

Intersegment elimination
(3
)

(9
)
 
(13
)
 
(18
)
Total revenue
$
2,897


$
2,821

 
$
5,812

 
$
5,662

Schedule of commissions, fees and other revenues by products 
Commissions, fees and other revenues by product are as follows (in millions):
 
Three months ended June 30,
 
Six months ended June 30,
 
2013
 
2012
 
2013
 
2012
Retail brokerage
$
1,562

 
$
1,511

 
$
3,124

 
$
3,005

Reinsurance brokerage
376

 
380

 
778

 
779

Total Risk Solutions Segment
1,938

 
1,891

 
3,902

 
3,784

Consulting services
388

 
366

 
770

 
746

Outsourcing
578

 
570

 
1,159

 
1,138

Intrasegment
(10
)
 
(5
)
 
(19
)
 
(8
)
Total HR Solutions Segment
956

 
931

 
1,910

 
1,876

Intersegment
(3
)
 
(9
)
 
(13
)
 
(18
)
Total commissions, fees and other revenue
$
2,891

 
$
2,813

 
$
5,799

 
$
5,642

Schedule of fiduciary investment income by business segments 
Fiduciary investment income by segment is as follows (in millions):
 
Three months ended June 30,
 
Six months ended June 30,
 
2013
 
2012
 
2013
 
2012
Risk Solutions
$
6

 
$
8

 
$
13

 
$
20

HR Solutions
—

 
—

 
—

 
—

Total fiduciary investment income
$
6

 
$
8

 
$
13

 
$
20

Schedule of reconciliation of segment income before tax to income from continuing operations before income taxes 
A reconciliation of segment operating income before tax to income before income taxes is as follows (in millions):
 
Three months ended June 30,
 
Six months ended June 30,
 
2013
 
2012
 
2013
 
2012
Risk Solutions
$
391

 
$
384

 
$
794

 
$
750

HR Solutions
36

 
58

 
87

 
131

Segment income before income taxes
427

 
442

 
881

 
881

Unallocated expenses
(45
)
 
(48
)
 
(89
)
 
(85
)
Interest income
2

 
2

 
3

 
5

Interest expense
(48
)
 
(57
)
 
(100
)
 
(116
)
Other income
6

 
12

 
15

 
12

Income before income taxes
$
342

 
$
351

 
$
710

 
$
697

Guarantee of Registered Securities (Tables)
Condensed Consolidating Statements of Income 
Condensed Consolidating Statement of Income
 
 
 
Three months ended June 30, 2013
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions)
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
Revenue
 
 
 
 
 
 
 
 
 
 
Commissions, fees and other
 
$
1

 
$
—

 
$
2,890

 
$
—

 
$
2,891

Fiduciary investment income
 
—

 
—

 
6

 
—

 
6

Total revenue
 
1

 
—

 
2,896

 
—

 
2,897

 
 
 
 
 
 
 
 
 
 
 
Expenses
 
 
 
 
 
 
 
 
 
 
Compensation and benefits
 
4

 
5

 
1,703

 
—

 
1,712

Other general expenses
 
9

 
17

 
777

 
—

 
803

Total operating expenses
 
13

 
22

 
2,480

 
—

 
2,515

Operating income
 
(12
)
 
(22
)
 
416

 
—

 
382

Interest income
 
—

 
1

 
1

 
—

 
2

Interest expense
 
(4
)
 
(33
)
 
(11
)
 
—

 
(48
)
Intercompany interest (expense) income
 
(7
)
 
43

 
(36
)
 
—

 
—

Other (expense) income
 
—

 
(2
)
 
8

 
—

 
6

(Loss) income from continuing operations before taxes
 
(23
)
 
(13
)
 
378

 
—

 
342

Income tax (benefit) expense
 
(3
)
 
(6
)
 
99

 
—

 
90

(Loss) income from continuing operations
 
(20
)
 
(7
)
 
279

 
—

 
252

 
 
 
 
 
 
 
 
 
 
 
Loss from discontinued operations before taxes
 
—

 
—

 
—

 
—

 
—

Income taxes
 
—

 
—

 
—

 
—

 
—

Loss from discontinued operations
 
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
Equity in earnings of subsidiaries, net of tax
 
261

 
246

 
239

 
(746
)
 
—

 
 
 
 
 
 
 
 
 
 
 
Net income
 
241

 
239

 
518

 
(746
)
 
252

Less: Net income attributable to noncontrolling interests
 
—

 
—

 
11

 
—

 
11

Net income attributable to Aon shareholders
 
$
241

 
$
239

 
$
507

 
$
(746
)
 
$
241



Condensed Consolidating Statement of Income
 
 
 
Three months ended June 30, 2012
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions)
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
Revenue
 
 
 
 
 
 
 
 
 
 
Commissions, fees and other
 
$
—

 
$
—

 
$
2,813

 
$
—

 
$
2,813

Fiduciary investment income
 
—

 
—

 
8

 
—

 
8

Total revenue
 
—

 
—

 
2,821

 
—

 
2,821

 
 
 
 
 
 
 
 
 
 
 
Expenses
 
 
 
 
 
 
 
 
 
 
Compensation and benefits
 
2

 
—

 
1,637

 
—

 
1,639

Other general expenses
 
10

 
7

 
771

 
—

 
788

Total operating expenses
 
12

 
7

 
2,408

 
—

 
2,427

Operating income
 
(12
)
 
(7
)
 
413

 
—

 
394

Interest income
 
—

 
—

 
2

 
—

 
2

Interest expense
 
—

 
(40
)
 
(17
)
 
—

 
(57
)
Intercompany interest (expense) income
 
(3
)
 
47

 
(44
)
 
—

 
—

Other (expense) income
 
—

 
(5
)
 
17

 
—

 
12

(Loss) income from continuing operations before taxes
 
(15
)
 
(5
)
 
371

 
—

 
351

Income tax (benefit) expense
 
(1
)
 
(2
)
 
99

 
—

 
96

(Loss) income from continuing operations
 
(14
)
 
(3
)
 
272

 
—

 
255

 
 
 
 
 
 
 
 
 
 
 
Loss from discontinued operations before taxes
 
—

 
—

 
(1
)
 
—

 
(1
)
Income taxes
 
—

 
—

 
—

 
—

 
—

Loss from discontinued operations
 
—

 
—

 
(1
)
 
—

 
(1
)
 
 
 
 
 
 
 
 
 
 
 
Equity in earnings of subsidiaries, net of tax
 
260

 
234

 
231

 
(725
)
 
—

 
 
 
 
 
 
 
 
 
 
 
Net income
 
246

 
231

 
502

 
(725
)
 
254

Less: Net income attributable to noncontrolling interests
 
—

 
—

 
8

 
—

 
8

Net income attributable to Aon shareholders
 
$
246

 
$
231

 
$
494

 
$
(725
)
 
$
246






Condensed Consolidating Statement of Income
 
 
 
Six months ended June 30, 2013
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions)
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
Revenue
 
 
 
 
 
 
 
 
 
 
Commissions, fees and other
 
$
2

 
$
—

 
$
5,797

 
$
—

 
$
5,799

Fiduciary investment income
 
—

 
—

 
13

 
—

 
13

Total revenue
 
2

 
—

 
5,810

 
—

 
5,812

 
 
 
 
 
 
 
 
 
 
 
Expenses
 
 
 
 
 
 
 
 
 
 
Compensation and benefits
 
15

 
21

 
3,401

 
—

 
3,437

Other general expenses
 
16

 
23

 
1,544

 
—

 
1,583

Total operating expenses
 
31

 
44

 
4,945

 
—

 
5,020

Operating income
 
(29
)
 
(44
)
 
865

 
—

 
792

Interest income
 
—

 
1

 
2

 
—

 
3

Interest expense
 
(6
)
 
(67
)
 
(27
)
 
—

 
(100
)
Intercompany interest (expense) income
 
(14
)
 
86

 
(72
)
 
—

 
—

Other (expense) income
 
—

 
(3
)
 
18

 
—

 
15

(Loss) income from continuing operations before taxes
 
(49
)
 
(27
)
 
786

 
—

 
710

Income tax (benefit) expense
 
(9
)
 
(11
)
 
206

 
—

 
186

(Loss) income from continuing operations
 
(40
)
 
(16
)
 
580

 
—

 
524

 
 
 
 
 
 
 
 
 
 
 
Loss from discontinued operations before taxes
 
—

 
—

 
—

 
—

 
—

Income taxes
 
—

 
—

 
—

 
—

 
—

Loss from discontinued operations
 
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
Equity in earnings of subsidiaries, net of tax
 
542

 
509

 
493

 
(1,544
)
 
—

 
 
 
 
 
 
 
 
 
 
 
Net income
 
502

 
493

 
1,073

 
(1,544
)
 
524

Less: Net income attributable to noncontrolling interests
 
—

 
—

 
22

 
—

 
22

Net income attributable to Aon shareholders
 
$
502

 
$
493

 
$
1,051

 
$
(1,544
)
 
$
502

Condensed Consolidating Statement of Income
 
 
 
Six months ended June 30, 2012
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions)
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
Revenue
 
 
 
 
 
 
 
 
 
 
Commissions, fees and other
 
$
—

 
$
—

 
$
5,642

 
$
—

 
$
5,642

Fiduciary investment income
 
—

 
1

 
19

 
—

 
20

Total revenue
 
—

 
1

 
5,661

 
—

 
5,662

 
 
 
 
 
 
 
 
 
 
 
Expenses
 
 
 
 
 
 
 
 
 
 
Compensation and benefits
 
2

 
67

 
3,231

 
—

 
3,300

Other general expenses
 
10

 
21

 
1,535

 
—

 
1,566

Total operating expenses
 
12

 
88

 
4,766

 
—

 
4,866

Operating income
 
(12
)
 
(87
)
 
895

 
—

 
796

Interest income
 
—

 
—

 
5

 
—

 
5

Interest expense
 
—

 
(80
)
 
(36
)
 
—

 
(116
)
Intercompany interest (expense) income
 
(3
)
 
93

 
(90
)
 
—

 
—

Other (expense) income
 
—

 
3

 
9

 
—

 
12

(Loss) income from continuing operations before taxes
 
(15
)
 
(71
)
 
783

 
—

 
697

Income tax (benefit) expense
 
(1
)
 
(27
)
 
221

 
—

 
193

(Loss) income from continuing operations
 
(14
)
 
(44
)
 
562

 
—

 
504

 
 
 
 
 
 
 
 
 
 
 
Loss from discontinued operations before taxes
 
—

 
—

 
(1
)
 
—

 
(1
)
Income taxes
 
—

 
—

 
—

 
—

 
—

Loss from discontinued operations
 
—

 
—

 
(1
)
 
—

 
(1
)
 
 
 
 
 
 
 
 
 
 
 
Equity in earnings of subsidiaries, net of tax
 
498

 
484

 
440

 
(1,422
)
 
—

 
 
 
 
 
 
 
 
 
 
 
Net income
 
484

 
440

 
1,001

 
(1,422
)
 
503

Less: Net income attributable to noncontrolling interests
 
—

 
—

 
19

 
—

 
19

Net income attributable to Aon shareholders
 
$
484

 
$
440

 
$
982

 
$
(1,422
)
 
$
484


Condensed Consolidating Statements of Comprehensive Income 
Condensed Consolidating Statement of Comprehensive Income
 
 
 
Three months ended June 30, 2013
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions)
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
Net income
 
$
241

 
$
239

 
$
518

 
$
(746
)
 
$
252

Less: Net income attributable to noncontrolling interests
 
—

 
—

 
11

 
—

 
11

Net income attributable to Aon shareholders
 
$
241

 
$
239

 
$
507

 
$
(746
)
 
$
241

Other comprehensive loss, net of tax:
 
 
 
 
 
 
 
 
 
 
Change in fair value of investments
 
—

 
4

 
9

 
—

 
13

Change in fair value of derivatives
 
—

 
2

 
(9
)
 
—

 
(7
)
Foreign currency translation adjustments
 
—

 
(11
)
 
(47
)
 
—

 
(58
)
Post-retirement benefit obligation
 
—

 
7

 
11

 
—

 
18

Total other comprehensive loss
 
—

 
2

 
(36
)
 
—

 
(34
)
Equity in other comprehensive loss of subsidiaries, net of tax
 
(32
)
 
(34
)
 
(32
)
 
98

 
—

Less: Other comprehensive loss attributable to noncontrolling interests
 
—

 
—

 
(2
)
 
—

 
(2
)
Total other comprehensive loss attributable to Aon shareholders
 
(32
)
 
(32
)
 
(66
)
 
98

 
(32
)
Comprehensive income attributable to Aon shareholders
 
$
209

 
$
207

 
$
441

 
$
(648
)
 
$
209

 
Condensed Consolidating Statement of Comprehensive Income
 
 
 
Three months ended June 30, 2012
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions)
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
Net income
 
$
246

 
$
231

 
$
502

 
$
(725
)
 
$
254

Less: Net income attributable to noncontrolling interests
 
—

 
—

 
8

 
—

 
8

Net income attributable to Aon shareholders
 
$
246

 
$
231

 
$
494

 
$
(725
)
 
$
246

Other comprehensive income, net of tax:
 
 
 
 
 
 
 
 
 
 
Change in fair value of investments
 
—

 
—

 
—

 
—

 
—

Change in fair value of derivatives
 
—

 
—

 
(17
)
 
—

 
(17
)
Foreign currency translation adjustments
 
—

 
(5
)
 
(192
)
 
—

 
(197
)
Post-retirement benefit obligation
 
—

 
9

 
9

 
—

 
18

Total other comprehensive income
 
—

 
4

 
(200
)
 
—

 
(196
)
Equity in other comprehensive income of subsidiaries, net of tax
 
(193
)
 
(193
)
 
(189
)
 
575

 
—

Less: Other comprehensive income attributable to noncontrolling interests
 
—

 
—

 
(3
)
 
—

 
(3
)
Total other comprehensive income attributable to Aon shareholders
 
(193
)
 
(189
)
 
(386
)
 
575

 
(193
)
Comprehensive income attributable to Aon Shareholders
 
$
53

 
$
42

 
$
108

 
$
(150
)
 
$
53



Condensed Consolidating Statement of Comprehensive Income
 
 
 
Six months ended June 30, 2013
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions)
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
Net income
 
$
502

 
$
493

 
$
1,073

 
$
(1,544
)
 
$
524

Less: Net income attributable to noncontrolling interests
 
—

 
—

 
22

 
—

 
22

Net income attributable to Aon shareholders
 
$
502

 
$
493

 
$
1,051

 
$
(1,544
)
 
$
502

Other comprehensive loss, net of tax:
 
 
 
 
 
 
 
 
 
 
Change in fair value of investments
 
—

 
4

 
9

 
—

 
13

Change in fair value of derivatives
 
—

 
3

 
(24
)
 
—

 
(21
)
Foreign currency translation adjustments
 
—

 
(19
)
 
(213
)
 
—

 
(232
)
Post-retirement benefit obligation
 
—

 
15

 
26

 
—

 
41

Total other comprehensive loss
 
—

 
3

 
(202
)
 
—

 
(199
)
Equity in other comprehensive loss of subsidiaries, net of tax
 
(197
)
 
(200
)
 
(197
)
 
594

 
—

Less: Other comprehensive loss attributable to noncontrolling interests
 
—

 
—

 
(2
)
 
—

 
(2
)
Total other comprehensive loss attributable to Aon shareholders
 
(197
)
 
(197
)
 
(397
)
 
594

 
(197
)
Comprehensive income attributable to Aon shareholders
 
$
305

 
$
296

 
$
654

 
$
(950
)
 
$
305

 
Condensed Consolidating Statement of Comprehensive Income
 
 
 
Six months ended June 30, 2012
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions)
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
Net income
 
$
484

 
$
440

 
$
1,001

 
$
(1,422
)
 
$
503

Less: Net income attributable to noncontrolling interests
 
—

 
—

 
19

 
—

 
19

Net income attributable to Aon shareholders
 
$
484

 
$
440

 
$
982

 
$
(1,422
)
 
$
484

Other comprehensive income, net of tax:
 
 
 
 
 
 
 
 
 
 
Change in fair value of investments
 
—

 
—

 
—

 
—

 
—

Change in fair value of derivatives
 
—

 
—

 
(10
)
 
—

 
(10
)
Foreign currency translation adjustments
 
—

 
(1
)
 
(92
)
 
—

 
(93
)
Post-retirement benefit obligation
 
—

 
15

 
24

 
—

 
39

Total other comprehensive income
 
—

 
14

 
(78
)
 
—

 
(64
)
Equity in other comprehensive income of subsidiaries, net of tax
 
(62
)
 
(77
)
 
(63
)
 
202

 
—

Less: Other comprehensive income attributable to noncontrolling interests
 
—

 
—

 
(2
)
 
—

 
(2
)
Total other comprehensive income attributable to Aon shareholders
 
(62
)
 
(63
)
 
(139
)
 
202

 
(62
)
Comprehensive income attributable to Aon Shareholders
 
$
422

 
$
377

 
$
843

 
$
(1,220
)
 
$
422

Condensed Consolidating Statements of Financial Position 
Condensed Consolidating Statement of Financial Position
 
 
 
As of June 30, 2013
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions)
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
ASSETS
 
 

 
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
294

 
$
258

 
$
—

 
$
(286
)
 
$
266

Short-term investments
 
—

 
63

 
244

 
—

 
307

Receivables, net
 
—

 
(2
)
 
2,840

 
—

 
2,838

Fiduciary assets
 
—

 
—

 
12,576

 
—

 
12,576

Intercompany receivables
 
255

 
2,881

 
5,244

 
(8,380
)
 
—

Other current assets
 
17

 
50

 
339

 
—

 
406

Total Current Assets
 
566

 
3,250

 
21,243

 
(8,666
)
 
16,393

Goodwill
 
—

 
—

 
8,795

 
—

 
8,795

Intangible assets, net
 
—

 
—

 
2,736

 
—

 
2,736

Fixed assets, net
 
—

 
—

 
808

 
—

 
808

Investments
 
—

 
60

 
112

 
—

 
172

Intercompany receivables
 
166

 
2,093

 
2,196

 
(4,455
)
 
—

Other non-current assets
 
119

 
739

 
403

 
(103
)
 
1,158

Investment in subsidiary
 
10,879

 
11,057

 
8,716

 
(30,652
)
 
—

TOTAL ASSETS
 
$
11,730

 
$
17,199

 
$
45,009

 
$
(43,876
)
 
$
30,062

 
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 

 
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
Fiduciary liabilities
 
$
—

 
$
—

 
$
12,576

 
$
—

 
$
12,576

Short-term debt and current portion of long-term debt
 
297

 
107

 
23

 
—

 
427

Accounts payable and accrued liabilities
 
17

 
65

 
1,627

 
(286
)
 
1,423

Intercompany payables
 
14

 
4,112

 
2,961

 
(7,087
)
 
—

Other current liabilities
 
1

 
47

 
721

 
—

 
769

Total Current Liabilities
 
329

 
4,331

 
17,908

 
(7,373
)
 
15,195

Long-term debt
 
443

 
2,515

 
1,054

 
—

 
4,012

Pension, other post-retirement and other post-employment liabilities
 
—

 
1,220

 
677

 
—

 
1,897

Intercompany payables
 
3,393

 
166

 
2,189

 
(5,748
)
 
—

Other non-current liabilities
 
6

 
251

 
1,186

 
(103
)
 
1,340

TOTAL LIABILITIES
 
4,171

 
8,483

 
23,014

 
(13,224
)
 
22,444

 
 
 
 
 
 
 
 
 
 
 
TOTAL AON SHAREHOLDERS’ EQUITY
 
7,559

 
8,716

 
21,936

 
(30,652
)
 
7,559

Noncontrolling interests
 
—

 
—

 
59

 
—

 
59

TOTAL EQUITY
 
7,559

 
8,716

 
21,995

 
(30,652
)
 
7,618

 
 
 
 
 
 
 
 
 
 
 
TOTAL LIABILITIES AND EQUITY
 
$
11,730

 
$
17,199

 
$
45,009

 
$
(43,876
)
 
$
30,062


Condensed Consolidating Statement of Financial Position
 
 
 
As of December 31, 2012
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions)
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
ASSETS
 
 

 
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
131

 
$
199

 
$
—

 
$
(39
)
 
$
291

Short-term investments
 
—

 
89

 
257

 
—

 
346

Receivables, net
 
5

 
1

 
3,095

 
—

 
3,101

Fiduciary assets
 
—

 
—

 
12,214

 
—

 
12,214

Intercompany receivables
 
—

 
2,092

 
3,545

 
(5,637
)
 
—

Other current assets
 
7

 
53

 
370

 
—

 
430

Total Current Assets
 
143

 
2,434

 
19,481

 
(5,676
)
 
16,382

Goodwill
 
—

 
—

 
8,943

 
—

 
8,943

Intangible assets, net
 
—

 
—

 
2,975

 
—

 
2,975

Fixed assets, net
 
—

 
—

 
820

 
—

 
820

Investments
 
—

 
49

 
116

 
—

 
165

Intercompany receivables
 
166

 
1,997

 
2,350

 
(4,513
)
 
—

Other non-current assets
 
117

 
735

 
1,174

 
(825
)
 
1,201

Investment in subsidiary
 
10,398

 
10,522

 
8,322

 
(29,242
)
 
—

TOTAL ASSETS
 
$
10,824

 
$
15,737

 
$
44,181

 
$
(40,256
)
 
$
30,486

 
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 

 
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
Fiduciary liabilities
 
$
—

 
$
—

 
$
12,214

 
$
—

 
$
12,214

Short-term debt and current portion of long-term debt
 
—

 
429

 
23

 
—

 
452

Accounts payable and accrued liabilities
 
10

 
71

 
1,811

 
(39
)
 
1,853

Intercompany payables
 
51

 
2,637

 
2,162

 
(4,850
)
 
—

Other current liabilities
 
—

 
49

 
779

 
3

 
831

Total Current Liabilities
 
61

 
3,186

 
16,989

 
(4,886
)
 
15,350

Long-term debt
 
107

 
2,515

 
1,091

 
—

 
3,713

Pension, other post-retirement and other post-employment liabilities
 
—

 
1,294

 
982

 
—

 
2,276

Intercompany payables
 
2,890

 
166

 
2,247

 
(5,303
)
 
—

Other non-current liabilities
 
4

 
254

 
1,909

 
(825
)
 
1,342

TOTAL LIABILITIES
 
3,062

 
7,415

 
23,218

 
(11,014
)
 
22,681

 
 
 
 
 
 
 
 
 
 
 
TOTAL AON SHAREHOLDERS’ EQUITY
 
7,762

 
8,322

 
20,920

 
(29,242
)
 
7,762

Noncontrolling interests
 
—

 
—

 
43

 
—

 
43

TOTAL EQUITY
 
7,762

 
8,322

 
20,963

 
(29,242
)
 
7,805

 
 
 
 
 
 
 
 
 
 
 
TOTAL LIABILITIES AND EQUITY
 
$
10,824

 
$
15,737

 
$
44,181

 
$
(40,256
)
 
$
30,486


Condensed Consolidating Statements of Cash Flows 
Condensed Consolidating Statement of Cash Flows
 
 
 
Six months ended June 30, 2013
 
 
Aon
 
Aon
 
Other
Non-Guarantor
 
Consolidating
 
 
(millions)
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES
 
 

 
 

 
 

 
 

 
 

CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES
 
$
(23
)
 
$
(89
)
 
$
499

 
$
—

 
$
387

 
 
 
 
 
 
 
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES
 
 
 
 
 
 
 
 
 
 
Sales of long-term investments
 
—

 
2

 
21

 
—

 
23

Purchase of long-term investments
 
—

 
(6
)
 
—

 
—

 
(6
)
Net (purchases) sales of short-term investments - non-fiduciary
 
—

 
26

 
3

 
—

 
29

Acquisition of businesses, net of cash acquired
 
—

 
—

 
(23
)
 
—

 
(23
)
Proceeds from sale of businesses
 
—

 
—

 
1

 
—

 
1

Capital expenditures
 
—

 
—

 
(122
)
 
—

 
(122
)
CASH USED FOR INVESTING ACTIVITIES
 
—

 
22

 
(120
)
 
—

 
(98
)
 
 
 
 
 
 
 
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES
 
 
 
 
 
 
 
 
 
 
Share repurchase
 
(525
)
 
—

 
—

 
—

 
(525
)
Advances from (to) affiliates
 
126

 
444

 
(323
)
 
(247
)
 
—

Issuance of shares for employee benefit plans
 
57

 
—

 
—

 
—

 
57

Issuance of debt
 
639

 
2,044

 
231

 
—

 
2,914

Repayment of debt
 
(6
)
 
(2,362
)
 
(239
)
 
—

 
(2,607
)
Cash dividends to shareholders
 
(105
)
 
—

 
—

 
—

 
(105
)
Purchase of shares from noncontrolling interests
 
—

 
—

 
—

 
—

 
—

Dividends paid to noncontrolling interests
 
—

 
—

 
(6
)
 
—

 
(6
)
CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES
 
186

 
126

 
(337
)
 
(247
)
 
(272
)
 
 
 
 
 
 
 
 
 
 
 
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
 
—

 
—

 
(42
)
 
—

 
(42
)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
 
163

 
59

 
—

 
(247
)
 
(25
)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
 
131

 
199

 
—

 
(39
)
 
291

CASH AND CASH EQUIVALENTS AT END OF PERIOD
 
$
294

 
$
258

 
$
—

 
$
(286
)
 
$
266


Condensed Consolidating Statement of Cash Flows
 
 
 
Six months ended June 30, 2012
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions) 
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES
 
 

 
 

 
 

 
 

 
 

CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES
 
$
(19
)
 
$
(99
)
 
$
387

 
$
—

 
$
269

 
 
 
 
 
 
 
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES
 
 
 
 
 
 
 
 
 
 
Sales of long-term investments
 
—

 
—

 
51

 
—

 
51

Purchase of long-term investments
 
—

 
(7
)
 
—

 
—

 
(7
)
Net (purchases) sales of short-term investments - non-fiduciary
 
—

 
211

 
48

 
—

 
259

Acquisition of businesses, net of cash acquired
 
—

 
(55
)
 
(27
)
 
—

 
(82
)
Proceeds from sale of businesses
 
—

 
—

 
1

 
—

 
1

Capital expenditures
 
—

 
—

 
(129
)
 
—

 
(129
)
CASH USED FOR INVESTING ACTIVITIES
 
—

 
149

 
(56
)
 
—

 
93

 
 
 
 
 
 
 
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES
 
 
 
 
 
 
 
 
 
 
Share repurchase
 
(250
)
 
(100
)
 
—

 
—

 
(350
)
Advances from (to) affiliates
 
325

 
118

 
(443
)
 
—

 
—

Issuance of shares for employee benefit plans
 
15

 
49

 
—

 
—

 
64

Issuance of debt
 
—

 
332

 
—

 
—

 
332

Repayment of debt
 
—

 
(298
)
 
(7
)
 
—

 
(305
)
Cash dividends to shareholders
 
(52
)
 
(50
)
 
—

 
—

 
(102
)
Purchase of shares from noncontrolling interests
 
—

 
—

 
1

 
—

 
1

Dividends paid to noncontrolling interests
 
—

 
—

 
(6
)
 
—

 
(6
)
CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES
 
38

 
51

 
(455
)
 
—

 
(366
)
 
 
 
 
 
 
 
 
 
 
 
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
 
—

 
—

 
18

 
—

 
18

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
 
19

 
101

 
(106
)
 
—

 
14

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
 
—

 
(21
)
 
293

 
—

 
272

CASH AND CASH EQUIVALENTS AT END OF PERIOD
 
$
19

 
$
80

 
$
187

 
$
—

 
$
286


 
Condensed Consolidating Statements of Income 
Condensed Consolidating Statement of Income
 
 
Three months ended June 30, 2013
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions) 
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
(Loss) income from continuing operations
 
$
(20
)
 
$
(7
)
 
$
279

 
$
—

 
$
252

Loss from discontinued operations
 
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
Equity in earnings of subsidiaries, net of tax
 
261

 
246

 
—

 
(507
)
 
—

 
 
 
 
 
 
 
 
 
 
 
Net income
 
241

 
239

 
279

 
(507
)
 
252

Less: Net income attributable to noncontrolling interests
 
—

 
—

 
11

 
—

 
11

Net income attributable to Aon shareholders
 
$
241

 
$
239

 
$
268

 
$
(507
)
 
$
241


Condensed Consolidating Statement of Income
 
 
Three months ended June 30, 2012
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions)
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
(Loss) income from continuing operations
 
$
(14
)
 
$
(3
)
 
$
272

 
$
—

 
$
255

Loss from discontinued operations
 
—

 
—

 
(1
)
 
—

 
(1
)
 
 
 
 
 
 
 
 
 
 
 
Equity in earnings of subsidiaries, net of tax
 
260

 
234

 
—

 
(494
)
 
—

 
 
 
 
 
 
 
 
 
 
 
Net income
 
246

 
231

 
271

 
(494
)
 
254

Less: Net income attributable to noncontrolling interests
 
—

 
—

 
8

 
—

 
8

Net income attributable to Aon shareholders
 
$
246

 
$
231

 
$
263

 
$
(494
)
 
$
246


Condensed Consolidating Statement of Income
 
 
Six months ended June 30, 2013
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions)
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
(Loss) income from continuing operations
 
$
(40
)
 
$
(16
)
 
$
580

 
$
—

 
$
524

Loss from discontinued operations
 
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
Equity in earnings of subsidiaries, net of tax
 
542

 
509

 
—

 
(1,051
)
 
—

 
 
 
 
 
 
 
 
 
 
 
Net income
 
502

 
493

 
580

 
(1,051
)
 
524

Less: Net income attributable to noncontrolling interests
 
—

 
—

 
22

 
—

 
22

Net income attributable to Aon shareholders
 
$
502

 
$
493

 
$
558

 
$
(1,051
)
 
$
502


Condensed Consolidating Statement of Income
 
 
Six months ended June 30, 2012
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions)
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
(Loss) income from continuing operations
 
$
(14
)
 
$
(44
)
 
$
562

 
$
—

 
$
504

Loss from discontinued operations
 
—

 
—

 
(1
)
 
—

 
(1
)
 
 
 
 
 
 
 
 
 
 
 
Equity in earnings of subsidiaries, net of tax
 
498

 
484

 
—

 
(982
)
 
—

 
 
 
 
 
 
 
 
 
 
 
Net income
 
484

 
440

 
561

 
(982
)
 
503

Less: Net income attributable to noncontrolling interests
 
—

 
—

 
19

 
—

 
19

Net income attributable to Aon shareholders
 
$
484

 
$
440

 
$
542

 
$
(982
)
 
$
484

Condensed Consolidating Statements of Comprehensive Income 
Condensed Consolidating Statement of Comprehensive Income
 
 
Three months ended June 30, 2013
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions) 
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
Net income attributable to Aon shareholders
 
$
241

 
$
239

 
$
268

 
$
(507
)
 
$
241

Total other comprehensive loss
 
—

 
2

 
(36
)
 
—

 
(34
)
 
 
 
 
 
 
 
 
 
 
 
Equity in other comprehensive loss of subsidiaries, net of tax
 
(32
)
 
(34
)
 
—

 
66

 
—

Less: Other comprehensive loss attributable to noncontrolling interests
 
—

 
—

 
(2
)
 
—

 
(2
)
Total other comprehensive loss attributable to Aon shareholders
 
(32
)
 
(32
)
 
(34
)
 
66

 
(32
)
Comprehensive income attributable to Aon shareholders
 
$
209

 
$
207

 
$
234

 
$
(441
)
 
$
209


Condensed Consolidating Statement of Comprehensive Income
 
 
Three months ended June 30, 2012
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions) 
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
Net income attributable to Aon shareholders
 
$
246

 
$
231

 
$
263

 
$
(494
)
 
$
246

Total other comprehensive income
 
—

 
4

 
(200
)
 
—

 
(196
)
 
 
 
 
 
 
 
 
 
 
 
Equity in other comprehensive loss of subsidiaries, net of tax
 
(193
)
 
(193
)
 
—

 
386

 
—

Less: Other comprehensive loss attributable to noncontrolling interests
 
—

 
—

 
(3
)
 
—

 
(3
)
Total other comprehensive loss attributable to Aon shareholders
 
(193
)
 
(189
)
 
(197
)
 
386

 
(193
)
Comprehensive income attributable to Aon shareholders
 
$
53

 
$
42

 
$
66

 
$
(108
)
 
$
53


Condensed Consolidating Statement of Comprehensive Income
 
 
Six months ended June 30, 2013
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions) 
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
Net income attributable to Aon shareholders
 
$
502

 
$
493

 
$
558

 
$
(1,051
)
 
$
502

Total other comprehensive loss
 
—

 
3

 
(202
)
 
—

 
(199
)
 
 
 
 
 
 
 
 
 
 
 
Equity in other comprehensive loss of subsidiaries, net of tax
 
(197
)
 
(200
)
 
—

 
397

 
—

Less: Other comprehensive loss attributable to noncontrolling interests
 
—

 
—

 
(2
)
 
—

 
(2
)
Total other comprehensive loss attributable to Aon shareholders
 
(197
)
 
(197
)
 
(200
)
 
397

 
(197
)
Comprehensive income attributable to Aon shareholders
 
$
305

 
$
296

 
$
358

 
$
(654
)
 
$
305


Condensed Consolidating Statement of Comprehensive Income
 
 
Six months ended June 30, 2012
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions) 
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
Net income attributable to Aon shareholders
 
$
484

 
$
440

 
$
542

 
$
(982
)
 
$
484

Total other comprehensive loss
 
—

 
14

 
(78
)
 
—

 
(64
)
 
 
 
 
 
 
 
 
 
 
 
Equity in other comprehensive loss of subsidiaries, net of tax
 
(62
)
 
(77
)
 
—

 
139

 
—

Less: Other comprehensive loss attributable to noncontrolling interests
 
—

 
—

 
(2
)
 
—

 
(2
)
Total other comprehensive loss attributable to Aon shareholders
 
(62
)
 
(63
)
 
(76
)
 
139

 
(62
)
Comprehensive income attributable to Aon shareholders
 
$
422

 
$
373

 
$
466

 
$
(843
)
 
$
418

Condensed Consolidating Statements of Financial Position 
Condensed Consolidating Statement of Financial Position
 
 
As of June 30, 2013
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions)
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
 
Investment in subsidiary
 
$
10,879

 
$
11,057

 
$
—

 
$
(21,936
)
 
$
—

 
 
 
 
 
 
 
 
 
 
 
TOTAL AON SHAREHOLDERS’ EQUITY
 
7,559

 
8,716

 
13,220

 
(21,936
)
 
7,559


Condensed Consolidating Statement of Financial Position
 
 
December 31, 2012
 
 
 
 
 
 
Other
 
 
 
 
 
 
Aon
 
Aon
 
Non-Guarantor
 
Consolidating
 
 
(millions)
 
plc
 
Corporation
 
Subsidiaries
 
Adjustments
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
 
Investment in subsidiary
 
$
10,398

 
$
10,522

 
$
—

 
$
(20,920
)
 
$
—

 
 
 
 
 
 
 
 
 
 
 
TOTAL AON SHAREHOLDERS’ EQUITY
 
7,762

 
8,322

 
12,598

 
(20,920
)
 
7,762

Cash and Cash Equivalents (Details)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2013
USD ($)
Jun. 30, 2013
GBP (£)
Dec. 31, 2012
USD ($)
Cash, Cash Equivalents, and Short-term Investments [Abstract]
 
 
 
Short-term investment, minimum maturity period
3 months 
3 months 
 
Short-term investment, maximum maturity period
1 year 
1 year 
 
Operating funds in U.K.
$ 118 
£ 77 
$ 124 
Cash and cash equivalents, restricted
$ 83 
 
$ 76 
Other Income (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Other (Expense) Income
 
 
 
 
Equity earnings
$ 4 
$ 3 
$ 6 
$ 8 
Realized (loss) gain on sale of investments
(2)
(8)
(1)
2 
Foreign currency remeasurement (losses) gains
(5)
18 
19 
0 
Derivative gains (losses)
9 
(2)
(9)
0 
Other
0 
1 
0 
2 
Other Income
$ 6 
$ 12 
$ 15 
$ 12 
Acquisitions and Dispositions (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2013
business
Jun. 30, 2012
business
Dec. 31, 2012
Intangible assets:
 
 
 
Goodwill
$ 8,795 
 
$ 8,943 
HR Solutions [Member]
 
 
 
Business Acquisition
 
 
 
Number of business acquired under business combination
1 
2 
 
Intangible assets:
 
 
 
Goodwill
2,958 
 
2,961 
Risk Solutions [Member]
 
 
 
Business Acquisition
 
 
 
Number of business acquired under business combination
4 
3 
 
Intangible assets:
 
 
 
Goodwill
5,837 
 
5,982 
Business Acquisition 1 [Member]
 
 
 
Business Acquisition
 
 
 
Consideration
23 
96 
 
Intangible assets:
 
 
 
Goodwill
16 
57 
 
Other intangible assets
11 
42 
 
Total
$ 27 
$ 99 
 
Acquisitions and Dispositions (Details 2) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2013
business
Jun. 30, 2012
business
Risk Solutions [Member]
 
 
Dispositions
 
 
Number of dispositions
4 
1 
Gain (loss) recognized on sale
$ 0 
 
HR Solutions [Member]
 
 
Dispositions
 
 
Number of dispositions
 
1 
Gain (loss) recognized on sale
 
$ 2 
Goodwill and Other Intangible Assets (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2013
Changes in the net carrying amount of goodwill by operating segment (in millions)
 
Balance as of December 31, 2012
$ 8,943 
Goodwill related to current year acquisitions
16 
Goodwill related to prior year acquisitions
15 
Foreign currency translation
(179)
Balance as of June 30, 2013
8,795 
Risk Solutions [Member]
 
Changes in the net carrying amount of goodwill by operating segment (in millions)
 
Balance as of December 31, 2012
5,982 
Goodwill related to current year acquisitions
14 
Goodwill related to prior year acquisitions
(2)
Foreign currency translation
(157)
Balance as of June 30, 2013
5,837 
HR Solutions [Member]
 
Changes in the net carrying amount of goodwill by operating segment (in millions)
 
Balance as of December 31, 2012
2,961 
Goodwill related to current year acquisitions
2 
Goodwill related to prior year acquisitions
17 
Foreign currency translation
(22)
Balance as of June 30, 2013
$ 2,958 
Goodwill and Other Intangible Assets (Details 2) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Dec. 31, 2012
Goodwill and Intangible Assets
 
 
 
 
 
Tradenames
$ 1,025 
 
$ 1,025 
 
$ 1,025 
Intangible assets with finite lives
 
 
 
 
 
Intangible assets with finite lives, Gross Carrying Amount
4,284 
 
4,284 
 
4,358 
Intangible assets with finite lives, Accumulated Amortization
1,548 
 
1,548 
 
1,383 
Intangible assets, Net Carrying Amount
2,736 
 
2,736 
 
2,975 
Amortization expense on intangible assets
99 
104 
198 
208 
 
Estimated amortization for intangible assets
 
 
 
 
 
Remainder of 2013
194 
 
194 
 
 
2014
334 
 
334 
 
 
2015
288 
 
288 
 
 
2016
242 
 
242 
 
 
2017
196 
 
196 
 
 
Thereafter
457 
 
457 
 
 
Estimated future amortization for intangible assets
1,711 
 
1,711 
 
 
HR Solutions [Member]
 
 
 
 
 
Estimated amortization for intangible assets
 
 
 
 
 
Remainder of 2013
139 
 
139 
 
 
2014
240 
 
240 
 
 
2015
209 
 
209 
 
 
2016
175 
 
175 
 
 
2017
139 
 
139 
 
 
Thereafter
338 
 
338 
 
 
Estimated future amortization for intangible assets
1,240 
 
1,240 
 
 
Risk Solutions [Member]
 
 
 
 
 
Estimated amortization for intangible assets
 
 
 
 
 
Remainder of 2013
55 
 
55 
 
 
2014
94 
 
94 
 
 
2015
79 
 
79 
 
 
2016
67 
 
67 
 
 
2017
57 
 
57 
 
 
Thereafter
119 
 
119 
 
 
Estimated future amortization for intangible assets
471 
 
471 
 
 
Customer related and contract based [Member]
 
 
 
 
 
Intangible assets with finite lives
 
 
 
 
 
Intangible assets with finite lives, Gross Carrying Amount
2,659 
 
2,659 
 
2,714 
Intangible assets with finite lives, Accumulated Amortization
1,124 
 
1,124 
 
969 
Intangible assets, Net Carrying Amount
1,535 
 
1,535 
 
1,745 
Marketing, technology and other [Member]
 
 
 
 
 
Intangible assets with finite lives
 
 
 
 
 
Intangible assets with finite lives, Gross Carrying Amount
600 1
 
600 1
 
619 1
Intangible assets with finite lives, Accumulated Amortization
424 1
 
424 1
 
414 1
Intangible assets, Net Carrying Amount
$ 176 1
 
$ 176 1
 
$ 205 1
Restructuring (Details) (Aon Hewitt Plan [Member], USD $)
In Millions, unless otherwise specified
0 Months Ended 3 Months Ended 6 Months Ended 12 Months Ended 32 Months Ended
Oct. 14, 2010
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Jun. 30, 2013
job_elimination
Restructuring and Related Cost
 
 
 
 
 
 
 
 
 
Estimated Total Cost for Restructuring Period
$ 411 
 
 
$ 411 1 2
 
 
 
 
 
Increase in estimated cost
86 
 
 
 
 
 
 
 
 
Number of jobs eliminated to date under the plan
 
 
 
 
 
 
 
 
2,420 
Restructuring and related charges
 
53 
13 
79 
25 
 
 
 
334 
Expensed
 
53 
 
79 
 
98 
105 
52 
 
Restructuring charges reclassified from the HR Solutions segment to the Risk Solutions segment
 
 
 
 
 
 
41 
 
 
HR Solutions [Member]
 
 
 
 
 
 
 
 
 
Restructuring and Related Cost
 
 
 
 
 
 
 
 
 
Estimated Total Cost for Restructuring Period
 
 
 
249 2
 
 
 
 
 
Restructuring and related charges
 
 
 
 
 
 
 
 
218 
Expensed
 
36 
 
51 
 
66 
49 
52 
 
Risk Solutions [Member]
 
 
 
 
 
 
 
 
 
Restructuring and Related Cost
 
 
 
 
 
 
 
 
 
Estimated Total Cost for Restructuring Period
 
 
 
162 2
 
 
 
 
 
Restructuring and related charges
 
 
 
 
 
 
 
 
116 
Expensed
 
17 
 
28 
 
32 
56 
0 
 
Real estate lease rationalization [Member]
 
 
 
 
 
 
 
 
 
Restructuring and Related Cost
 
 
 
 
 
 
 
 
 
Estimated Total Cost for Restructuring Period
150 
 
 
 
 
 
 
 
 
Workforce reduction [Member]
 
 
 
 
 
 
 
 
 
Restructuring and Related Cost
 
 
 
 
 
 
 
 
 
Estimated Total Cost for Restructuring Period
261 
 
 
261 1
 
 
 
 
 
Restructuring and related charges
 
 
 
 
 
 
 
 
225 
Expensed
 
14 
 
38 
 
74 
64 
49 
 
Workforce reduction [Member] |
Minimum [Member]
 
 
 
 
 
 
 
 
 
Restructuring and Related Cost
 
 
 
 
 
 
 
 
 
Number of jobs eliminated to date under the plan
 
 
 
 
 
 
 
 
2,900 
Lease consolidation [Member]
 
 
 
 
 
 
 
 
 
Restructuring and Related Cost
 
 
 
 
 
 
 
 
 
Estimated Total Cost for Restructuring Period
 
 
 
128 1
 
 
 
 
 
Restructuring and related charges
 
 
 
 
 
 
 
 
89 
Expensed
 
34 
 
36 
 
18 
32 
3 
 
Asset impairments [Member]
 
 
 
 
 
 
 
 
 
Restructuring and Related Cost
 
 
 
 
 
 
 
 
 
Estimated Total Cost for Restructuring Period
 
 
 
15 1
 
 
 
 
 
Restructuring and related charges
 
 
 
 
 
 
 
 
14 
Expensed
 
3 
 
3 
 
4 
7 
0 
 
Other costs associated with restructuring [Member]
 
 
 
 
 
 
 
 
 
Restructuring and Related Cost
 
 
 
 
 
 
 
 
 
Estimated Total Cost for Restructuring Period
 
 
 
7 1 3
 
 
 
 
 
Restructuring and related charges
 
 
 
 
 
 
 
 
6 3
Expensed
 
$ 2 3
 
$ 2 3
 
$ 2 3
$ 2 3
$ 0 3
 
Restructuring (Details 2) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2013
Restructuring Reserve
 
Balance at December 31, 2012
$ 137 
Expensed
76 
Cash payments
(78)
Foreign exchange translation and other
4 
Balance at June 30, 2013
139 
Aon Hewitt Plan [Member]
 
Restructuring Reserve
 
Balance at December 31, 2012
96 
Expensed
76 
Cash payments
(58)
Foreign exchange translation and other
0 
Balance at June 30, 2013
114 
Aon Benfield Plan [Member]
 
Restructuring Reserve
 
Balance at December 31, 2012
3 
Expensed
0 
Cash payments
(1)
Foreign exchange translation and other
0 
Balance at June 30, 2013
2 
2007 Plan [Member]
 
Restructuring Reserve
 
Balance at December 31, 2012
35 
Expensed
0 
Cash payments
(18)
Foreign exchange translation and other
4 
Balance at June 30, 2013
21 
Other [Member]
 
Restructuring Reserve
 
Balance at December 31, 2012
3 
Expensed
0 
Cash payments
(1)
Foreign exchange translation and other
0 
Balance at June 30, 2013
$ 2 
Investments (Details) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2013
Dec. 31, 2012
Jun. 30, 2012
Dec. 31, 2011
Interest-bearing Assets
 
 
 
 
Cash and cash equivalents
$ 266 
$ 291 
$ 286 
$ 272 
Short-term investments
307 
346 
 
 
Fiduciary assets
4,089 1
4,029 1
 
 
Investments
172 
165 
 
 
Total interest-bearing assets
4,834 
4,831 
 
 
Investments:
 
 
 
 
Equity method investments
94 
102 
 
 
Other investments
53 
43 
 
 
Fixed-maturity securities
25 
20 
 
 
Investments
$ 172 
$ 165 
 
 
Debt (Details)
3 Months Ended 3 Months Ended 6 Months Ended
Jun. 30, 2013
USD ($)
Apr. 29, 2013
EUR (€)
Jun. 30, 2013
Commercial paper [Member]
USD ($)
Jun. 30, 2013
Commercial paper [Member]
USD ($)
Dec. 31, 2012
Commercial paper [Member]
USD ($)
Apr. 15, 2013
4.250% Senior notes due 2042 [Member]
USD ($)
Mar. 8, 2013
4.250% Senior notes due 2042 [Member]
USD ($)
Dec. 31, 2012
4.250% Senior notes due 2042 [Member]
USD ($)
May 21, 2013
4.45% notes due 2043 [Member]
USD ($)
Debt Instrument
 
 
 
 
 
 
 
 
 
Total debt
 
 
$ 347,000,000 
$ 347,000,000 
$ 50,000,000 
 
 
 
 
Weighted average commercial paper outstanding
 
 
358,000,000 
261,000,000 
 
 
 
 
 
Weighted-average interest rates (as a percent)
 
 
0.35% 
0.37% 
 
 
 
 
 
Face amount of debt
 
 
 
 
 
256,000,000 
90,000,000 
 
250,000,000 
Stated interest rate
 
 
 
 
 
4.25% 
4.25% 
 
4.45% 
Credit facility maximum borrowing amount
 
650,000,000 
 
 
 
 
 
 
 
Short-term debt aggregate principal amount
 
 
 
 
 
 
 
166,000,000 
 
Repayment of debt
$ 306,000,000 
 
 
 
 
 
 
 
 
Shareholders' Equity Schedule of Net Income from Participating Securities (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
 
 
 
 
Net income from participating securities
$ 2 
$ 3 
$ 5 
$ 6 
Continuing Operations [Member]
 
 
 
 
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
 
 
 
 
Net income from participating securities
2 
3 
5 
6 
Discontinued Operations [Member]
 
 
 
 
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
 
 
 
 
Net income from participating securities
$ 0 
$ 0 
$ 0 
$ 0 
Shareholders' Equity (Details) (USD $)
Share data in Millions, except Per Share data, unless otherwise specified
1 Months Ended 3 Months Ended 6 Months Ended 15 Months Ended
Apr. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Common Stock Programs
 
 
 
 
 
 
Total cost of shares purchased
 
 
 
$ 525,000,000 
 
 
Weighted average shares outstanding
 
 
 
 
 
 
Shares for basic earnings per share
 
313.7 
332.0 
315.0 
332.2 
 
Common stock equivalents (in shares)
 
3.4 
3.6 
3.6 
3.9 
 
Shares for diluted earnings per share
 
317.1 
335.6 
318.6 
336.1 
 
Number of participating securities (in shares)
 
4.0 
4.8 
4.1 
4.8 
 
Number of shares excluded from the calculation of diluted earnings per share
 
0 
1.1 
0.4 
0.6 
 
2012 - Share Repurchase Program [Member]
 
 
 
 
 
 
Common Stock Programs
 
 
 
 
 
 
Share repurchase authorization limit
5,000,000,000 
 
 
 
 
 
Shares purchased (in shares)
 
3.5 
5.3 
8.5 
7.4 
28.0 
Average price per share of stock repurchased
 
$ 64.53 
$ 47.40 
$ 61.75 
$ 47.66 
 
Total cost of shares purchased
 
225,000,000 
250,000,000 
525,000,000 
350,000,000 
1,500,000,000 
Share repurchase, remaining authorization limit
 
$ 3,500,000,000 
 
 
 
 
Shareholders' Equity (Details 2) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward]
 
 
 
 
Balance at December 31, 2012
 
 
$ (2,610)
 
Other comprehensive loss before reclassifications, net
 
 
(253)
 
Amounts reclassified from accumulated other comprehensive loss:
 
 
 
 
Amounts reclassified from accumulated other comprehensive loss
 
 
82 
 
Tax benefit
 
 
(28)
 
Amounts reclassified from accumulated other comprehensive loss, net
 
 
54 
 
Total other comprehensive loss
(34)
(196)
(199)
(64)
Balance at June 30, 2013
(2,809)
 
(2,809)
 
Change in Fair Value of Investments [Member]
 
 
 
 
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward]
 
 
 
 
Balance at December 31, 2012
 
 
0 1
 
Other comprehensive loss before reclassifications, net
 
 
13 1
 
Amounts reclassified from accumulated other comprehensive loss:
 
 
 
 
Amounts reclassified from accumulated other comprehensive loss
 
 
0 1
 
Tax benefit
 
 
0 1
 
Amounts reclassified from accumulated other comprehensive loss, net
 
 
0 1
 
Total other comprehensive loss
 
 
13 1
 
Balance at June 30, 2013
13 1
 
13 1
 
Change in Fair Value of Derivatives [Member]
 
 
 
 
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward]
 
 
 
 
Balance at December 31, 2012
 
 
(28)2
 
Other comprehensive loss before reclassifications, net
 
 
(30)2
 
Amounts reclassified from accumulated other comprehensive loss:
 
 
 
 
Amounts reclassified from accumulated other comprehensive loss
 
 
16 2
 
Tax benefit
 
 
(7)2
 
Amounts reclassified from accumulated other comprehensive loss, net
 
 
9 2
 
Total other comprehensive loss
 
 
(21)2
 
Balance at June 30, 2013
(49)2
 
(49)2
 
Foreign Currency Translation Adjustments [Member]
 
 
 
 
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward]
 
 
 
 
Balance at December 31, 2012
 
 
233 
 
Other comprehensive loss before reclassifications, net
 
 
(232)
 
Amounts reclassified from accumulated other comprehensive loss:
 
 
 
 
Amounts reclassified from accumulated other comprehensive loss
 
 
0 
 
Tax benefit
 
 
0 
 
Amounts reclassified from accumulated other comprehensive loss, net
 
 
0 
 
Total other comprehensive loss
 
 
(232)
 
Balance at June 30, 2013
1 
 
1 
 
Post-Retirement Benefit Obligation [Member]
 
 
 
 
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward]
 
 
 
 
Balance at December 31, 2012
 
 
(2,815)1
 
Other comprehensive loss before reclassifications, net
 
 
(4)1
 
Amounts reclassified from accumulated other comprehensive loss:
 
 
 
 
Amounts reclassified from accumulated other comprehensive loss
 
 
66 1
 
Tax benefit
 
 
(21)1
 
Amounts reclassified from accumulated other comprehensive loss, net
 
 
45 1
 
Total other comprehensive loss
 
 
41 1
 
Balance at June 30, 2013
$ (2,774)1
 
$ (2,774)1
 
Employee Benefits (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
U.K. and Non-U.S. Pension Plan [Member]
 
 
 
 
Defined Benefit Plan Disclosure
 
 
 
 
Service cost
$ 4 
$ 4 
$ 9 
$ 8 
Interest cost
62 
66 
126 
132 
Expected return on plan assets
(88)
(81)
(178)
(161)
Amortization of net actuarial loss
19 
15 
37 
29 
Net periodic benefit cost
(3)
4 
(6)
8 
Estimate of contributions to defined benefit pension plans for the current fiscal year
381 
 
381 
 
Contributions made to defined benefit pension plans
64 
 
231 
 
U.S. Pension Plan [Member]
 
 
 
 
Defined Benefit Plan Disclosure
 
 
 
 
Service cost
0 
0 
0 
0 
Interest cost
28 
30 
56 
60 
Expected return on plan assets
(35)
(32)
(69)
(64)
Amortization of net actuarial loss
13 
11 
26 
22 
Net periodic benefit cost
6 
9 
13 
18 
Estimate of contributions to defined benefit pension plans for the current fiscal year
167 
 
167 
 
Contributions made to defined benefit pension plans
$ 35 
 
$ 68 
 
Share-Based Compensation Plans (Details) (USD $)
In Millions, except Share data in Thousands, unless otherwise specified
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Dec. 31, 2012
Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award
 
 
 
 
 
 
Share-based compensation expense
$ 68 
$ 50 
$ 137 
$ 105 
 
 
Restricted stock units (“RSUs”) [Member]
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award
 
 
 
 
 
 
Share-based compensation expense
40 
34 
95 
83 
 
 
Non-vested share awards
 
 
 
 
 
 
Non-vested at beginning of period (in shares)
 
 
10,432 
9,916 
9,916 
 
Granted (in shares)
 
 
3,505 
4,706 
 
 
Vested (in shares)
 
 
(3,345)
(2,986)
 
 
Forfeited (in shares)
 
 
(229)
(356)
 
 
Non-vested at end of period (in shares)
10,363 
11,280 
10,363 
11,280 
 
 
Weighted Average Fair value
 
 
 
 
 
 
Non-vested at beginning of period (in dollars per share)
 
 
$ 44 1
$ 42 1
$ 42 1
 
Granted (in dollars per share)
 
 
$ 62 1
$ 45 1
 
 
Vested (in dollars per share)
 
 
$ 44 1
$ 42 1
 
 
Forfeited (in dollars per share)
 
 
$ 45 1
$ 44 1
 
 
Non-vested at end of period (in dollars per share)
$ 50 1
$ 44 1
$ 50 1
$ 44 1
 
 
Target PSAs granted
 
 
3,505 
4,706 
 
 
Fair value
 
 
$ 62 1
$ 45 1
 
 
Performance share awards (“PSAs”) [Member]
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award
 
 
 
 
 
 
Share-based compensation expense
27 
13 
38 
15 
 
 
Non-vested share awards
 
 
 
 
 
 
Granted (in shares)
 
 
1,135 
 
1,369 
1,715 
Weighted Average Fair value
 
 
 
 
 
 
Granted (in dollars per share)
 
 
$ 58 2
 
$ 47 2
$ 50 2
Target PSAs granted
 
 
1,135 
 
1,369 
1,715 
Fair value
 
 
$ 58 2
 
$ 47 2
$ 50 2
Number of shares that would be issued based on current performance levels
 
 
1,135 
 
1,958 
1,339 
Unamortized expense, based on current performance levels
59 
 
59 
 
49 
11 
Stock options [Member]
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award
 
 
 
 
 
 
Share-based compensation expense
0 
1 
1 
3 
 
 
Employee stock purchase plans [Member]
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award
 
 
 
 
 
 
Share-based compensation expense
$ 1 
$ 2 
$ 3 
$ 4 
 
 
Minimum [Member] |
Performance share awards (“PSAs”) [Member]
 
 
 
 
 
 
Weighted Average Fair value
 
 
 
 
 
 
Vesting conditions period
 
 
1 year 
 
 
 
Percent of shares issued
0.00% 
 
0.00% 
 
 
 
Maximum [Member] |
Performance share awards (“PSAs”) [Member]
 
 
 
 
 
 
Weighted Average Fair value
 
 
 
 
 
 
Vesting conditions period
 
 
5 years 
 
 
 
Percent of shares issued
200.00% 
 
200.00% 
 
 
 
Share-Based Compensation Plans (Details 2) (Stock options [Member], USD $)
In Thousands, except Per Share data, unless otherwise specified
6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Stock options [Member]
 
 
Share Options
 
 
Outstanding at beginning of period (in shares)
5,611 
9,116 
Granted (in shares)
0 
0 
Exercised (in shares)
(1,318)
(1,584)
Forfeited and expired (in shares)
(2)
(51)
Outstanding at end of period (in shares)
4,291 
7,481 
Exercisable at end of period (in shares)
4,063 
6,931 
Weighted-Average Exercise Price
 
 
Outstanding at beginning of period (in dollars per share)
$ 32 
$ 32 
Granted (in dollars per share)
$ 0 
$ 0 
Exercised (in dollars per share)
$ 31 
$ 33 
Forfeited and expired (in dollars per share)
$ 33 
$ 37 
Outstanding at end of period (in dollars per share)
$ 33 
$ 32 
Exercisable at end of period (in dollars per share)
$ 32 
$ 31 
Weighted average remaining contractual life of share options outstanding (in years)
2 years 4 months 24 days 
2 years 4 months 24 days 
Share-Based Compensation Plans (Details 3) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
 
 
 
 
Closing share price (in dollars per share)
$ 64.35 
 
$ 64.35 
 
Aggregate intrinsic value of options outstanding
$ 136 
 
$ 136 
 
Aggregate intrinsic value of exercisable options outstanding
131 
 
131 
 
Aggregate intrinsic value of stock options exercised
22 
11 
39 
24 
Cash received from the exercise of stock options
21 
14 
41 
51 
Tax benefit realized from the exercise of stock options
4 
1 
7 
2 
Unamortized deferred compensation expense
$ 411 
 
$ 411 
 
Remaining weighted-average amortization period (in years)
 
 
2 years 2 months 12 days 
 
Derivatives and Hedging (Details)
6 Months Ended
Jun. 30, 2013
Cash flow hedges [Member]
 
Foreign Exchange Risk Management
 
Foreign currency exposures, maximum average hedging period
2 years 
Foreign currency exposures, maximum hedging period
5 years 
Interest Rate Risk Management
 
Interest rate fluctuations, maximum hedging period
2 years 
Net investment hedges [Member]
 
Foreign Exchange Risk Management
 
Foreign currency exposures, maximum hedging period
2 years 
Not designated as hedging instrument [Member]
 
Foreign Exchange Risk Management
 
Foreign currency exposures, maximum hedging period
1 year 
Derivatives and Hedging (Details 2) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2013
Dec. 31, 2012
Derivatives, Fair Value
 
 
Notional Amount
$ 1,692 
$ 1,849 
Derivative Assets
56 
210 
Derivative Liabilities
111 
251 
Gross Amounts Offset in the Statement of Financial Position
(20)
(160)
Net Amounts of Assets Presented in the Statement of Financial Position
36 1
50 1
Gross Amounts Offset in the Statement of Financial Position
(20)
(160)
Net Amounts of Liabilities Presented in the Statement of Financial Position
91 2
91 2
Derivatives accounted for as hedges [Member]
 
 
Derivatives, Fair Value
 
 
Notional Amount
1,397 
1,544 
Derivative Assets
55 
208 
Derivative Liabilities
110 
250 
Gross Amounts Offset in the Statement of Financial Position
(20)
(160)
Net Amounts of Assets Presented in the Statement of Financial Position
35 1
48 1
Gross Amounts Offset in the Statement of Financial Position
(20)
(160)
Net Amounts of Liabilities Presented in the Statement of Financial Position
90 2
90 2
Interest rate contracts [Member] |
Derivatives accounted for as hedges [Member]
 
 
Derivatives, Fair Value
 
 
Notional Amount
325 
336 
Derivative Assets
16 
17 
Derivative Liabilities
0 
0 
Gross Amounts Offset in the Statement of Financial Position
0 
0 
Net Amounts of Assets Presented in the Statement of Financial Position
16 1
17 1
Gross Amounts Offset in the Statement of Financial Position
0 
0 
Net Amounts of Liabilities Presented in the Statement of Financial Position
0 2
0 2
Foreign exchange contracts [Member] |
Derivatives accounted for as hedges [Member]
 
 
Derivatives, Fair Value
 
 
Notional Amount
1,072 
1,208 
Derivative Assets
39 
191 
Derivative Liabilities
110 
250 
Gross Amounts Offset in the Statement of Financial Position
(20)
(160)
Net Amounts of Assets Presented in the Statement of Financial Position
19 1
31 1
Gross Amounts Offset in the Statement of Financial Position
(20)
(160)
Net Amounts of Liabilities Presented in the Statement of Financial Position
90 2
90 2
Foreign exchange contracts [Member] |
Derivatives not accounted for as hedges [Member]
 
 
Derivatives, Fair Value
 
 
Notional Amount
295 
305 
Derivative Assets
1 
2 
Derivative Liabilities
1 
1 
Gross Amounts Offset in the Statement of Financial Position
0 
0 
Net Amounts of Assets Presented in the Statement of Financial Position
1 1
2 1
Gross Amounts Offset in the Statement of Financial Position
0 
0 
Net Amounts of Liabilities Presented in the Statement of Financial Position
$ 1 2
$ 1 2
Derivatives and Hedging (Details 3) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Derivative Instruments, Gain (Loss)
 
 
 
 
Amount of Gain (Loss) Recognized in Income on Derivative
$ 9 
$ (2)
$ (9)
$ 0 
Estimated pretax losses currently included within Accumulated Other Comprehensive Loss that will be reclassified to earnings in next twelve months
33 
 
33 
 
Derivatives accounted for as hedges [Member] |
Cash flow hedges [Member]
 
 
 
 
Derivative Instruments, Gain (Loss)
 
 
 
 
Amount of Gain (Loss) recognized in Accumulated Other Comprehensive Loss
0 
(32)
(29)
(30)
Amount of Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into income (effective portion)
14 
(8)
2 
(16)
Interest rate contracts [Member] |
Derivatives accounted for as hedges [Member] |
Cash flow hedges [Member]
 
 
 
 
Derivative Instruments, Gain (Loss)
 
 
 
 
Amount of Gain (Loss) recognized in Accumulated Other Comprehensive Loss
0 
0 
0 
0 
Amount of Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into income (effective portion)
0 1
0 1
(1)2
0 2
Foreign exchange contracts [Member] |
Derivatives accounted for as hedges [Member]
 
 
 
 
Derivative Instruments, Gain (Loss)
 
 
 
 
Amount of Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into income (effective portion)
0 
0 
0 
0 
Amount of Gain (Loss) Recognized in Income on Derivative
 
 
(1)3 4
3 3 4
Amount of Gain (Loss) Recognized in Income on Related Hedged Item
 
 
1 3 4
 
Foreign exchange contracts [Member] |
Derivatives accounted for as hedges [Member] |
Cash flow hedges [Member]
 
 
 
 
Derivative Instruments, Gain (Loss)
 
 
 
 
Amount of Gain (Loss) recognized in Accumulated Other Comprehensive Loss
0 
(32)
(29)
(30)
Amount of Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into income (effective portion)
14 5
(8)5
3 5
(16)5
Foreign exchange contracts [Member] |
Derivatives accounted for as hedges [Member] |
Net Investment Hedges [Member]
 
 
 
 
Derivative Instruments, Gain (Loss)
 
 
 
 
Amount of Gain (Loss) recognized in Accumulated Other Comprehensive Loss
0 
11 
0 
1 
Foreign exchange contracts [Member] |
Derivatives accounted for as hedges [Member] |
Fair value hedges
 
 
 
 
Derivative Instruments, Gain (Loss)
 
 
 
 
Amount of Gain (Loss) Recognized in Income on Derivative
0 3 4
1 3 4
 
 
Amount of Gain (Loss) Recognized in Income on Related Hedged Item
0 4
(1)4
 
(3)3 4
Foreign exchange contracts [Member] |
Derivatives not accounted for as hedges [Member]
 
 
 
 
Derivative Instruments, Gain (Loss)
 
 
 
 
Amount of Gain (Loss) Recognized in Income on Derivative
$ (9)
$ 1 
$ (18)
$ 7 
Fair Value and Financial Instruments (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
6 Months Ended
Jun. 30, 2013
Jun. 30, 2013
Fair Value [Member]
Money market funds and highly liquid debt securities
Recurring [Member]
Dec. 31, 2012
Fair Value [Member]
Money market funds and highly liquid debt securities
Recurring [Member]
Jun. 30, 2013
Fair Value [Member]
Money market funds [Member]
Recurring [Member]
Dec. 31, 2012
Fair Value [Member]
Money market funds [Member]
Recurring [Member]
Jun. 30, 2013
Fair Value [Member]
Highly liquid debt securities [Member]
Recurring [Member]
Dec. 31, 2012
Fair Value [Member]
Highly liquid debt securities [Member]
Recurring [Member]
Jun. 30, 2013
Fair Value [Member]
Corporate bonds [Member]
Recurring [Member]
Dec. 31, 2012
Fair Value [Member]
Corporate bonds [Member]
Recurring [Member]
Jun. 30, 2013
Fair Value [Member]
Government bonds [Member]
Recurring [Member]
Dec. 31, 2012
Fair Value [Member]
Government bonds [Member]
Recurring [Member]
Jun. 30, 2013
Fair Value [Member]
Equity securities [Member]
Recurring [Member]
Dec. 31, 2012
Fair Value [Member]
Equity securities [Member]
Recurring [Member]
Jun. 30, 2013
Fair Value [Member]
Interest rate contracts [Member]
Recurring [Member]
Dec. 31, 2012
Fair Value [Member]
Interest rate contracts [Member]
Recurring [Member]
Jun. 30, 2013
Fair Value [Member]
Foreign exchange contracts [Member]
Recurring [Member]
Dec. 31, 2012
Fair Value [Member]
Foreign exchange contracts [Member]
Recurring [Member]
Jun. 30, 2013
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Money market funds and highly liquid debt securities
Recurring [Member]
Dec. 31, 2012
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Money market funds and highly liquid debt securities
Recurring [Member]
Jun. 30, 2013
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Corporate bonds [Member]
Recurring [Member]
Dec. 31, 2012
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Corporate bonds [Member]
Recurring [Member]
Jun. 30, 2013
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Government bonds [Member]
Recurring [Member]
Dec. 31, 2012
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Government bonds [Member]
Recurring [Member]
Jun. 30, 2013
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Equity securities [Member]
Recurring [Member]
Dec. 31, 2012
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Equity securities [Member]
Recurring [Member]
Jun. 30, 2013
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Interest rate contracts [Member]
Recurring [Member]
Dec. 31, 2012
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Interest rate contracts [Member]
Recurring [Member]
Jun. 30, 2013
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Foreign exchange contracts [Member]
Recurring [Member]
Dec. 31, 2012
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Foreign exchange contracts [Member]
Recurring [Member]
Jun. 30, 2013
Significant Other Observable Inputs (Level 2) [Member]
Money market funds and highly liquid debt securities
Recurring [Member]
Dec. 31, 2012
Significant Other Observable Inputs (Level 2) [Member]
Money market funds and highly liquid debt securities
Recurring [Member]
Jun. 30, 2013
Significant Other Observable Inputs (Level 2) [Member]
Corporate bonds [Member]
Recurring [Member]
Dec. 31, 2012
Significant Other Observable Inputs (Level 2) [Member]
Corporate bonds [Member]
Recurring [Member]
Jun. 30, 2013
Significant Other Observable Inputs (Level 2) [Member]
Government bonds [Member]
Recurring [Member]
Dec. 31, 2012
Significant Other Observable Inputs (Level 2) [Member]
Government bonds [Member]
Recurring [Member]
Jun. 30, 2013
Significant Other Observable Inputs (Level 2) [Member]
Equity securities [Member]
Recurring [Member]
Dec. 31, 2012
Significant Other Observable Inputs (Level 2) [Member]
Equity securities [Member]
Recurring [Member]
Jun. 30, 2013
Significant Other Observable Inputs (Level 2) [Member]
Interest rate contracts [Member]
Recurring [Member]
Dec. 31, 2012
Significant Other Observable Inputs (Level 2) [Member]
Interest rate contracts [Member]
Recurring [Member]
Jun. 30, 2013
Significant Other Observable Inputs (Level 2) [Member]
Foreign exchange contracts [Member]
Recurring [Member]
Dec. 31, 2012
Significant Other Observable Inputs (Level 2) [Member]
Foreign exchange contracts [Member]
Recurring [Member]
Jun. 30, 2013
Significant Unobservable Inputs (Level 3) [Member]
Money market funds and highly liquid debt securities
Recurring [Member]
Dec. 31, 2012
Significant Unobservable Inputs (Level 3) [Member]
Money market funds and highly liquid debt securities
Recurring [Member]
Jun. 30, 2013
Significant Unobservable Inputs (Level 3) [Member]
Corporate bonds [Member]
Recurring [Member]
Dec. 31, 2012
Significant Unobservable Inputs (Level 3) [Member]
Corporate bonds [Member]
Recurring [Member]
Jun. 30, 2013
Significant Unobservable Inputs (Level 3) [Member]
Government bonds [Member]
Recurring [Member]
Dec. 31, 2012
Significant Unobservable Inputs (Level 3) [Member]
Government bonds [Member]
Recurring [Member]
Jun. 30, 2013
Significant Unobservable Inputs (Level 3) [Member]
Equity securities [Member]
Recurring [Member]
Dec. 31, 2012
Significant Unobservable Inputs (Level 3) [Member]
Equity securities [Member]
Recurring [Member]
Jun. 30, 2013
Significant Unobservable Inputs (Level 3) [Member]
Interest rate contracts [Member]
Recurring [Member]
Dec. 31, 2012
Significant Unobservable Inputs (Level 3) [Member]
Interest rate contracts [Member]
Recurring [Member]
Jun. 30, 2013
Significant Unobservable Inputs (Level 3) [Member]
Foreign exchange contracts [Member]
Recurring [Member]
Dec. 31, 2012
Significant Unobservable Inputs (Level 3) [Member]
Foreign exchange contracts [Member]
Recurring [Member]
Fair Value Disclosures [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net assets value (in dollar per share)
$ 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Money market funds and highly liquid debt securities
 
$ 2,438 1
$ 2,133 2
$ 2,413 
$ 2,108 
$ 25 
$ 25 
 
 
 
 
 
 
 
 
 
 
$ 2,413 1
$ 2,108 2
 
 
 
 
 
 
 
 
 
 
$ 25 1
$ 25 2
 
 
 
 
 
 
 
 
 
 
$ 0 1
$ 0 2
 
 
 
 
 
 
 
 
 
 
Other investments
 
 
 
 
 
 
 
18 
12 
7 
8 
28 
5 
 
 
 
 
 
 
0 
0 
0 
0 
28 
5 
 
 
 
 
 
 
0 
0 
7 
8 
0 
0 
 
 
 
 
 
 
18 
12 
0 
0 
0 
0 
 
 
 
 
Derivatives
 
 
 
 
 
 
 
 
 
 
 
 
 
16 
17 
40 
193 
 
 
 
 
 
 
 
 
0 
0 
0 
0 
 
 
 
 
 
 
 
 
16 
17 
40 
193 
 
 
 
 
 
 
 
 
0 
0 
0 
0 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 111 
$ 251 
 
 
 
 
 
 
 
 
 
 
$ 0 
$ 0 
 
 
 
 
 
 
 
 
 
 
$ 111 
$ 251 
 
 
 
 
 
 
 
 
 
 
$ 0 
$ 0 
Fair Value and Financial Instruments (Details 2) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended 15 Months Ended
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Dec. 31, 2012
Fair Value Disclosures [Abstract]
 
 
 
 
 
Unrealized gain
$ 0 
$ 6 
$ 0 
$ 6 
 
Realized gain (loss)
0 
 
0 
 
 
Fair value of financial instrument
 
 
 
 
 
Carrying value of total debt
 
4,012 
 
4,012 
3,713 
Fair value of total debt
 
$ 4,289 
 
$ 4,289 
$ 4,162 
Commitments and Contingencies (Details)
1 Months Ended 3 Months Ended 6 Months Ended 0 Months Ended
Jun. 30, 2013
USD ($)
Dec. 31, 2012
USD ($)
May 31, 2010
Opry Mills Mall Limited Partnership [Member]
USD ($)
Dec. 31, 2012
Mazeikiu Nafta [Member]
USD ($)
Jun. 30, 2013
Commitments to fund certain limited partnerships or subsidiaries [Member]
USD ($)
Jun. 30, 2013
Commitments to fund certain limited partnerships or subsidiaries [Member]
USD ($)
Apr. 2, 2012
Commitments to fund certain limited partnerships or subsidiaries [Member]
Subsidiaries [Member]
Term Credit Agreement [Member]
USD ($)
Mar. 20, 2012
Commitments to fund certain limited partnerships or subsidiaries [Member]
Subsidiaries [Member]
Five-Year Agreement [Member]
Apr. 2, 2012
Commitments to fund certain limited partnerships or subsidiaries [Member]
Subsidiaries [Member]
Five-Year Agreement [Member]
USD ($)
Apr. 2, 2012
Commitments to fund certain limited partnerships or subsidiaries [Member]
Subsidiaries [Member]
Euro Facility Agreement [Member]
EUR (€)
Legal, Guarantees and Indemnifications
 
 
 
 
 
 
 
 
 
 
Damages sought
 
 
$ 200,000,000 
$ 125,000,000 
 
 
 
 
 
 
Amount of coverage for damages contended by the insurers
 
 
50,000,000 
 
 
 
 
 
 
 
Difference amount of damages sought by the client
 
 
150,000,000 
 
 
 
 
 
 
 
Maximum potential funding under commitments
95,000,000 
104,000,000 
 
 
42,000,000 
42,000,000 
450,000,000 
 
400,000,000 
650,000,000 
Term of credit agreement
 
 
 
 
 
 
 
5 years 
 
 
Letters of credit outstanding
69,000,000 
74,000,000 
 
 
 
 
 
 
 
 
Commitments funded
 
 
 
 
$ 3,000,000 
$ 6,000,000 
 
 
 
 
Segment Information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
segment
Jun. 30, 2012
Segment Reporting Information
 
 
 
 
Number of reportable segments
 
 
2 
 
Total revenue
$ 2,897 
$ 2,821 
$ 5,812 
$ 5,662 
Total commissions, fees and other revenue
2,891 
2,813 
5,799 
5,642 
Total fiduciary investment income
6 
8 
13 
20 
Operating income before income tax
382 
394 
792 
796 
Interest income
2 
2 
3 
5 
Interest expense
(48)
(57)
(100)
(116)
Other income
6 
12 
15 
12 
Income from continuing operations before income taxes
342 
351 
710 
697 
Total operating segments [Member]
 
 
 
 
Segment Reporting Information
 
 
 
 
Operating income before income tax
427 
442 
881 
881 
Risk Solutions [Member]
 
 
 
 
Segment Reporting Information
 
 
 
 
Total revenue
1,944 
1,899 
3,915 
3,804 
Total commissions, fees and other revenue
1,938 
1,891 
3,902 
3,784 
Total fiduciary investment income
6 
8 
13 
20 
Operating income before income tax
391 
384 
794 
750 
Retail brokerage
 
 
 
 
Segment Reporting Information
 
 
 
 
Total commissions, fees and other revenue
1,562 
1,511 
3,124 
3,005 
Reinsurance brokerage
 
 
 
 
Segment Reporting Information
 
 
 
 
Total commissions, fees and other revenue
376 
380 
778 
779 
HR Solutions [Member]
 
 
 
 
Segment Reporting Information
 
 
 
 
Total revenue
956 
931 
1,910 
1,876 
Total commissions, fees and other revenue
956 
931 
1,910 
1,876 
Total fiduciary investment income
0 
0 
0 
0 
Operating income before income tax
36 
58 
87 
131 
Consulting services
 
 
 
 
Segment Reporting Information
 
 
 
 
Total commissions, fees and other revenue
388 
366 
770 
746 
Outsourcing
 
 
 
 
Segment Reporting Information
 
 
 
 
Total commissions, fees and other revenue
578 
570 
1,159 
1,138 
Intrasegment
 
 
 
 
Segment Reporting Information
 
 
 
 
Total commissions, fees and other revenue
(10)
(5)
(19)
(8)
Intersegment elimination
 
 
 
 
Segment Reporting Information
 
 
 
 
Total revenue
(3)
(9)
(13)
(18)
Total commissions, fees and other revenue
(3)
(9)
(13)
(18)
Unallocated Expense
 
 
 
 
Segment Reporting Information
 
 
 
 
Operating income before income tax
$ (45)
$ (48)
$ (89)
$ (85)
Guarantee of Registered Securities Guarantee of Registered Securities (Narrative) (Details)
Jun. 30, 2013
Aon plc [Member]
 
Condensed Financial Statements, Captions [Line Items]
 
Parent company's percentage ownership of guarantors
100.00% 
3.50% senior notes due September 2015 [Member]
 
Condensed Financial Statements, Captions [Line Items]
 
Stated interest rate
3.50% 
3.125% Senior notes due 2016 [Member]
 
Condensed Financial Statements, Captions [Line Items]
 
Stated interest rate
3.125% 
5.00% Senior notes due September 2020 [Member]
 
Condensed Financial Statements, Captions [Line Items]
 
Stated interest rate
5.00% 
8.205% Junior subordinated deferrable interest debentures due January 2027 [Member]
 
Condensed Financial Statements, Captions [Line Items]
 
Stated interest rate
8.205% 
6.25% Senior notes due September 2040 [Member]
 
Condensed Financial Statements, Captions [Line Items]
 
Stated interest rate
6.25% 
4.250% Senior notes due 2042 [Member]
 
Condensed Financial Statements, Captions [Line Items]
 
Stated interest rate
4.25% 
4.45% notes due 2043 [Member]
 
Condensed Financial Statements, Captions [Line Items]
 
Stated interest rate
4.45% 
Guarantee of Registered Securities - Condensed Consolidating Statement of Income (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Revenue
 
 
 
 
Commissions, fees and other
$ 2,891 
$ 2,813 
$ 5,799 
$ 5,642 
Fiduciary investment income
6 
8 
13 
20 
Total revenue
2,897 
2,821 
5,812 
5,662 
Expenses
 
 
 
 
Compensation and benefits
1,712 
1,639 
3,437 
3,300 
Other general expenses
803 
788 
1,583 
1,566 
Total operating expenses
2,515 
2,427 
5,020 
4,866 
Operating income
382 
394 
792 
796 
Interest income
2 
2 
3 
5 
Interest expense
(48)
(57)
(100)
(116)
Intercompany interest (expense) income
0 
0 
0 
0 
Other income
6 
12 
15 
12 
Income from continuing operations before income taxes
342 
351 
710 
697 
Income tax (benefit) expense
90 
96 
186 
193 
Income from continuing operations
252 
255 
524 
504 
Loss from discontinued operations before income taxes
0 
(1)
0 
(1)
Income taxes
0 
0 
0 
0 
Loss from discontinued operations
0 
(1)
0 
(1)
Equity in earnings of subsidiaries, net of tax
0 
0 
0 
0 
Net income
252 
254 
524 
503 
Less: Net income attributable to noncontrolling interests
11 
8 
22 
19 
Net income attributable to Aon shareholders
241 
246 
502 
484 
Aon plc [Member]
 
 
 
 
Revenue
 
 
 
 
Commissions, fees and other
1 
0 
2 
0 
Fiduciary investment income
0 
0 
0 
0 
Total revenue
1 
0 
2 
0 
Expenses
 
 
 
 
Compensation and benefits
4 
2 
15 
2 
Other general expenses
9 
10 
16 
10 
Total operating expenses
13 
12 
31 
12 
Operating income
(12)
(12)
(29)
(12)
Interest income
0 
0 
0 
0 
Interest expense
(4)
0 
(6)
0 
Intercompany interest (expense) income
(7)
(3)
(14)
(3)
Other income
0 
0 
0 
0 
Income from continuing operations before income taxes
(23)
(15)
(49)
(15)
Income tax (benefit) expense
(3)
(1)
(9)
(1)
Income from continuing operations
(20)
(14)
(40)
(14)
Loss from discontinued operations before income taxes
0 
0 
0 
0 
Income taxes
0 
0 
0 
0 
Loss from discontinued operations
0 
0 
0 
0 
Equity in earnings of subsidiaries, net of tax
261 
260 
542 
498 
Net income
241 
246 
502 
484 
Less: Net income attributable to noncontrolling interests
0 
0 
0 
0 
Net income attributable to Aon shareholders
241 
246 
502 
484 
Aon Corporation [Member]
 
 
 
 
Revenue
 
 
 
 
Commissions, fees and other
0 
0 
0 
0 
Fiduciary investment income
0 
0 
0 
1 
Total revenue
0 
0 
0 
1 
Expenses
 
 
 
 
Compensation and benefits
5 
0 
21 
67 
Other general expenses
17 
7 
23 
21 
Total operating expenses
22 
7 
44 
88 
Operating income
(22)
(7)
(44)
(87)
Interest income
1 
0 
1 
0 
Interest expense
(33)
(40)
(67)
(80)
Intercompany interest (expense) income
43 
47 
86 
93 
Other income
(2)
(5)
(3)
3 
Income from continuing operations before income taxes
(13)
(5)
(27)
(71)
Income tax (benefit) expense
(6)
(2)
(11)
(27)
Income from continuing operations
(7)
(3)
(16)
(44)
Loss from discontinued operations before income taxes
0 
0 
0 
0 
Income taxes
0 
0 
0 
0 
Loss from discontinued operations
0 
0 
0 
0 
Equity in earnings of subsidiaries, net of tax
246 
234 
509 
484 
Net income
239 
231 
493 
440 
Less: Net income attributable to noncontrolling interests
0 
0 
0 
0 
Net income attributable to Aon shareholders
239 
231 
493 
440 
Other Non-Guarantor Subsidiaries [Member]
 
 
 
 
Revenue
 
 
 
 
Commissions, fees and other
2,890 
2,813 
5,797 
5,642 
Fiduciary investment income
6 
8 
13 
19 
Total revenue
2,896 
2,821 
5,810 
5,661 
Expenses
 
 
 
 
Compensation and benefits
1,703 
1,637 
3,401 
3,231 
Other general expenses
777 
771 
1,544 
1,535 
Total operating expenses
2,480 
2,408 
4,945 
4,766 
Operating income
416 
413 
865 
895 
Interest income
1 
2 
2 
5 
Interest expense
(11)
(17)
(27)
(36)
Intercompany interest (expense) income
(36)
(44)
(72)
(90)
Other income
8 
17 
18 
9 
Income from continuing operations before income taxes
378 
371 
786 
783 
Income tax (benefit) expense
99 
99 
206 
221 
Income from continuing operations
279 
272 
580 
562 
Loss from discontinued operations before income taxes
0 
(1)
0 
(1)
Income taxes
0 
0 
0 
0 
Loss from discontinued operations
0 
(1)
0 
(1)
Equity in earnings of subsidiaries, net of tax
239 
231 
493 
440 
Net income
518 
502 
1,073 
1,001 
Less: Net income attributable to noncontrolling interests
11 
8 
22 
19 
Net income attributable to Aon shareholders
507 
494 
1,051 
982 
Consolidating Adjustments [Member]
 
 
 
 
Revenue
 
 
 
 
Commissions, fees and other
0 
0 
0 
0 
Fiduciary investment income
0 
0 
0 
0 
Total revenue
0 
0 
0 
0 
Expenses
 
 
 
 
Compensation and benefits
0 
0 
0 
0 
Other general expenses
0 
0 
0 
0 
Total operating expenses
0 
0 
0 
0 
Operating income
0 
0 
0 
0 
Interest income
0 
0 
0 
0 
Interest expense
0 
0 
0 
0 
Intercompany interest (expense) income
0 
0 
0 
0 
Other income
0 
0 
0 
0 
Income from continuing operations before income taxes
0 
0 
0 
0 
Income tax (benefit) expense
0 
0 
0 
0 
Income from continuing operations
0 
0 
0 
0 
Loss from discontinued operations before income taxes
0 
0 
0 
0 
Income taxes
0 
0 
0 
0 
Loss from discontinued operations
0 
0 
0 
0 
Equity in earnings of subsidiaries, net of tax
(746)
(725)
(1,544)
(1,422)
Net income
(746)
(725)
(1,544)
(1,422)
Less: Net income attributable to noncontrolling interests
0 
0 
0 
0 
Net income attributable to Aon shareholders
(746)
(725)
(1,544)
(1,422)
Pro Forma [Member]
 
 
 
 
Expenses
 
 
 
 
Income from continuing operations
252 
255 
524 
504 
Loss from discontinued operations
0 
(1)
0 
(1)
Equity in earnings of subsidiaries, net of tax
0 
0 
0 
0 
Net income
252 
254 
524 
503 
Less: Net income attributable to noncontrolling interests
11 
8 
22 
19 
Net income attributable to Aon shareholders
241 
246 
502 
484 
Pro Forma [Member] |
Aon plc [Member]
 
 
 
 
Expenses
 
 
 
 
Income from continuing operations
(20)
(14)
(40)
(14)
Loss from discontinued operations
0 
0 
0 
0 
Equity in earnings of subsidiaries, net of tax
261 
260 
542 
498 
Net income
241 
246 
502 
484 
Less: Net income attributable to noncontrolling interests
0 
0 
0 
0 
Net income attributable to Aon shareholders
241 
246 
502 
484 
Pro Forma [Member] |
Aon Corporation [Member]
 
 
 
 
Expenses
 
 
 
 
Income from continuing operations
(7)
(3)
(16)
(44)
Loss from discontinued operations
0 
0 
0 
0 
Equity in earnings of subsidiaries, net of tax
246 
234 
509 
484 
Net income
239 
231 
493 
440 
Less: Net income attributable to noncontrolling interests
0 
0 
0 
0 
Net income attributable to Aon shareholders
239 
231 
493 
440 
Pro Forma [Member] |
Other Non-Guarantor Subsidiaries [Member]
 
 
 
 
Expenses
 
 
 
 
Income from continuing operations
279 
272 
580 
562 
Loss from discontinued operations
0 
(1)
0 
(1)
Equity in earnings of subsidiaries, net of tax
0 
0 
0 
0 
Net income
279 
271 
580 
561 
Less: Net income attributable to noncontrolling interests
11 
8 
22 
19 
Net income attributable to Aon shareholders
268 
263 
558 
542 
Pro Forma [Member] |
Consolidating Adjustments [Member]
 
 
 
 
Expenses
 
 
 
 
Income from continuing operations
0 
0 
0 
0 
Loss from discontinued operations
0 
0 
0 
0 
Equity in earnings of subsidiaries, net of tax
(507)
(494)
(1,051)
(982)
Net income
(507)
(494)
(1,051)
(982)
Less: Net income attributable to noncontrolling interests
0 
0 
0 
0 
Net income attributable to Aon shareholders
$ (507)
$ (494)
$ (1,051)
$ (982)
Guarantee of Registered Securities Guarantee of Registered Securities - Condensed Consolidating Statement of Comprehensive Income (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
Net income
$ 252 
$ 254 
$ 524 
$ 503 
Less: Net income attributable to noncontrolling interests
11 
8 
22 
19 
Net income attributable to Aon shareholders
241 
246 
502 
484 
Change in fair value of investments
13 
0 
13 
0 
Change in fair value of derivatives
(7)
(17)
(21)
(10)
Foreign currency translation adjustments
(58)
(197)
(232)
(93)
Post-retirement benefit obligation
18 
18 
41 
39 
Total other comprehensive loss
(34)
(196)
(199)
(64)
Equity in other comprehensive loss of subsidiaries, net of tax
0 
0 
0 
0 
Less: Other comprehensive loss attributable to noncontrolling interests
(2)
(3)
(2)
(2)
Total other comprehensive loss attributable to Aon shareholders
(32)
(193)
(197)
(62)
Comprehensive income attributable to Aon shareholders
209 
53 
305 
422 
Aon plc [Member]
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
Net income
241 
246 
502 
484 
Less: Net income attributable to noncontrolling interests
0 
0 
0 
0 
Net income attributable to Aon shareholders
241 
246 
502 
484 
Change in fair value of investments
0 
0 
0 
0 
Change in fair value of derivatives
0 
0 
0 
0 
Foreign currency translation adjustments
0 
0 
0 
0 
Post-retirement benefit obligation
0 
0 
0 
0 
Total other comprehensive loss
0 
0 
0 
0 
Equity in other comprehensive loss of subsidiaries, net of tax
(32)
(193)
(197)
(62)
Less: Other comprehensive loss attributable to noncontrolling interests
0 
0 
0 
0 
Total other comprehensive loss attributable to Aon shareholders
(32)
(193)
(197)
(62)
Comprehensive income attributable to Aon shareholders
209 
53 
305 
422 
Aon Corporation [Member]
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
Net income
239 
231 
493 
440 
Less: Net income attributable to noncontrolling interests
0 
0 
0 
0 
Net income attributable to Aon shareholders
239 
231 
493 
440 
Change in fair value of investments
4 
0 
4 
0 
Change in fair value of derivatives
2 
0 
3 
0 
Foreign currency translation adjustments
(11)
(5)
(19)
(1)
Post-retirement benefit obligation
7 
9 
15 
15 
Total other comprehensive loss
2 
4 
3 
14 
Equity in other comprehensive loss of subsidiaries, net of tax
(34)
(193)
(200)
(77)
Less: Other comprehensive loss attributable to noncontrolling interests
0 
0 
0 
0 
Total other comprehensive loss attributable to Aon shareholders
(32)
(189)
(197)
(63)
Comprehensive income attributable to Aon shareholders
207 
42 
296 
377 
Other Non-Guarantor Subsidiaries [Member]
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
Net income
518 
502 
1,073 
1,001 
Less: Net income attributable to noncontrolling interests
11 
8 
22 
19 
Net income attributable to Aon shareholders
507 
494 
1,051 
982 
Change in fair value of investments
9 
0 
9 
0 
Change in fair value of derivatives
(9)
(17)
(24)
(10)
Foreign currency translation adjustments
(47)
(192)
(213)
(92)
Post-retirement benefit obligation
11 
9 
26 
24 
Total other comprehensive loss
(36)
(200)
(202)
(78)
Equity in other comprehensive loss of subsidiaries, net of tax
(32)
(189)
(197)
(63)
Less: Other comprehensive loss attributable to noncontrolling interests
(2)
(3)
(2)
(2)
Total other comprehensive loss attributable to Aon shareholders
(66)
(386)
(397)
(139)
Comprehensive income attributable to Aon shareholders
441 
108 
654 
843 
Consolidating Adjustments [Member]
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
Net income
(746)
(725)
(1,544)
(1,422)
Less: Net income attributable to noncontrolling interests
0 
0 
0 
0 
Net income attributable to Aon shareholders
(746)
(725)
(1,544)
(1,422)
Change in fair value of investments
0 
0 
0 
0 
Change in fair value of derivatives
0 
0 
0 
0 
Foreign currency translation adjustments
0 
0 
0 
0 
Post-retirement benefit obligation
0 
0 
0 
0 
Total other comprehensive loss
0 
0 
0 
0 
Equity in other comprehensive loss of subsidiaries, net of tax
98 
575 
594 
202 
Less: Other comprehensive loss attributable to noncontrolling interests
0 
0 
0 
0 
Total other comprehensive loss attributable to Aon shareholders
98 
575 
594 
202 
Comprehensive income attributable to Aon shareholders
(648)
(150)
(950)
(1,220)
Pro Forma [Member]
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
Net income
252 
254 
524 
503 
Less: Net income attributable to noncontrolling interests
11 
8 
22 
19 
Net income attributable to Aon shareholders
241 
246 
502 
484 
Total other comprehensive loss
(34)
(196)
(199)
(64)
Equity in other comprehensive loss of subsidiaries, net of tax
0 
0 
0 
0 
Less: Other comprehensive loss attributable to noncontrolling interests
(2)
(3)
(2)
(2)
Total other comprehensive loss attributable to Aon shareholders
(32)
(193)
(197)
(62)
Comprehensive income attributable to Aon shareholders
209 
53 
305 
418 
Pro Forma [Member] |
Aon plc [Member]
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
Net income
241 
246 
502 
484 
Less: Net income attributable to noncontrolling interests
0 
0 
0 
0 
Net income attributable to Aon shareholders
241 
246 
502 
484 
Total other comprehensive loss
0 
0 
0 
0 
Equity in other comprehensive loss of subsidiaries, net of tax
(32)
(193)
(197)
(62)
Less: Other comprehensive loss attributable to noncontrolling interests
0 
0 
0 
0 
Total other comprehensive loss attributable to Aon shareholders
(32)
(193)
(197)
(62)
Comprehensive income attributable to Aon shareholders
209 
53 
305 
422 
Pro Forma [Member] |
Aon Corporation [Member]
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
Net income
239 
231 
493 
440 
Less: Net income attributable to noncontrolling interests
0 
0 
0 
0 
Net income attributable to Aon shareholders
239 
231 
493 
440 
Total other comprehensive loss
2 
4 
3 
14 
Equity in other comprehensive loss of subsidiaries, net of tax
(34)
(193)
(200)
(77)
Less: Other comprehensive loss attributable to noncontrolling interests
0 
0 
0 
0 
Total other comprehensive loss attributable to Aon shareholders
(32)
(189)
(197)
(63)
Comprehensive income attributable to Aon shareholders
207 
42 
296 
373 
Pro Forma [Member] |
Other Non-Guarantor Subsidiaries [Member]
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
Net income
279 
271 
580 
561 
Less: Net income attributable to noncontrolling interests
11 
8 
22 
19 
Net income attributable to Aon shareholders
268 
263 
558 
542 
Total other comprehensive loss
(36)
(200)
(202)
(78)
Equity in other comprehensive loss of subsidiaries, net of tax
0 
0 
0 
0 
Less: Other comprehensive loss attributable to noncontrolling interests
(2)
(3)
(2)
(2)
Total other comprehensive loss attributable to Aon shareholders
(34)
(197)
(200)
(76)
Comprehensive income attributable to Aon shareholders
234 
66 
358 
466 
Pro Forma [Member] |
Consolidating Adjustments [Member]
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
Net income
(507)
(494)
(1,051)
(982)
Less: Net income attributable to noncontrolling interests
0 
0 
0 
0 
Net income attributable to Aon shareholders
(507)
(494)
(1,051)
(982)
Total other comprehensive loss
0 
0 
0 
0 
Equity in other comprehensive loss of subsidiaries, net of tax
66 
386 
397 
139 
Less: Other comprehensive loss attributable to noncontrolling interests
0 
0 
0 
0 
Total other comprehensive loss attributable to Aon shareholders
66 
386 
397 
139 
Comprehensive income attributable to Aon shareholders
$ (441)
$ (108)
$ (654)
$ (843)
Guarantee of Registered Securities - Condensed Colsolidating Statement of Financial Position (Details) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2013
Dec. 31, 2012
Jun. 30, 2012
Dec. 31, 2011
CURRENT ASSETS :
 
 
 
 
Cash and cash equivalents
$ 266 
$ 291 
$ 286 
$ 272 
Short-term investments
307 
346 
 
 
Receivables, net
2,838 
3,101 
 
 
Fiduciary assets
12,576 
12,214 
 
 
Intercompany receivables
0 
0 
 
 
Other current assets
406 
430 
 
 
Total Current Assets
16,393 
16,382 
 
 
Goodwill
8,795 
8,943 
 
 
Intangible assets, net
2,736 
2,975 
 
 
Fixed assets, net
808 
820 
 
 
Investments
172 
165 
 
 
Intercompany receivables
0 
0 
 
 
Other non-current assets
1,158 
1,201 
 
 
Investment in subsidiary
0 
0 
 
 
TOTAL ASSETS
30,062 
30,486 
 
 
CURRENT LIABILITIES
 
 
 
 
Fiduciary liabilities
12,576 
12,214 
 
 
Short-term debt and current portion of long-term debt
427 
452 
 
 
Accounts payable and accrued liabilities
1,423 
1,853 
 
 
Intercompany payables
0 
0 
 
 
Other current liabilities
769 
831 
 
 
Total Current Liabilities
15,195 
15,350 
 
 
Long-term debt
4,012 
3,713 
 
 
Pension, other post-retirement and other post-employment liabilities
1,897 
2,276 
 
 
Intercompany payables
0 
0 
 
 
Other non-current liabilities
1,340 
1,342 
 
 
TOTAL LIABILITIES
22,444 
22,681 
 
 
TOTAL AON SHAREHOLDERS’ EQUITY
7,559 
7,762 
 
 
Noncontrolling interests
59 
43 
 
 
TOTAL EQUITY
7,618 
7,805 
 
 
TOTAL LIABILITIES AND EQUITY
30,062 
30,486 
 
 
Aon plc [Member]
 
 
 
 
CURRENT ASSETS :
 
 
 
 
Cash and cash equivalents
294 
131 
19 
0 
Short-term investments
0 
0 
 
 
Receivables, net
0 
5 
 
 
Fiduciary assets
0 
0 
 
 
Intercompany receivables
255 
0 
 
 
Other current assets
17 
7 
 
 
Total Current Assets
566 
143 
 
 
Goodwill
0 
0 
 
 
Intangible assets, net
0 
0 
 
 
Fixed assets, net
0 
0 
 
 
Investments
0 
0 
 
 
Intercompany receivables
166 
166 
 
 
Other non-current assets
119 
117 
 
 
Investment in subsidiary
10,879 
10,398 
 
 
TOTAL ASSETS
11,730 
10,824 
 
 
CURRENT LIABILITIES
 
 
 
 
Fiduciary liabilities
0 
0 
 
 
Short-term debt and current portion of long-term debt
297 
0 
 
 
Accounts payable and accrued liabilities
17 
10 
 
 
Intercompany payables
14 
51 
 
 
Other current liabilities
1 
0 
 
 
Total Current Liabilities
329 
61 
 
 
Long-term debt
443 
107 
 
 
Pension, other post-retirement and other post-employment liabilities
0 
0 
 
 
Intercompany payables
3,393 
2,890 
 
 
Other non-current liabilities
6 
4 
 
 
TOTAL LIABILITIES
4,171 
3,062 
 
 
TOTAL AON SHAREHOLDERS’ EQUITY
7,559 
7,762 
 
 
Noncontrolling interests
0 
0 
 
 
TOTAL EQUITY
7,559 
7,762 
 
 
TOTAL LIABILITIES AND EQUITY
11,730 
10,824 
 
 
Aon Corporation [Member]
 
 
 
 
CURRENT ASSETS :
 
 
 
 
Cash and cash equivalents
258 
199 
80 
(21)
Short-term investments
63 
89 
 
 
Receivables, net
(2)
1 
 
 
Fiduciary assets
0 
0 
 
 
Intercompany receivables
2,881 
2,092 
 
 
Other current assets
50 
53 
 
 
Total Current Assets
3,250 
2,434 
 
 
Goodwill
0 
0 
 
 
Intangible assets, net
0 
0 
 
 
Fixed assets, net
0 
0 
 
 
Investments
60 
49 
 
 
Intercompany receivables
2,093 
1,997 
 
 
Other non-current assets
739 
735 
 
 
Investment in subsidiary
11,057 
10,522 
 
 
TOTAL ASSETS
17,199 
15,737 
 
 
CURRENT LIABILITIES
 
 
 
 
Fiduciary liabilities
0 
0 
 
 
Short-term debt and current portion of long-term debt
107 
429 
 
 
Accounts payable and accrued liabilities
65 
71 
 
 
Intercompany payables
4,112 
2,637 
 
 
Other current liabilities
47 
49 
 
 
Total Current Liabilities
4,331 
3,186 
 
 
Long-term debt
2,515 
2,515 
 
 
Pension, other post-retirement and other post-employment liabilities
1,220 
1,294 
 
 
Intercompany payables
166 
166 
 
 
Other non-current liabilities
251 
254 
 
 
TOTAL LIABILITIES
8,483 
7,415 
 
 
TOTAL AON SHAREHOLDERS’ EQUITY
8,716 
8,322 
 
 
Noncontrolling interests
0 
0 
 
 
TOTAL EQUITY
8,716 
8,322 
 
 
TOTAL LIABILITIES AND EQUITY
17,199 
15,737 
 
 
Other Non-Guarantor Subsidiaries [Member]
 
 
 
 
CURRENT ASSETS :
 
 
 
 
Cash and cash equivalents
0 
0 
187 
293 
Short-term investments
244 
257 
 
 
Receivables, net
2,840 
3,095 
 
 
Fiduciary assets
12,576 
12,214 
 
 
Intercompany receivables
5,244 
3,545 
 
 
Other current assets
339 
370 
 
 
Total Current Assets
21,243 
19,481 
 
 
Goodwill
8,795 
8,943 
 
 
Intangible assets, net
2,736 
2,975 
 
 
Fixed assets, net
808 
820 
 
 
Investments
112 
116 
 
 
Intercompany receivables
2,196 
2,350 
 
 
Other non-current assets
403 
1,174 
 
 
Investment in subsidiary
8,716 
8,322 
 
 
TOTAL ASSETS
45,009 
44,181 
 
 
CURRENT LIABILITIES
 
 
 
 
Fiduciary liabilities
12,576 
12,214 
 
 
Short-term debt and current portion of long-term debt
23 
23 
 
 
Accounts payable and accrued liabilities
1,627 
1,811 
 
 
Intercompany payables
2,961 
2,162 
 
 
Other current liabilities
721 
779 
 
 
Total Current Liabilities
17,908 
16,989 
 
 
Long-term debt
1,054 
1,091 
 
 
Pension, other post-retirement and other post-employment liabilities
677 
982 
 
 
Intercompany payables
2,189 
2,247 
 
 
Other non-current liabilities
1,186 
1,909 
 
 
TOTAL LIABILITIES
23,014 
23,218 
 
 
TOTAL AON SHAREHOLDERS’ EQUITY
21,936 
20,920 
 
 
Noncontrolling interests
59 
43 
 
 
TOTAL EQUITY
21,995 
20,963 
 
 
TOTAL LIABILITIES AND EQUITY
45,009 
44,181 
 
 
Consolidating Adjustments [Member]
 
 
 
 
CURRENT ASSETS :
 
 
 
 
Cash and cash equivalents
(286)
(39)
0 
0 
Short-term investments
0 
0 
 
 
Receivables, net
0 
0 
 
 
Fiduciary assets
0 
0 
 
 
Intercompany receivables
(8,380)
(5,637)
 
 
Other current assets
0 
0 
 
 
Total Current Assets
(8,666)
(5,676)
 
 
Goodwill
0 
0 
 
 
Intangible assets, net
0 
0 
 
 
Fixed assets, net
0 
0 
 
 
Investments
0 
0 
 
 
Intercompany receivables
(4,455)
(4,513)
 
 
Other non-current assets
(103)
(825)
 
 
Investment in subsidiary
(30,652)
(29,242)
 
 
TOTAL ASSETS
(43,876)
(40,256)
 
 
CURRENT LIABILITIES
 
 
 
 
Fiduciary liabilities
0 
0 
 
 
Short-term debt and current portion of long-term debt
0 
0 
 
 
Accounts payable and accrued liabilities
(286)
(39)
 
 
Intercompany payables
(7,087)
(4,850)
 
 
Other current liabilities
0 
3 
 
 
Total Current Liabilities
(7,373)
(4,886)
 
 
Long-term debt
0 
0 
 
 
Pension, other post-retirement and other post-employment liabilities
0 
0 
 
 
Intercompany payables
(5,748)
(5,303)
 
 
Other non-current liabilities
(103)
(825)
 
 
TOTAL LIABILITIES
(13,224)
(11,014)
 
 
TOTAL AON SHAREHOLDERS’ EQUITY
(30,652)
(29,242)
 
 
Noncontrolling interests
0 
0 
 
 
TOTAL EQUITY
(30,652)
(29,242)
 
 
TOTAL LIABILITIES AND EQUITY
(43,876)
(40,256)
 
 
Pro Forma [Member]
 
 
 
 
CURRENT ASSETS :
 
 
 
 
Investment in subsidiary
0 
0 
 
 
CURRENT LIABILITIES
 
 
 
 
TOTAL AON SHAREHOLDERS’ EQUITY
7,559 
7,762 
 
 
Pro Forma [Member] |
Aon plc [Member]
 
 
 
 
CURRENT ASSETS :
 
 
 
 
Investment in subsidiary
10,879 
10,398 
 
 
CURRENT LIABILITIES
 
 
 
 
TOTAL AON SHAREHOLDERS’ EQUITY
7,559 
7,762 
 
 
Pro Forma [Member] |
Aon Corporation [Member]
 
 
 
 
CURRENT ASSETS :
 
 
 
 
Investment in subsidiary
11,057 
10,522 
 
 
CURRENT LIABILITIES
 
 
 
 
TOTAL AON SHAREHOLDERS’ EQUITY
8,716 
8,322 
 
 
Pro Forma [Member] |
Other Non-Guarantor Subsidiaries [Member]
 
 
 
 
CURRENT ASSETS :
 
 
 
 
Investment in subsidiary
0 
0 
 
 
CURRENT LIABILITIES
 
 
 
 
TOTAL AON SHAREHOLDERS’ EQUITY
13,220 
12,598 
 
 
Pro Forma [Member] |
Consolidating Adjustments [Member]
 
 
 
 
CURRENT ASSETS :
 
 
 
 
Investment in subsidiary
(21,936)
(20,920)
 
 
CURRENT LIABILITIES
 
 
 
 
TOTAL AON SHAREHOLDERS’ EQUITY
$ (21,936)
$ (20,920)
 
 
Guarantee of Registered Securities - Condensed Consolidating Statement of Cash Flows (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES
 
 
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES
$ 387 
$ 269 
CASH FLOWS FROM INVESTING ACTIVITIES
 
 
Sales of long-term investments
23 
51 
Purchases of long-term investments
(6)
(7)
Net (purchases) sales of short-term investments - non-fiduciary
29 
259 
Acquisition of businesses, net of cash acquired
(23)
(82)
Proceeds from sale of businesses
1 
1 
Capital expenditures
(122)
(129)
CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES
(98)
93 
CASH FLOWS FROM FINANCING ACTIVITIES
 
 
Share repurchase
(525)
(350)
Advances from (to) affiliates
0 
0 
Issuance of shares for employee benefit plans
57 
64 
Issuance of debt
2,914 
332 
Repayment of debt
(2,607)
(305)
Cash dividends to shareholders
(105)
(102)
Purchase of shares from noncontrolling interests
0 
1 
Dividends paid to noncontrolling interests
(6)
(6)
CASH USED FOR FINANCING ACTIVITIES
(272)
(366)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
(42)
18 
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
(25)
14 
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
291 
272 
CASH AND CASH EQUIVALENTS AT END OF PERIOD
266 
286 
Aon plc [Member]
 
 
CASH FLOWS FROM OPERATING ACTIVITIES
 
 
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES
(23)
(19)
CASH FLOWS FROM INVESTING ACTIVITIES
 
 
Sales of long-term investments
0 
0 
Purchases of long-term investments
0 
0 
Net (purchases) sales of short-term investments - non-fiduciary
0 
0 
Acquisition of businesses, net of cash acquired
0 
0 
Proceeds from sale of businesses
0 
0 
Capital expenditures
0 
0 
CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES
0 
0 
CASH FLOWS FROM FINANCING ACTIVITIES
 
 
Share repurchase
(525)
(250)
Advances from (to) affiliates
126 
325 
Issuance of shares for employee benefit plans
57 
15 
Issuance of debt
639 
0 
Repayment of debt
(6)
0 
Cash dividends to shareholders
(105)
(52)
Purchase of shares from noncontrolling interests
0 
0 
Dividends paid to noncontrolling interests
0 
0 
CASH USED FOR FINANCING ACTIVITIES
186 
38 
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
0 
0 
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
163 
19 
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
131 
0 
CASH AND CASH EQUIVALENTS AT END OF PERIOD
294 
19 
Aon Corporation [Member]
 
 
CASH FLOWS FROM OPERATING ACTIVITIES
 
 
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES
(89)
(99)
CASH FLOWS FROM INVESTING ACTIVITIES
 
 
Sales of long-term investments
2 
0 
Purchases of long-term investments
(6)
(7)
Net (purchases) sales of short-term investments - non-fiduciary
26 
211 
Acquisition of businesses, net of cash acquired
0 
(55)
Proceeds from sale of businesses
0 
0 
Capital expenditures
0 
0 
CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES
22 
149 
CASH FLOWS FROM FINANCING ACTIVITIES
 
 
Share repurchase
0 
(100)
Advances from (to) affiliates
444 
118 
Issuance of shares for employee benefit plans
0 
49 
Issuance of debt
2,044 
332 
Repayment of debt
(2,362)
(298)
Cash dividends to shareholders
0 
(50)
Purchase of shares from noncontrolling interests
0 
0 
Dividends paid to noncontrolling interests
0 
0 
CASH USED FOR FINANCING ACTIVITIES
126 
51 
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
0 
0 
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
59 
101 
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
199 
(21)
CASH AND CASH EQUIVALENTS AT END OF PERIOD
258 
80 
Other Non-Guarantor Subsidiaries [Member]
 
 
CASH FLOWS FROM OPERATING ACTIVITIES
 
 
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES
499 
387 
CASH FLOWS FROM INVESTING ACTIVITIES
 
 
Sales of long-term investments
21 
51 
Purchases of long-term investments
0 
0 
Net (purchases) sales of short-term investments - non-fiduciary
3 
48 
Acquisition of businesses, net of cash acquired
(23)
(27)
Proceeds from sale of businesses
1 
1 
Capital expenditures
(122)
(129)
CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES
(120)
(56)
CASH FLOWS FROM FINANCING ACTIVITIES
 
 
Share repurchase
0 
0 
Advances from (to) affiliates
(323)
(443)
Issuance of shares for employee benefit plans
0 
0 
Issuance of debt
231 
0 
Repayment of debt
(239)
(7)
Cash dividends to shareholders
0 
0 
Purchase of shares from noncontrolling interests
0 
1 
Dividends paid to noncontrolling interests
(6)
(6)
CASH USED FOR FINANCING ACTIVITIES
(337)
(455)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
(42)
18 
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
0 
(106)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
0 
293 
CASH AND CASH EQUIVALENTS AT END OF PERIOD
0 
187 
Consolidating Adjustments [Member]
 
 
CASH FLOWS FROM OPERATING ACTIVITIES
 
 
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES
0 
0 
CASH FLOWS FROM INVESTING ACTIVITIES
 
 
Sales of long-term investments
0 
0 
Purchases of long-term investments
0 
0 
Net (purchases) sales of short-term investments - non-fiduciary
0 
0 
Acquisition of businesses, net of cash acquired
0 
0 
Proceeds from sale of businesses
0 
0 
Capital expenditures
0 
0 
CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES
0 
0 
CASH FLOWS FROM FINANCING ACTIVITIES
 
 
Share repurchase
0 
0 
Advances from (to) affiliates
(247)
0 
Issuance of shares for employee benefit plans
0 
0 
Issuance of debt
0 
0 
Repayment of debt
0 
0 
Cash dividends to shareholders
0 
0 
Purchase of shares from noncontrolling interests
0 
0 
Dividends paid to noncontrolling interests
0 
0 
CASH USED FOR FINANCING ACTIVITIES
(247)
0 
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
0 
0 
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
(247)
0 
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
(39)
0 
CASH AND CASH EQUIVALENTS AT END OF PERIOD
$ (286)
$ 0