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Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Equity earnings | $ | 4 | $ | 6 | $ | 10 | $ | 12 | |||||||
Gain on investments | 4 | 37 | 2 | 36 | |||||||||||
Foreign currency remeasurement gain (loss) | 7 | (4 | ) | 11 | 15 | ||||||||||
Derivative (loss) gain | (6 | ) | 1 | (19 | ) | (8 | ) | ||||||||
Gain on disposal of business | 25 | — | 25 | — | |||||||||||
Other | 1 | (1 | ) | 5 | (1 | ) | |||||||||
$ | 35 | $ | 39 | $ | 34 | $ | 54 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Balance at beginning of period | $ | 88 | $ | 114 | $ | 90 | $ | 118 | |||||||
Provision charged to operations | 1 | (5 | ) | 9 | 6 | ||||||||||
Accounts written off, net of recoveries | (14 | ) | (8 | ) | (23 | ) | (26 | ) | |||||||
Effect of exchange rate changes and other | 4 | (2 | ) | 3 | 1 | ||||||||||
Balance at end of period | $ | 79 | $ | 99 | $ | 79 | $ | 99 |
September 30, 2014 | December 31, 2013 | ||||||
Taxes receivable | 258 | 111 | |||||
Prepaid expenses | 238 | 229 | |||||
Deferred project costs | 102 | 98 | |||||
Deferred tax assets | 81 | 93 | |||||
Other | 32 | 32 | |||||
$ | 711 | $ | 563 |
September 30, 2014 | December 31, 2013 | ||||||
Prepaid pension (1) | $ | 750 | $ | 567 | |||
Deferred project costs | 256 | 273 | |||||
Deferred tax assets | 176 | 193 | |||||
Taxes receivable | 98 | 108 | |||||
Other | 251 | 282 | |||||
$ | 1,531 | $ | 1,423 |
(1) | Increase in prepaid pensions is primarily due to cash funding of the U.K. pension plans. |
September 30, 2014 | December 31, 2013 | ||||||
Deferred revenue | $ | 440 | $ | 475 | |||
Taxes payable | 96 | 136 | |||||
Deferred tax liabilities | 36 | 48 | |||||
Other | 281 | 247 | |||||
$ | 853 | $ | 906 |
September 30, 2014 | December 31, 2013 | ||||||
Deferred tax liabilities | $ | 535 | $ | 420 | |||
Taxes payable | 202 | 184 | |||||
Leases | 191 | 204 | |||||
Deferred revenue | 170 | 134 | |||||
Compensation and benefits | 56 | 105 | |||||
Other | 268 | 305 | |||||
$ | 1,422 | $ | 1,352 |
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Nine months ended September 30, | ||||||||
2014 | 2013 | |||||||
Consideration | $ | 446 | $ | 26 | ||||
Intangible assets: | ||||||||
Goodwill | $ | 261 | $ | 26 | ||||
Other intangible assets | 310 | 8 | ||||||
Total | $ | 571 | $ | 34 |
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Risk Solutions | HR Solutions | Total | |||||||||
Balance as of December 31, 2013 | $ | 6,020 | $ | 2,977 | $ | 8,997 | |||||
Goodwill related to current year acquisitions | 256 | 5 | 261 | ||||||||
Goodwill related to disposals | (14 | ) | — | (14 | ) | ||||||
Goodwill related to prior year acquisitions | (1 | ) | — | (1 | ) | ||||||
Transfer | (2 | ) | 2 | — | |||||||
Foreign currency translation | (202 | ) | (15 | ) | (217 | ) | |||||
Balance as of September 30, 2014 | $ | 6,057 | $ | 2,969 | $ | 9,026 |
September 30, 2014 | December 31, 2013 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||
Intangible assets with indefinite lives: | |||||||||||||||||||||||
Tradenames | $ | 1,019 | $ | — | $ | 1,019 | $ | 1,019 | $ | — | $ | 1,019 | |||||||||||
Intangible assets with finite lives: | |||||||||||||||||||||||
Customer related and contract based | 2,972 | 1,520 | 1,452 | 2,720 | 1,310 | 1,410 | |||||||||||||||||
Marketing, technology and other | 588 | 447 | 141 | 584 | 435 | 149 | |||||||||||||||||
$ | 4,579 | $ | 1,967 | $ | 2,612 | $ | 4,323 | $ | 1,745 | $ | 2,578 |
Risk Solutions | HR Solutions | Total | |||||||||
Remainder of 2014 | $ | 29 | $ | 60 | $ | 89 | |||||
2015 | 109 | 211 | 320 | ||||||||
2016 | 100 | 176 | 276 | ||||||||
2017 | 91 | 140 | 231 | ||||||||
2018 | 79 | 93 | 172 | ||||||||
Thereafter | 253 | 252 | 505 | ||||||||
$ | 661 | $ | 932 | $ | 1,593 |
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September 30, 2014 | December 31, 2013 | ||||||
Cash and cash equivalents | $ | 382 | $ | 477 | |||
Short-term investments | 217 | 523 | |||||
Fiduciary assets (1) | 3,877 | 3,778 | |||||
Investments | 143 | 132 | |||||
$ | 4,619 | $ | 4,910 |
(1) | Fiduciary assets include funds held on behalf of clients but does not include fiduciary receivables. |
September 30, 2014 | December 31, 2013 | ||||||
Equity method investments | $ | 122 | $ | 113 | |||
Other investments | 13 | 10 | |||||
Fixed-maturity securities | 8 | 9 | |||||
$ | 143 | $ | 132 |
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Three months ended September 30, | |||||||||||||||||||||||
U.K. | U.S. | Other | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Service cost | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 5 | |||||||||||
Interest cost | 58 | 52 | 32 | 28 | 12 | 11 | |||||||||||||||||
Expected return on plan assets | (82 | ) | (74 | ) | (39 | ) | (34 | ) | (15 | ) | (15 | ) | |||||||||||
Amortization of net actuarial loss | 13 | 12 | 11 | 13 | 2 | 6 | |||||||||||||||||
Total net periodic (benefit) cost | $ | (11 | ) | $ | (10 | ) | $ | 4 | $ | 7 | $ | (1 | ) | $ | 7 |
Nine months ended September 30, | |||||||||||||||||||||||
U.K. | U.S. | Other | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Service cost | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 14 | |||||||||||
Interest cost | 174 | 156 | 96 | 84 | 36 | 33 | |||||||||||||||||
Expected return on plan assets | (247 | ) | (223 | ) | (117 | ) | (103 | ) | (45 | ) | (44 | ) | |||||||||||
Amortization of net actuarial loss | 40 | 36 | 32 | 39 | 6 | 19 | |||||||||||||||||
Net periodic (benefit) cost | (33 | ) | (31 | ) | 11 | 20 | (3 | ) | 22 | ||||||||||||||
Curtailment loss (gain) and other | — | — | 1 | — | (3 | ) | — | ||||||||||||||||
Total net periodic (benefit) cost | $ | (33 | ) | $ | (31 | ) | $ | 12 | $ | 20 | $ | (6 | ) | $ | 22 |
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Notional Amount | Derivative Assets (1) | Derivative Liabilities (2) | |||||||||||||||||||||
September 30, 2014 | December 31, 2013 | September 30, 2014 | December 31, 2013 | September 30, 2014 | December 31, 2013 | ||||||||||||||||||
Derivatives accounted for as hedges: | |||||||||||||||||||||||
Interest rate contracts | $ | — | $ | 171 | $ | — | $ | 9 | $ | — | $ | — | |||||||||||
Foreign exchange contracts | 1,106 | 1,191 | 55 | 71 | 65 | 93 | |||||||||||||||||
Total | 1,106 | 1,362 | 55 | 80 | 65 | 93 | |||||||||||||||||
Derivatives not accounted for as hedges: | |||||||||||||||||||||||
Foreign exchange contracts | 184 | 215 | — | — | — | — | |||||||||||||||||
Total | $ | 1,290 | $ | 1,577 | $ | 55 | $ | 80 | $ | 65 | $ | 93 |
(1) | Included within Other current assets ($25 million and $46 million at September 30, 2014 and December 31, 2013, respectively) or Other non-current assets ($30 million and $34 million at September 30, 2014 and December 31, 2013, respectively). |
(2) | Included within Other current liabilities ($17 million and $51 million at September 30, 2014 and December 31, 2013, respectively) or Other non-current liabilities ($48 million and $42 million at September 30, 2014 and December 31, 2013, respectively). |
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) | |||||||||||||||||||||
September 30, 2014 | December 31, 2013 | September 30, 2014 | December 31, 2013 | September 30, 2014 | December 31, 2013 | ||||||||||||||||||
Derivatives accounted for as hedges: | |||||||||||||||||||||||
Interest rate contracts | $ | — | $ | 9 | $ | — | $ | — | $ | — | $ | 9 | |||||||||||
Foreign exchange contracts | 55 | 71 | (15 | ) | (30 | ) | 40 | 41 | |||||||||||||||
Total | 55 | 80 | (15 | ) | (30 | ) | 40 | 50 | |||||||||||||||
Derivatives not accounted for as hedges: | |||||||||||||||||||||||
Foreign exchange contracts | — | — | — | — | — | — | |||||||||||||||||
Total | $ | 55 | $ | 80 | $ | (15 | ) | $ | (30 | ) | $ | 40 | $ | 50 |
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 (1) | |||||||||||||||||||||
September 30, 2014 | December 31, 2013 | September 30, 2014 | December 31, 2013 | September 30, 2014 | December 31, 2013 | ||||||||||||||||||
Derivatives accounted for as hedges: | |||||||||||||||||||||||
Interest rate contracts | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Foreign exchange contracts | 65 | 93 | (15 | ) | (30 | ) | 50 | 63 | |||||||||||||||
Total | 65 | 93 | (15 | ) | (30 | ) | 50 | 63 | |||||||||||||||
Derivatives not accounted for as hedges: | |||||||||||||||||||||||
Foreign exchange contracts | — | — | — | — | — | — | |||||||||||||||||
Total | $ | 65 | $ | 93 | $ | (15 | ) | $ | (30 | ) | $ | 50 | $ | 63 |
Gain (Loss) recognized in Accumulated Other Comprehensive Loss: | Three months ended September 30, | Nine months ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Cash flow hedges: | |||||||||||||||
Interest rate contracts (1) | $ | — | $ | — | $ | — | $ | — | |||||||
Foreign exchange contracts (2) | (3 | ) | — | 4 | (28 | ) | |||||||||
Total | $ | (3 | ) | $ | — | $ | 4 | $ | (28 | ) |
Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion): | Three months ended September 30, | Nine months ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Cash flow hedges: | |||||||||||||||
Interest rate contracts (1) | $ | — | $ | — | $ | (1 | ) | $ | (1 | ) | |||||
Foreign exchange contracts (2) | 4 | (10 | ) | (15 | ) | (7 | ) | ||||||||
Total | 4 | (10 | ) | (16 | ) | (8 | ) |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||||
Amount of Gain (Loss) Recognized in Income on Derivative (1) | Amount of Gain (Loss) Recognized in Income on Related Hedged Item | Amount of Gain (Loss) Recognized in Income on Derivative (1) (2) | Amount of Gain (Loss) Recognized in Income on Related Hedge Item (1) (2) | ||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||
Fair value hedges: | |||||||||||||||||||||||||||||||
Foreign exchange contracts (2) | $ | (9 | ) | $ | (7 | ) | $ | 9 | $ | 7 | $ | (9 | ) | $ | (8 | ) | $ | 9 | $ | 8 |
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• | 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. |
Fair Value Measurements Using | |||||||||||||||
Balance at September 30, 2014 | 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) | $ | 1,649 | $ | 1,647 | $ | 2 | $ | — | |||||||
Other investments: | |||||||||||||||
Fixed maturity securities: | |||||||||||||||
Corporate bonds | 1 | — | — | 1 | |||||||||||
Government bonds | 7 | — | 7 | — | |||||||||||
Equity securities | 11 | 6 | 5 | — | |||||||||||
Derivatives: | |||||||||||||||
Interest rate contracts | — | — | — | — | |||||||||||
Foreign exchange contracts | 55 | — | 55 | — | |||||||||||
Liabilities: | |||||||||||||||
Derivatives: | |||||||||||||||
Foreign exchange contracts | 65 | — | 65 | — |
Fair Value Measurements Using | |||||||||||||||
Balance at December 31, 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) | $ | 2,079 | $ | 2,054 | $ | 25 | $ | — | |||||||
Other investments: | |||||||||||||||
Fixed maturity securities: | |||||||||||||||
Corporate bonds | 2 | — | — | 2 | |||||||||||
Government bonds | 7 | — | 7 | — | |||||||||||
Equity securities | 13 | 6 | 7 | — | |||||||||||
Derivatives: | |||||||||||||||
Interest rate contracts | 9 | — | 9 | — | |||||||||||
Foreign exchange contracts | 71 | — | 71 | — | |||||||||||
Liabilities: | |||||||||||||||
Derivatives: | |||||||||||||||
Foreign exchange contracts | 93 | — | 93 | — |
September 30, 2014 | December 31, 2013 | ||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||
Long-term debt | $ | 4,840 | $ | 5,190 | $ | 3,686 | $ | 3,894 |
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Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Risk Solutions | $ | 1,836 | $ | 1,821 | $ | 5,778 | $ | 5,736 | |||||||
HR Solutions | 1,057 | 981 | 3,004 | 2,891 | |||||||||||
Intersegment eliminations | (13 | ) | (8 | ) | (36 | ) | (21 | ) | |||||||
Total revenue | $ | 2,880 | $ | 2,794 | $ | 8,746 | $ | 8,606 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Retail brokerage | $ | 1,458 | $ | 1,424 | $ | 4,619 | $ | 4,548 | |||||||
Reinsurance brokerage | 371 | 389 | 1,140 | 1,167 | |||||||||||
Total Risk Solutions Segment | 1,829 | 1,813 | 5,759 | 5,715 | |||||||||||
Consulting services | 466 | 406 | 1,245 | 1,176 | |||||||||||
Outsourcing | 604 | 587 | 1,788 | 1,746 | |||||||||||
Intrasegment | (13 | ) | (12 | ) | (29 | ) | (31 | ) | |||||||
Total HR Solutions Segment | 1,057 | 981 | 3,004 | 2,891 | |||||||||||
Intersegment | (13 | ) | (8 | ) | (36 | ) | (21 | ) | |||||||
Total commissions, fees and other revenue | $ | 2,873 | $ | 2,786 | $ | 8,727 | $ | 8,585 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Risk Solutions | $ | 7 | $ | 8 | $ | 19 | $ | 21 | |||||||
HR Solutions | — | — | — | — | |||||||||||
Total fiduciary investment income | $ | 7 | $ | 8 | $ | 19 | $ | 21 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Risk Solutions | $ | 343 | $ | 333 | $ | 1,205 | $ | 1,127 | |||||||
HR Solutions | 113 | 75 | 249 | 162 | |||||||||||
Segment income before income taxes | 456 | 408 | 1,454 | 1,289 | |||||||||||
Unallocated expenses | (39 | ) | (44 | ) | (123 | ) | (133 | ) | |||||||
Interest income | 3 | 3 | 7 | 6 | |||||||||||
Interest expense | (65 | ) | (53 | ) | (188 | ) | (153 | ) | |||||||
Other income | 35 | 39 | 34 | 54 | |||||||||||
Income before income taxes | $ | 390 | $ | 353 | $ | 1,184 | $ | 1,063 |
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Three months ended September 30, 2014 | ||||||||||||||||||||
Other | ||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | |||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | |||||||||||||||
Revenue | ||||||||||||||||||||
Commissions, fees and other | $ | — | $ | — | $ | 2,873 | $ | — | $ | 2,873 | ||||||||||
Fiduciary investment income | — | — | 7 | — | 7 | |||||||||||||||
Total revenue | — | — | 2,880 | — | 2,880 | |||||||||||||||
Expenses | ||||||||||||||||||||
Compensation and benefits | 4 | 5 | 1,698 | — | 1,707 | |||||||||||||||
Other general expenses | 6 | 14 | 736 | — | 756 | |||||||||||||||
Total operating expenses | 10 | 19 | 2,434 | — | 2,463 | |||||||||||||||
Operating (loss) income | (10 | ) | (19 | ) | 446 | — | 417 | |||||||||||||
Interest income | (2 | ) | 1 | 4 | — | 3 | ||||||||||||||
Interest expense | (25 | ) | (42 | ) | 2 | — | (65 | ) | ||||||||||||
Intercompany interest income (expense) | 113 | (73 | ) | (40 | ) | — | — | |||||||||||||
Other income | 2 | 2 | 31 | — | 35 | |||||||||||||||
Income (loss) before taxes | 78 | (131 | ) | 443 | — | 390 | ||||||||||||||
Income tax expense (benefit) | 16 | (52 | ) | 111 | — | 75 | ||||||||||||||
Income (loss) before equity in earnings of subsidiaries | 62 | (79 | ) | 332 | — | 315 | ||||||||||||||
Equity in earnings of subsidiaries, net of tax | 247 | 202 | — | (449 | ) | — | ||||||||||||||
Net income | 309 | 123 | 332 | (449 | ) | 315 | ||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 6 | — | 6 | |||||||||||||||
Net income attributable to Aon shareholders | $ | 309 | $ | 123 | $ | 326 | $ | (449 | ) | $ | 309 |
Three months ended September 30, 2013 | ||||||||||||||||||||
Other | ||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | |||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | |||||||||||||||
Revenue | ||||||||||||||||||||
Commissions, fees and other | $ | 1 | $ | — | $ | 2,785 | $ | — | $ | 2,786 | ||||||||||
Fiduciary investment income | — | — | 8 | — | 8 | |||||||||||||||
Total revenue | 1 | — | 2,793 | — | 2,794 | |||||||||||||||
Expenses | ||||||||||||||||||||
Compensation and benefits | 11 | 14 | 1,641 | — | 1,666 | |||||||||||||||
Other general expenses | — | 5 | 759 | — | 764 | |||||||||||||||
Total operating expenses | 11 | 19 | 2,400 | — | 2,430 | |||||||||||||||
Operating (loss) income | (10 | ) | (19 | ) | 393 | — | 364 | |||||||||||||
Interest income | — | 1 | 2 | — | 3 | |||||||||||||||
Interest expense | (6 | ) | (39 | ) | (8 | ) | — | (53 | ) | |||||||||||
Intercompany interest income (expense) | 25 | 11 | (36 | ) | — | — | ||||||||||||||
Other income | — | 13 | 26 | — | 39 | |||||||||||||||
Income (loss) before taxes | 9 | (33 | ) | 377 | — | 353 | ||||||||||||||
Income tax (benefit) expense | (2 | ) | (14 | ) | 105 | — | 89 | |||||||||||||
Income (loss) before equity in earnings of subsidiaries | 11 | (19 | ) | 272 | — | 264 | ||||||||||||||
Equity in earnings of subsidiaries, net of tax | 245 | 127 | — | (372 | ) | — | ||||||||||||||
Net income | 256 | 108 | 272 | (372 | ) | 264 | ||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 8 | — | 8 | |||||||||||||||
Net income attributable to Aon shareholders | $ | 256 | $ | 108 | $ | 264 | $ | (372 | ) | $ | 256 |
Nine months ended September 30, 2014 | ||||||||||||||||||||
Other | ||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | |||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | |||||||||||||||
Revenue | ||||||||||||||||||||
Commissions, fees and other | $ | — | $ | — | $ | 8,727 | $ | — | $ | 8,727 | ||||||||||
Fiduciary investment income | — | — | 19 | — | 19 | |||||||||||||||
Total revenue | — | — | 8,746 | — | 8,746 | |||||||||||||||
Expenses | ||||||||||||||||||||
Compensation and benefits | 29 | 19 | 5,118 | — | 5,166 | |||||||||||||||
Other general expenses | 18 | 37 | 2,194 | — | 2,249 | |||||||||||||||
Total operating expenses | 47 | 56 | 7,312 | — | 7,415 | |||||||||||||||
Operating (loss) income | (47 | ) | (56 | ) | 1,434 | — | 1,331 | |||||||||||||
Interest income | (6 | ) | 1 | 12 | — | 7 | ||||||||||||||
Interest expense | (49 | ) | (105 | ) | (34 | ) | — | (188 | ) | |||||||||||
Intercompany interest income (expense) | 335 | (220 | ) | (115 | ) | — | — | |||||||||||||
Other income | 1 | 10 | 23 | — | 34 | |||||||||||||||
Income (loss) before taxes | 234 | (370 | ) | 1,320 | — | 1,184 | ||||||||||||||
Income tax expense (benefit) | 49 | (144 | ) | 315 | — | 220 | ||||||||||||||
Income (loss) before equity in earnings of subsidiaries | 185 | (226 | ) | 1,005 | — | 964 | ||||||||||||||
Equity in earnings of subsidiaries, net of tax | 753 | 734 | — | (1,487 | ) | — | ||||||||||||||
Net income | 938 | 508 | 1,005 | (1,487 | ) | 964 | ||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 26 | — | 26 | |||||||||||||||
Net income attributable to Aon shareholders | $ | 938 | $ | 508 | $ | 979 | $ | (1,487 | ) | $ | 938 |
Nine months ended September 30, 2013 | ||||||||||||||||||||
Other | ||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | |||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | |||||||||||||||
Revenue | ||||||||||||||||||||
Commissions, fees and other | $ | 2 | $ | — | $ | 8,583 | $ | — | $ | 8,585 | ||||||||||
Fiduciary investment income | — | — | 21 | — | 21 | |||||||||||||||
Total revenue | 2 | — | 8,604 | — | 8,606 | |||||||||||||||
Expenses | ||||||||||||||||||||
Compensation and benefits | 27 | 34 | 5,042 | — | 5,103 | |||||||||||||||
Other general expenses | 14 | 29 | 2,304 | — | 2,347 | |||||||||||||||
Total operating expenses | 41 | 63 | 7,346 | — | 7,450 | |||||||||||||||
Operating (loss) income | (39 | ) | (63 | ) | 1,258 | — | 1,156 | |||||||||||||
Interest income | 1 | 2 | 3 | — | 6 | |||||||||||||||
Interest expense | (12 | ) | (106 | ) | (35 | ) | — | (153 | ) | |||||||||||
Intercompany interest (expense) income | 11 | 96 | (107 | ) | — | — | ||||||||||||||
Other income | — | 10 | 44 | — | 54 | |||||||||||||||
(Loss) income before taxes | (39 | ) | (61 | ) | 1,163 | — | 1,063 | |||||||||||||
Income tax (benefit) expense | (11 | ) | (24 | ) | 310 | — | 275 | |||||||||||||
(Loss) income before equity in earnings of subsidiaries | (28 | ) | (37 | ) | 853 | — | 788 | |||||||||||||
Equity in earnings of subsidiaries, net of tax | 786 | 617 | — | (1,403 | ) | — | ||||||||||||||
Net income | 758 | 580 | 853 | (1,403 | ) | 788 | ||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 30 | — | 30 | |||||||||||||||
Net income attributable to Aon shareholders | $ | 758 | $ | 580 | $ | 823 | $ | (1,403 | ) | $ | 758 |
Three months ended September 30, 2014 | ||||||||||||||||||||
Other | ||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | |||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | |||||||||||||||
Net income | $ | 309 | $ | 123 | $ | 332 | $ | (449 | ) | $ | 315 | |||||||||
Less: Net income attributable to noncontrolling interests | — | — | 6 | — | 6 | |||||||||||||||
Net income attributable to Aon shareholders | $ | 309 | $ | 123 | $ | 326 | $ | (449 | ) | $ | 309 | |||||||||
Other comprehensive (loss) income, net of tax: | ||||||||||||||||||||
Change in fair value of investments | — | — | — | — | — | |||||||||||||||
Change in fair value of derivatives | — | (1 | ) | (7 | ) | — | (8 | ) | ||||||||||||
Foreign currency translation adjustments | — | (17 | ) | (301 | ) | — | (318 | ) | ||||||||||||
Post-retirement benefit obligation | — | 6 | 20 | — | 26 | |||||||||||||||
Total other comprehensive income | — | (12 | ) | (288 | ) | — | (300 | ) | ||||||||||||
Equity in other comprehensive loss of subsidiaries, net of tax | (300 | ) | (285 | ) | — | 585 | — | |||||||||||||
Less: Other comprehensive income attributable to noncontrolling interests | — | — | — | — | — | |||||||||||||||
Total other comprehensive income attributable to Aon shareholders | (300 | ) | (297 | ) | (288 | ) | 585 | (300 | ) | |||||||||||
Comprehensive income attributable to Aon shareholders | $ | 9 | $ | (174 | ) | $ | 38 | $ | 136 | $ | 9 |
Three months ended September 30, 2013 | ||||||||||||||||||||
Other | ||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | |||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | |||||||||||||||
Net income | $ | 256 | $ | 108 | $ | 272 | $ | (372 | ) | $ | 264 | |||||||||
Less: Net income attributable to noncontrolling interests | — | — | 8 | — | 8 | |||||||||||||||
Net income attributable to Aon shareholders | $ | 256 | $ | 108 | $ | 264 | $ | (372 | ) | $ | 256 | |||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||
Change in fair value of investments | — | (4 | ) | (10 | ) | — | (14 | ) | ||||||||||||
Change in fair value of derivatives | — | 2 | 7 | — | 9 | |||||||||||||||
Foreign currency translation adjustments | — | 6 | 149 | — | 155 | |||||||||||||||
Post-retirement benefit obligation | — | 7 | 17 | — | 24 | |||||||||||||||
Total other comprehensive income | — | 11 | 163 | — | 174 | |||||||||||||||
Equity in other comprehensive income of subsidiaries, net of tax | 170 | 157 | — | (327 | ) | — | ||||||||||||||
Less: Other comprehensive income attributable to noncontrolling interests | — | — | 3 | — | 3 | |||||||||||||||
Total other comprehensive income attributable to Aon shareholders | 170 | 168 | 160 | (327 | ) | 171 | ||||||||||||||
Comprehensive income attributable to Aon Shareholders | $ | 426 | $ | 276 | $ | 424 | $ | (699 | ) | $ | 427 |
Nine months ended September 30, 2014 | ||||||||||||||||||||
Other | ||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | |||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | |||||||||||||||
Net income | $ | 938 | $ | 508 | $ | 1,005 | $ | (1,487 | ) | $ | 964 | |||||||||
Less: Net income attributable to noncontrolling interests | — | — | 26 | — | 26 | |||||||||||||||
Net income attributable to Aon shareholders | $ | 938 | $ | 508 | $ | 979 | $ | (1,487 | ) | $ | 938 | |||||||||
Other comprehensive (loss) income, net of tax: | ||||||||||||||||||||
Change in fair value of investments | — | — | (1 | ) | — | (1 | ) | |||||||||||||
Change in fair value of derivatives | — | (1 | ) | 14 | — | 13 | ||||||||||||||
Foreign currency translation adjustments | — | (19 | ) | (209 | ) | — | (228 | ) | ||||||||||||
Post-retirement benefit obligation | — | 17 | 53 | — | 70 | |||||||||||||||
Total other comprehensive income | — | (3 | ) | (143 | ) | — | (146 | ) | ||||||||||||
Equity in other comprehensive loss of subsidiaries, net of tax | (144 | ) | (142 | ) | — | 286 | — | |||||||||||||
Less: Other comprehensive income attributable to noncontrolling interests | — | — | (2 | ) | — | (2 | ) | |||||||||||||
Total other comprehensive income attributable to Aon shareholders | (144 | ) | (145 | ) | (141 | ) | 286 | (144 | ) | |||||||||||
Comprehensive income attributable to Aon shareholders | $ | 794 | $ | 363 | $ | 838 | $ | (1,201 | ) | $ | 794 |
Nine months ended September 30, 2013 | ||||||||||||||||||||
Other | ||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | |||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | |||||||||||||||
Net income | $ | 758 | $ | 580 | $ | 853 | $ | (1,403 | ) | $ | 788 | |||||||||
Less: Net income attributable to noncontrolling interests | — | — | 30 | — | 30 | |||||||||||||||
Net income attributable to Aon shareholders | $ | 758 | $ | 580 | $ | 823 | $ | (1,403 | ) | $ | 758 | |||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||
Change in fair value of investments | — | — | (1 | ) | — | (1 | ) | |||||||||||||
Change in fair value of derivatives | — | 5 | (17 | ) | — | (12 | ) | |||||||||||||
Foreign currency translation adjustments | — | (14 | ) | (63 | ) | — | (77 | ) | ||||||||||||
Post-retirement benefit obligation | — | 22 | 43 | — | 65 | |||||||||||||||
Total other comprehensive income | — | 13 | (38 | ) | — | (25 | ) | |||||||||||||
Equity in other comprehensive income of subsidiaries, net of tax | (27 | ) | (38 | ) | — | 65 | — | |||||||||||||
Less: Other comprehensive income attributable to noncontrolling interests | — | — | 1 | — | 1 | |||||||||||||||
Total other comprehensive income attributable to Aon shareholders | (27 | ) | (25 | ) | (39 | ) | 65 | (26 | ) | |||||||||||
Comprehensive income attributable to Aon Shareholders | $ | 731 | $ | 555 | $ | 784 | $ | (1,338 | ) | $ | 732 |
As of September 30, 2014 | ||||||||||||||||||||
Other | ||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | |||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | |||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 568 | $ | 1,444 | $ | (1,630 | ) | $ | 382 | |||||||||
Short-term investments | — | 59 | 158 | — | 217 | |||||||||||||||
Receivables, net | — | — | 2,633 | (3 | ) | 2,630 | ||||||||||||||
Fiduciary assets | — | — | 10,815 | — | 10,815 | |||||||||||||||
Intercompany receivables | 321 | 2,696 | 9,419 | (12,436 | ) | — | ||||||||||||||
Other current assets | 1 | 205 | 669 | (164 | ) | 711 | ||||||||||||||
Total Current Assets | 322 | 3,528 | 25,138 | (14,233 | ) | 14,755 | ||||||||||||||
Goodwill | — | — | 9,026 | — | 9,026 | |||||||||||||||
Intangible assets, net | — | — | 2,612 | — | 2,612 | |||||||||||||||
Fixed assets, net | — | — | 760 | — | 760 | |||||||||||||||
Investments | — | 79 | 64 | — | 143 | |||||||||||||||
Intercompany receivables | 7,408 | 2,162 | 2,211 | (11,781 | ) | — | ||||||||||||||
Other non-current assets | 169 | 498 | 1,550 | (686 | ) | 1,531 | ||||||||||||||
Investment in subsidiary | 5,752 | 16,469 | — | (22,221 | ) | — | ||||||||||||||
TOTAL ASSETS | $ | 13,651 | $ | 22,736 | $ | 41,361 | $ | (48,921 | ) | $ | 28,827 | |||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||
Fiduciary liabilities | $ | — | $ | — | $ | 10,815 | $ | — | $ | 10,815 | ||||||||||
Short-term debt and current portion of long-term debt | — | 649 | 11 | — | 660 | |||||||||||||||
Accounts payable and accrued liabilities | 1,683 | 34 | 1,444 | (1,633 | ) | 1,528 | ||||||||||||||
Intercompany payables | 8 | 9,258 | 3,170 | (12,436 | ) | — | ||||||||||||||
Other current liabilities | 72 | 47 | 898 | (164 | ) | 853 | ||||||||||||||
Total Current Liabilities | 1,763 | 9,988 | 16,338 | (14,233 | ) | 13,856 | ||||||||||||||
Long-term debt | 2,568 | 1,917 | 355 | — | 4,840 | |||||||||||||||
Pension, other post-retirement and other post-employment liabilities | — | 854 | 583 | — | 1,437 | |||||||||||||||
Intercompany payables | 2,100 | 7,277 | 2,404 | (11,781 | ) | — | ||||||||||||||
Other non-current liabilities | 5 | 108 | 1,995 | (686 | ) | 1,422 | ||||||||||||||
TOTAL LIABILITIES | 6,436 | 20,144 | 21,675 | (26,700 | ) | 21,555 | ||||||||||||||
TOTAL AON SHAREHOLDERS' EQUITY | 7,215 | 2,592 | 19,629 | (22,221 | ) | 7,215 | ||||||||||||||
Noncontrolling interests | — | — | 57 | — | 57 | |||||||||||||||
TOTAL EQUITY | 7,215 | 2,592 | 19,686 | (22,221 | ) | 7,272 | ||||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 13,651 | $ | 22,736 | $ | 41,361 | $ | (48,921 | ) | $ | 28,827 |
As of December 31, 2013 | ||||||||||||||||||||
Other | ||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | |||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | |||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 247 | $ | 1,246 | $ | (1,016 | ) | $ | 477 | |||||||||
Short-term investments | — | 163 | 360 | — | 523 | |||||||||||||||
Receivables, net | — | 4 | 2,892 | — | 2,896 | |||||||||||||||
Fiduciary assets | — | — | 11,871 | — | 11,871 | |||||||||||||||
Intercompany receivables | 186 | 3,503 | 5,452 | (9,141 | ) | — | ||||||||||||||
Other current assets | — | 69 | 513 | (19 | ) | 563 | ||||||||||||||
Total Current Assets | 186 | 3,986 | 22,334 | (10,176 | ) | 16,330 | ||||||||||||||
Goodwill | — | — | 8,997 | — | 8,997 | |||||||||||||||
Intangible assets, net | — | — | 2,578 | — | 2,578 | |||||||||||||||
Fixed assets, net | — | — | 791 | — | 791 | |||||||||||||||
Investments | — | 57 | 75 | — | 132 | |||||||||||||||
Intercompany receivables | 7,166 | 2,178 | 2,201 | (11,545 | ) | — | ||||||||||||||
Other non-current assets | 146 | 560 | 1,421 | (704 | ) | 1,423 | ||||||||||||||
Investment in subsidiary | 4,607 | 11,694 | — | (16,301 | ) | — | ||||||||||||||
TOTAL ASSETS | $ | 12,105 | $ | 18,475 | $ | 38,397 | $ | (38,726 | ) | $ | 30,251 | |||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||
Fiduciary liabilities | $ | — | $ | — | $ | 11,871 | $ | — | $ | 11,871 | ||||||||||
Short-term debt and current portion of long-term debt | — | — | 707 | (4 | ) | 703 | ||||||||||||||
Accounts payable and accrued liabilities | 1,036 | 62 | 1,849 | (1,016 | ) | 1,931 | ||||||||||||||
Intercompany payables | 15 | 5,449 | 3,677 | (9,141 | ) | — | ||||||||||||||
Other current liabilities | 12 | 47 | 866 | (19 | ) | 906 | ||||||||||||||
Total Current Liabilities | 1,063 | 5,558 | 18,970 | (10,180 | ) | 15,411 | ||||||||||||||
Long-term debt | 792 | 2,512 | 378 | 4 | 3,686 | |||||||||||||||
Pension, other post-retirement and other post-employment liabilities | — | 925 | 682 | — | 1,607 | |||||||||||||||
Intercompany payables | 2,100 | 7,267 | 2,178 | (11,545 | ) | — | ||||||||||||||
Other non-current liabilities | 5 | 159 | 1,892 | (704 | ) | 1,352 | ||||||||||||||
TOTAL LIABILITIES | 3,960 | 16,421 | 24,100 | (22,425 | ) | 22,056 | ||||||||||||||
TOTAL AON SHAREHOLDERS' EQUITY | 8,145 | 2,054 | 14,247 | (16,301 | ) | 8,145 | ||||||||||||||
Noncontrolling interests | — | — | 50 | — | 50 | |||||||||||||||
TOTAL EQUITY | 8,145 | 2,054 | 14,297 | (16,301 | ) | 8,195 | ||||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 12,105 | $ | 18,475 | $ | 38,397 | $ | (38,726 | ) | $ | 30,251 |
Nine months ended September 30, 2014 | ||||||||||||||||||||
Aon | Aon | Other Non-Guarantor | Consolidating | |||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | |||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||||||||||
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES | $ | 309 | $ | (348 | ) | $ | 922 | $ | — | $ | 883 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||||||||||
Sales of long-term investments | — | 39 | 12 | — | 51 | |||||||||||||||
Purchase of long-term investments | — | (19 | ) | — | — | (19 | ) | |||||||||||||
Net sales of short-term investments - non-fiduciary | — | 103 | 198 | — | 301 | |||||||||||||||
Acquisition of businesses, net of cash acquired | — | — | (464 | ) | — | (464 | ) | |||||||||||||
Proceeds from sale of businesses | — | — | 48 | — | 48 | |||||||||||||||
Capital expenditures | — | — | (179 | ) | — | (179 | ) | |||||||||||||
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES | — | 123 | (385 | ) | — | (262 | ) | |||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||||||||||
Share repurchase | (1,750 | ) | — | — | — | (1,750 | ) | |||||||||||||
Advances (to) from affiliates | (253 | ) | 496 | 371 | (614 | ) | — | |||||||||||||
Issuance of shares for employee benefit plans | 58 | — | — | — | 58 | |||||||||||||||
Issuance of debt | 2,714 | 1,541 | — | — | 4,255 | |||||||||||||||
Repayment of debt | (877 | ) | (1,491 | ) | (705 | ) | — | (3,073 | ) | |||||||||||
Cash dividends to shareholders | (201 | ) | — | — | — | (201 | ) | |||||||||||||
Purchase of shares from noncontrolling interests | — | — | 1 | — | 1 | |||||||||||||||
Dividends paid to noncontrolling interests | — | — | (18 | ) | — | (18 | ) | |||||||||||||
Proceeds from sale-leaseback | — | — | 25 | — | 25 | |||||||||||||||
CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES | (309 | ) | 546 | (326 | ) | (614 | ) | (703 | ) | |||||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | — | — | (13 | ) | — | (13 | ) | |||||||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | — | 321 | 198 | (614 | ) | (95 | ) | |||||||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | — | 247 | 1,246 | (1,016 | ) | 477 | ||||||||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | — | $ | 568 | $ | 1,444 | $ | (1,630 | ) | $ | 382 |
Nine months ended September 30, 2013 | ||||||||||||||||||||
Other | ||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | |||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | |||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||||||||||
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES | $ | (14 | ) | $ | (195 | ) | $ | 1,193 | $ | — | $ | 984 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||||||||||
Sales of long-term investments | — | 8 | 73 | — | 81 | |||||||||||||||
Purchase of long-term investments | — | (13 | ) | — | — | (13 | ) | |||||||||||||
Net sales of short-term investments - non-fiduciary | — | (35 | ) | 22 | — | (13 | ) | |||||||||||||
Acquisition of businesses, net of cash acquired | — | — | (26 | ) | — | (26 | ) | |||||||||||||
Proceeds from sale of businesses | — | — | 6 | — | 6 | |||||||||||||||
Capital expenditures | — | — | (174 | ) | — | (174 | ) | |||||||||||||
CASH USED FOR INVESTING ACTIVITIES | — | (40 | ) | (99 | ) | — | (139 | ) | ||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||||||||||
Share repurchase | (1,025 | ) | — | — | — | (1,025 | ) | |||||||||||||
Advances from (to) affiliates | 405 | 610 | (1,014 | ) | (1 | ) | — | |||||||||||||
Issuance of shares for employee benefit plans | 84 | — | — | — | 84 | |||||||||||||||
Issuance of debt | 1,145 | 2,894 | 231 | — | 4,270 | |||||||||||||||
Repayment of debt | (449 | ) | (3,177 | ) | (244 | ) | — | (3,870 | ) | |||||||||||
Cash dividends to shareholders | (159 | ) | — | — | — | (159 | ) | |||||||||||||
Purchase of shares from noncontrolling interests | — | — | (6 | ) | — | (6 | ) | |||||||||||||
Dividends paid to noncontrolling interests | — | — | (13 | ) | — | (13 | ) | |||||||||||||
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES | 1 | 327 | (1,046 | ) | (1 | ) | (719 | ) | ||||||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | — | — | (48 | ) | — | (48 | ) | |||||||||||||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (13 | ) | 92 | — | (1 | ) | 78 | |||||||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 131 | 199 | — | (39 | ) | 291 | ||||||||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 118 | $ | 291 | $ | — | $ | (40 | ) | $ | 369 |
|
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Equity earnings | $ | 4 | $ | 6 | $ | 10 | $ | 12 | |||||||
Gain on investments | 4 | 37 | 2 | 36 | |||||||||||
Foreign currency remeasurement gain (loss) | 7 | (4 | ) | 11 | 15 | ||||||||||
Derivative (loss) gain | (6 | ) | 1 | (19 | ) | (8 | ) | ||||||||
Gain on disposal of business | 25 | — | 25 | — | |||||||||||
Other | 1 | (1 | ) | 5 | (1 | ) | |||||||||
$ | 35 | $ | 39 | $ | 34 | $ | 54 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Balance at beginning of period | $ | 88 | $ | 114 | $ | 90 | $ | 118 | |||||||
Provision charged to operations | 1 | (5 | ) | 9 | 6 | ||||||||||
Accounts written off, net of recoveries | (14 | ) | (8 | ) | (23 | ) | (26 | ) | |||||||
Effect of exchange rate changes and other | 4 | (2 | ) | 3 | 1 | ||||||||||
Balance at end of period | $ | 79 | $ | 99 | $ | 79 | $ | 99 |
September 30, 2014 | December 31, 2013 | ||||||
Taxes receivable | 258 | 111 | |||||
Prepaid expenses | 238 | 229 | |||||
Deferred project costs | 102 | 98 | |||||
Deferred tax assets | 81 | 93 | |||||
Other | 32 | 32 | |||||
$ | 711 | $ | 563 |
September 30, 2014 | December 31, 2013 | ||||||
Prepaid pension (1) | $ | 750 | $ | 567 | |||
Deferred project costs | 256 | 273 | |||||
Deferred tax assets | 176 | 193 | |||||
Taxes receivable | 98 | 108 | |||||
Other | 251 | 282 | |||||
$ | 1,531 | $ | 1,423 |
(1) | Increase in prepaid pensions is primarily due to cash funding of the U.K. pension plans. |
September 30, 2014 | December 31, 2013 | ||||||
Deferred revenue | $ | 440 | $ | 475 | |||
Taxes payable | 96 | 136 | |||||
Deferred tax liabilities | 36 | 48 | |||||
Other | 281 | 247 | |||||
$ | 853 | $ | 906 |
September 30, 2014 | December 31, 2013 | ||||||
Deferred tax liabilities | $ | 535 | $ | 420 | |||
Taxes payable | 202 | 184 | |||||
Leases | 191 | 204 | |||||
Deferred revenue | 170 | 134 | |||||
Compensation and benefits | 56 | 105 | |||||
Other | 268 | 305 | |||||
$ | 1,422 | $ | 1,352 |
|
Nine months ended September 30, | ||||||||
2014 | 2013 | |||||||
Consideration | $ | 446 | $ | 26 | ||||
Intangible assets: | ||||||||
Goodwill | $ | 261 | $ | 26 | ||||
Other intangible assets | 310 | 8 | ||||||
Total | $ | 571 | $ | 34 |
|
Risk Solutions | HR Solutions | Total | |||||||||
Balance as of December 31, 2013 | $ | 6,020 | $ | 2,977 | $ | 8,997 | |||||
Goodwill related to current year acquisitions | 256 | 5 | 261 | ||||||||
Goodwill related to disposals | (14 | ) | — | (14 | ) | ||||||
Goodwill related to prior year acquisitions | (1 | ) | — | (1 | ) | ||||||
Transfer | (2 | ) | 2 | — | |||||||
Foreign currency translation | (202 | ) | (15 | ) | (217 | ) | |||||
Balance as of September 30, 2014 | $ | 6,057 | $ | 2,969 | $ | 9,026 |
September 30, 2014 | December 31, 2013 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||
Intangible assets with indefinite lives: | |||||||||||||||||||||||
Tradenames | $ | 1,019 | $ | — | $ | 1,019 | $ | 1,019 | $ | — | $ | 1,019 | |||||||||||
Intangible assets with finite lives: | |||||||||||||||||||||||
Customer related and contract based | 2,972 | 1,520 | 1,452 | 2,720 | 1,310 | 1,410 | |||||||||||||||||
Marketing, technology and other | 588 | 447 | 141 | 584 | 435 | 149 | |||||||||||||||||
$ | 4,579 | $ | 1,967 | $ | 2,612 | $ | 4,323 | $ | 1,745 | $ | 2,578 |
Risk Solutions | HR Solutions | Total | |||||||||
Remainder of 2014 | $ | 29 | $ | 60 | $ | 89 | |||||
2015 | 109 | 211 | 320 | ||||||||
2016 | 100 | 176 | 276 | ||||||||
2017 | 91 | 140 | 231 | ||||||||
2018 | 79 | 93 | 172 | ||||||||
Thereafter | 253 | 252 | 505 | ||||||||
$ | 661 | $ | 932 | $ | 1,593 |
|
September 30, 2014 | December 31, 2013 | ||||||
Cash and cash equivalents | $ | 382 | $ | 477 | |||
Short-term investments | 217 | 523 | |||||
Fiduciary assets (1) | 3,877 | 3,778 | |||||
Investments | 143 | 132 | |||||
$ | 4,619 | $ | 4,910 |
(1) | Fiduciary assets include funds held on behalf of clients but does not include fiduciary receivables. |
September 30, 2014 | December 31, 2013 | ||||||
Equity method investments | $ | 122 | $ | 113 | |||
Other investments | 13 | 10 | |||||
Fixed-maturity securities | 8 | 9 | |||||
$ | 143 | $ | 132 |
|
Three months ended September 30, | |||||||||||||||||||||||
U.K. | U.S. | Other | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Service cost | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 5 | |||||||||||
Interest cost | 58 | 52 | 32 | 28 | 12 | 11 | |||||||||||||||||
Expected return on plan assets | (82 | ) | (74 | ) | (39 | ) | (34 | ) | (15 | ) | (15 | ) | |||||||||||
Amortization of net actuarial loss | 13 | 12 | 11 | 13 | 2 | 6 | |||||||||||||||||
Total net periodic (benefit) cost | $ | (11 | ) | $ | (10 | ) | $ | 4 | $ | 7 | $ | (1 | ) | $ | 7 |
Nine months ended September 30, | |||||||||||||||||||||||
U.K. | U.S. | Other | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Service cost | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 14 | |||||||||||
Interest cost | 174 | 156 | 96 | 84 | 36 | 33 | |||||||||||||||||
Expected return on plan assets | (247 | ) | (223 | ) | (117 | ) | (103 | ) | (45 | ) | (44 | ) | |||||||||||
Amortization of net actuarial loss | 40 | 36 | 32 | 39 | 6 | 19 | |||||||||||||||||
Net periodic (benefit) cost | (33 | ) | (31 | ) | 11 | 20 | (3 | ) | 22 | ||||||||||||||
Curtailment loss (gain) and other | — | — | 1 | — | (3 | ) | — | ||||||||||||||||
Total net periodic (benefit) cost | $ | (33 | ) | $ | (31 | ) | $ | 12 | $ | 20 | $ | (6 | ) | $ | 22 |
|
Notional Amount | Derivative Assets (1) | Derivative Liabilities (2) | |||||||||||||||||||||
September 30, 2014 | December 31, 2013 | September 30, 2014 | December 31, 2013 | September 30, 2014 | December 31, 2013 | ||||||||||||||||||
Derivatives accounted for as hedges: | |||||||||||||||||||||||
Interest rate contracts | $ | — | $ | 171 | $ | — | $ | 9 | $ | — | $ | — | |||||||||||
Foreign exchange contracts | 1,106 | 1,191 | 55 | 71 | 65 | 93 | |||||||||||||||||
Total | 1,106 | 1,362 | 55 | 80 | 65 | 93 | |||||||||||||||||
Derivatives not accounted for as hedges: | |||||||||||||||||||||||
Foreign exchange contracts | 184 | 215 | — | — | — | — | |||||||||||||||||
Total | $ | 1,290 | $ | 1,577 | $ | 55 | $ | 80 | $ | 65 | $ | 93 |
(1) | Included within Other current assets ($25 million and $46 million at September 30, 2014 and December 31, 2013, respectively) or Other non-current assets ($30 million and $34 million at September 30, 2014 and December 31, 2013, respectively). |
(2) | Included within Other current liabilities ($17 million and $51 million at September 30, 2014 and December 31, 2013, respectively) or Other non-current liabilities ($48 million and $42 million at September 30, 2014 and December 31, 2013, respectively). |
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) | |||||||||||||||||||||
September 30, 2014 | December 31, 2013 | September 30, 2014 | December 31, 2013 | September 30, 2014 | December 31, 2013 | ||||||||||||||||||
Derivatives accounted for as hedges: | |||||||||||||||||||||||
Interest rate contracts | $ | — | $ | 9 | $ | — | $ | — | $ | — | $ | 9 | |||||||||||
Foreign exchange contracts | 55 | 71 | (15 | ) | (30 | ) | 40 | 41 | |||||||||||||||
Total | 55 | 80 | (15 | ) | (30 | ) | 40 | 50 | |||||||||||||||
Derivatives not accounted for as hedges: | |||||||||||||||||||||||
Foreign exchange contracts | — | — | — | — | — | — | |||||||||||||||||
Total | $ | 55 | $ | 80 | $ | (15 | ) | $ | (30 | ) | $ | 40 | $ | 50 |
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 (1) | |||||||||||||||||||||
September 30, 2014 | December 31, 2013 | September 30, 2014 | December 31, 2013 | September 30, 2014 | December 31, 2013 | ||||||||||||||||||
Derivatives accounted for as hedges: | |||||||||||||||||||||||
Interest rate contracts | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Foreign exchange contracts | 65 | 93 | (15 | ) | (30 | ) | 50 | 63 | |||||||||||||||
Total | 65 | 93 | (15 | ) | (30 | ) | 50 | 63 | |||||||||||||||
Derivatives not accounted for as hedges: | |||||||||||||||||||||||
Foreign exchange contracts | — | — | — | — | — | — | |||||||||||||||||
Total | $ | 65 | $ | 93 | $ | (15 | ) | $ | (30 | ) | $ | 50 | $ | 63 |
Gain (Loss) recognized in Accumulated Other Comprehensive Loss: | Three months ended September 30, | Nine months ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Cash flow hedges: | |||||||||||||||
Interest rate contracts (1) | $ | — | $ | — | $ | — | $ | — | |||||||
Foreign exchange contracts (2) | (3 | ) | — | 4 | (28 | ) | |||||||||
Total | $ | (3 | ) | $ | — | $ | 4 | $ | (28 | ) |
Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion): | Three months ended September 30, | Nine months ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Cash flow hedges: | |||||||||||||||
Interest rate contracts (1) | $ | — | $ | — | $ | (1 | ) | $ | (1 | ) | |||||
Foreign exchange contracts (2) | 4 | (10 | ) | (15 | ) | (7 | ) | ||||||||
Total | 4 | (10 | ) | (16 | ) | (8 | ) |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||||
Amount of Gain (Loss) Recognized in Income on Derivative (1) | Amount of Gain (Loss) Recognized in Income on Related Hedged Item | Amount of Gain (Loss) Recognized in Income on Derivative (1) (2) | Amount of Gain (Loss) Recognized in Income on Related Hedge Item (1) (2) | ||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||
Fair value hedges: | |||||||||||||||||||||||||||||||
Foreign exchange contracts (2) | $ | (9 | ) | $ | (7 | ) | $ | 9 | $ | 7 | $ | (9 | ) | $ | (8 | ) | $ | 9 | $ | 8 |
|
Fair Value Measurements Using | |||||||||||||||
Balance at September 30, 2014 | 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) | $ | 1,649 | $ | 1,647 | $ | 2 | $ | — | |||||||
Other investments: | |||||||||||||||
Fixed maturity securities: | |||||||||||||||
Corporate bonds | 1 | — | — | 1 | |||||||||||
Government bonds | 7 | — | 7 | — | |||||||||||
Equity securities | 11 | 6 | 5 | — | |||||||||||
Derivatives: | |||||||||||||||
Interest rate contracts | — | — | — | — | |||||||||||
Foreign exchange contracts | 55 | — | 55 | — | |||||||||||
Liabilities: | |||||||||||||||
Derivatives: | |||||||||||||||
Foreign exchange contracts | 65 | — | 65 | — |
Fair Value Measurements Using | |||||||||||||||
Balance at December 31, 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) | $ | 2,079 | $ | 2,054 | $ | 25 | $ | — | |||||||
Other investments: | |||||||||||||||
Fixed maturity securities: | |||||||||||||||
Corporate bonds | 2 | — | — | 2 | |||||||||||
Government bonds | 7 | — | 7 | — | |||||||||||
Equity securities | 13 | 6 | 7 | — | |||||||||||
Derivatives: | |||||||||||||||
Interest rate contracts | 9 | — | 9 | — | |||||||||||
Foreign exchange contracts | 71 | — | 71 | — | |||||||||||
Liabilities: | |||||||||||||||
Derivatives: | |||||||||||||||
Foreign exchange contracts | 93 | — | 93 | — |
September 30, 2014 | December 31, 2013 | ||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||
Long-term debt | $ | 4,840 | $ | 5,190 | $ | 3,686 | $ | 3,894 |
|
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Risk Solutions | $ | 1,836 | $ | 1,821 | $ | 5,778 | $ | 5,736 | |||||||
HR Solutions | 1,057 | 981 | 3,004 | 2,891 | |||||||||||
Intersegment eliminations | (13 | ) | (8 | ) | (36 | ) | (21 | ) | |||||||
Total revenue | $ | 2,880 | $ | 2,794 | $ | 8,746 | $ | 8,606 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Retail brokerage | $ | 1,458 | $ | 1,424 | $ | 4,619 | $ | 4,548 | |||||||
Reinsurance brokerage | 371 | 389 | 1,140 | 1,167 | |||||||||||
Total Risk Solutions Segment | 1,829 | 1,813 | 5,759 | 5,715 | |||||||||||
Consulting services | 466 | 406 | 1,245 | 1,176 | |||||||||||
Outsourcing | 604 | 587 | 1,788 | 1,746 | |||||||||||
Intrasegment | (13 | ) | (12 | ) | (29 | ) | (31 | ) | |||||||
Total HR Solutions Segment | 1,057 | 981 | 3,004 | 2,891 | |||||||||||
Intersegment | (13 | ) | (8 | ) | (36 | ) | (21 | ) | |||||||
Total commissions, fees and other revenue | $ | 2,873 | $ | 2,786 | $ | 8,727 | $ | 8,585 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Risk Solutions | $ | 7 | $ | 8 | $ | 19 | $ | 21 | |||||||
HR Solutions | — | — | — | — | |||||||||||
Total fiduciary investment income | $ | 7 | $ | 8 | $ | 19 | $ | 21 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Risk Solutions | $ | 343 | $ | 333 | $ | 1,205 | $ | 1,127 | |||||||
HR Solutions | 113 | 75 | 249 | 162 | |||||||||||
Segment income before income taxes | 456 | 408 | 1,454 | 1,289 | |||||||||||
Unallocated expenses | (39 | ) | (44 | ) | (123 | ) | (133 | ) | |||||||
Interest income | 3 | 3 | 7 | 6 | |||||||||||
Interest expense | (65 | ) | (53 | ) | (188 | ) | (153 | ) | |||||||
Other income | 35 | 39 | 34 | 54 | |||||||||||
Income before income taxes | $ | 390 | $ | 353 | $ | 1,184 | $ | 1,063 |
|
Three months ended September 30, 2014 | ||||||||||||||||||||
Other | ||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | |||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | |||||||||||||||
Revenue | ||||||||||||||||||||
Commissions, fees and other | $ | — | $ | — | $ | 2,873 | $ | — | $ | 2,873 | ||||||||||
Fiduciary investment income | — | — | 7 | — | 7 | |||||||||||||||
Total revenue | — | — | 2,880 | — | 2,880 | |||||||||||||||
Expenses | ||||||||||||||||||||
Compensation and benefits | 4 | 5 | 1,698 | — | 1,707 | |||||||||||||||
Other general expenses | 6 | 14 | 736 | — | 756 | |||||||||||||||
Total operating expenses | 10 | 19 | 2,434 | — | 2,463 | |||||||||||||||
Operating (loss) income | (10 | ) | (19 | ) | 446 | — | 417 | |||||||||||||
Interest income | (2 | ) | 1 | 4 | — | 3 | ||||||||||||||
Interest expense | (25 | ) | (42 | ) | 2 | — | (65 | ) | ||||||||||||
Intercompany interest income (expense) | 113 | (73 | ) | (40 | ) | — | — | |||||||||||||
Other income | 2 | 2 | 31 | — | 35 | |||||||||||||||
Income (loss) before taxes | 78 | (131 | ) | 443 | — | 390 | ||||||||||||||
Income tax expense (benefit) | 16 | (52 | ) | 111 | — | 75 | ||||||||||||||
Income (loss) before equity in earnings of subsidiaries | 62 | (79 | ) | 332 | — | 315 | ||||||||||||||
Equity in earnings of subsidiaries, net of tax | 247 | 202 | — | (449 | ) | — | ||||||||||||||
Net income | 309 | 123 | 332 | (449 | ) | 315 | ||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 6 | — | 6 | |||||||||||||||
Net income attributable to Aon shareholders | $ | 309 | $ | 123 | $ | 326 | $ | (449 | ) | $ | 309 |
Three months ended September 30, 2013 | ||||||||||||||||||||
Other | ||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | |||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | |||||||||||||||
Revenue | ||||||||||||||||||||
Commissions, fees and other | $ | 1 | $ | — | $ | 2,785 | $ | — | $ | 2,786 | ||||||||||
Fiduciary investment income | — | — | 8 | — | 8 | |||||||||||||||
Total revenue | 1 | — | 2,793 | — | 2,794 | |||||||||||||||
Expenses | ||||||||||||||||||||
Compensation and benefits | 11 | 14 | 1,641 | — | 1,666 | |||||||||||||||
Other general expenses | — | 5 | 759 | — | 764 | |||||||||||||||
Total operating expenses | 11 | 19 | 2,400 | — | 2,430 | |||||||||||||||
Operating (loss) income | (10 | ) | (19 | ) | 393 | — | 364 | |||||||||||||
Interest income | — | 1 | 2 | — | 3 | |||||||||||||||
Interest expense | (6 | ) | (39 | ) | (8 | ) | — | (53 | ) | |||||||||||
Intercompany interest income (expense) | 25 | 11 | (36 | ) | — | — | ||||||||||||||
Other income | — | 13 | 26 | — | 39 | |||||||||||||||
Income (loss) before taxes | 9 | (33 | ) | 377 | — | 353 | ||||||||||||||
Income tax (benefit) expense | (2 | ) | (14 | ) | 105 | — | 89 | |||||||||||||
Income (loss) before equity in earnings of subsidiaries | 11 | (19 | ) | 272 | — | 264 | ||||||||||||||
Equity in earnings of subsidiaries, net of tax | 245 | 127 | — | (372 | ) | — | ||||||||||||||
Net income | 256 | 108 | 272 | (372 | ) | 264 | ||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 8 | — | 8 | |||||||||||||||
Net income attributable to Aon shareholders | $ | 256 | $ | 108 | $ | 264 | $ | (372 | ) | $ | 256 |
Nine months ended September 30, 2014 | ||||||||||||||||||||
Other | ||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | |||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | |||||||||||||||
Revenue | ||||||||||||||||||||
Commissions, fees and other | $ | — | $ | — | $ | 8,727 | $ | — | $ | 8,727 | ||||||||||
Fiduciary investment income | — | — | 19 | — | 19 | |||||||||||||||
Total revenue | — | — | 8,746 | — | 8,746 | |||||||||||||||
Expenses | ||||||||||||||||||||
Compensation and benefits | 29 | 19 | 5,118 | — | 5,166 | |||||||||||||||
Other general expenses | 18 | 37 | 2,194 | — | 2,249 | |||||||||||||||
Total operating expenses | 47 | 56 | 7,312 | — | 7,415 | |||||||||||||||
Operating (loss) income | (47 | ) | (56 | ) | 1,434 | — | 1,331 | |||||||||||||
Interest income | (6 | ) | 1 | 12 | — | 7 | ||||||||||||||
Interest expense | (49 | ) | (105 | ) | (34 | ) | — | (188 | ) | |||||||||||
Intercompany interest income (expense) | 335 | (220 | ) | (115 | ) | — | — | |||||||||||||
Other income | 1 | 10 | 23 | — | 34 | |||||||||||||||
Income (loss) before taxes | 234 | (370 | ) | 1,320 | — | 1,184 | ||||||||||||||
Income tax expense (benefit) | 49 | (144 | ) | 315 | — | 220 | ||||||||||||||
Income (loss) before equity in earnings of subsidiaries | 185 | (226 | ) | 1,005 | — | 964 | ||||||||||||||
Equity in earnings of subsidiaries, net of tax | 753 | 734 | — | (1,487 | ) | — | ||||||||||||||
Net income | 938 | 508 | 1,005 | (1,487 | ) | 964 | ||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 26 | — | 26 | |||||||||||||||
Net income attributable to Aon shareholders | $ | 938 | $ | 508 | $ | 979 | $ | (1,487 | ) | $ | 938 |
Nine months ended September 30, 2013 | ||||||||||||||||||||
Other | ||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | |||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | |||||||||||||||
Revenue | ||||||||||||||||||||
Commissions, fees and other | $ | 2 | $ | — | $ | 8,583 | $ | — | $ | 8,585 | ||||||||||
Fiduciary investment income | — | — | 21 | — | 21 | |||||||||||||||
Total revenue | 2 | — | 8,604 | — | 8,606 | |||||||||||||||
Expenses | ||||||||||||||||||||
Compensation and benefits | 27 | 34 | 5,042 | — | 5,103 | |||||||||||||||
Other general expenses | 14 | 29 | 2,304 | — | 2,347 | |||||||||||||||
Total operating expenses | 41 | 63 | 7,346 | — | 7,450 | |||||||||||||||
Operating (loss) income | (39 | ) | (63 | ) | 1,258 | — | 1,156 | |||||||||||||
Interest income | 1 | 2 | 3 | — | 6 | |||||||||||||||
Interest expense | (12 | ) | (106 | ) | (35 | ) | — | (153 | ) | |||||||||||
Intercompany interest (expense) income | 11 | 96 | (107 | ) | — | — | ||||||||||||||
Other income | — | 10 | 44 | — | 54 | |||||||||||||||
(Loss) income before taxes | (39 | ) | (61 | ) | 1,163 | — | 1,063 | |||||||||||||
Income tax (benefit) expense | (11 | ) | (24 | ) | 310 | — | 275 | |||||||||||||
(Loss) income before equity in earnings of subsidiaries | (28 | ) | (37 | ) | 853 | — | 788 | |||||||||||||
Equity in earnings of subsidiaries, net of tax | 786 | 617 | — | (1,403 | ) | — | ||||||||||||||
Net income | 758 | 580 | 853 | (1,403 | ) | 788 | ||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 30 | — | 30 | |||||||||||||||
Net income attributable to Aon shareholders | $ | 758 | $ | 580 | $ | 823 | $ | (1,403 | ) | $ | 758 |
Three months ended September 30, 2014 | ||||||||||||||||||||
Other | ||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | |||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | |||||||||||||||
Net income | $ | 309 | $ | 123 | $ | 332 | $ | (449 | ) | $ | 315 | |||||||||
Less: Net income attributable to noncontrolling interests | — | — | 6 | — | 6 | |||||||||||||||
Net income attributable to Aon shareholders | $ | 309 | $ | 123 | $ | 326 | $ | (449 | ) | $ | 309 | |||||||||
Other comprehensive (loss) income, net of tax: | ||||||||||||||||||||
Change in fair value of investments | — | — | — | — | — | |||||||||||||||
Change in fair value of derivatives | — | (1 | ) | (7 | ) | — | (8 | ) | ||||||||||||
Foreign currency translation adjustments | — | (17 | ) | (301 | ) | — | (318 | ) | ||||||||||||
Post-retirement benefit obligation | — | 6 | 20 | — | 26 | |||||||||||||||
Total other comprehensive income | — | (12 | ) | (288 | ) | — | (300 | ) | ||||||||||||
Equity in other comprehensive loss of subsidiaries, net of tax | (300 | ) | (285 | ) | — | 585 | — | |||||||||||||
Less: Other comprehensive income attributable to noncontrolling interests | — | — | — | — | — | |||||||||||||||
Total other comprehensive income attributable to Aon shareholders | (300 | ) | (297 | ) | (288 | ) | 585 | (300 | ) | |||||||||||
Comprehensive income attributable to Aon shareholders | $ | 9 | $ | (174 | ) | $ | 38 | $ | 136 | $ | 9 |
Three months ended September 30, 2013 | ||||||||||||||||||||
Other | ||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | |||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | |||||||||||||||
Net income | $ | 256 | $ | 108 | $ | 272 | $ | (372 | ) | $ | 264 | |||||||||
Less: Net income attributable to noncontrolling interests | — | — | 8 | — | 8 | |||||||||||||||
Net income attributable to Aon shareholders | $ | 256 | $ | 108 | $ | 264 | $ | (372 | ) | $ | 256 | |||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||
Change in fair value of investments | — | (4 | ) | (10 | ) | — | (14 | ) | ||||||||||||
Change in fair value of derivatives | — | 2 | 7 | — | 9 | |||||||||||||||
Foreign currency translation adjustments | — | 6 | 149 | — | 155 | |||||||||||||||
Post-retirement benefit obligation | — | 7 | 17 | — | 24 | |||||||||||||||
Total other comprehensive income | — | 11 | 163 | — | 174 | |||||||||||||||
Equity in other comprehensive income of subsidiaries, net of tax | 170 | 157 | — | (327 | ) | — | ||||||||||||||
Less: Other comprehensive income attributable to noncontrolling interests | — | — | 3 | — | 3 | |||||||||||||||
Total other comprehensive income attributable to Aon shareholders | 170 | 168 | 160 | (327 | ) | 171 | ||||||||||||||
Comprehensive income attributable to Aon Shareholders | $ | 426 | $ | 276 | $ | 424 | $ | (699 | ) | $ | 427 |
Nine months ended September 30, 2014 | ||||||||||||||||||||
Other | ||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | |||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | |||||||||||||||
Net income | $ | 938 | $ | 508 | $ | 1,005 | $ | (1,487 | ) | $ | 964 | |||||||||
Less: Net income attributable to noncontrolling interests | — | — | 26 | — | 26 | |||||||||||||||
Net income attributable to Aon shareholders | $ | 938 | $ | 508 | $ | 979 | $ | (1,487 | ) | $ | 938 | |||||||||
Other comprehensive (loss) income, net of tax: | ||||||||||||||||||||
Change in fair value of investments | — | — | (1 | ) | — | (1 | ) | |||||||||||||
Change in fair value of derivatives | — | (1 | ) | 14 | — | 13 | ||||||||||||||
Foreign currency translation adjustments | — | (19 | ) | (209 | ) | — | (228 | ) | ||||||||||||
Post-retirement benefit obligation | — | 17 | 53 | — | 70 | |||||||||||||||
Total other comprehensive income | — | (3 | ) | (143 | ) | — | (146 | ) | ||||||||||||
Equity in other comprehensive loss of subsidiaries, net of tax | (144 | ) | (142 | ) | — | 286 | — | |||||||||||||
Less: Other comprehensive income attributable to noncontrolling interests | — | — | (2 | ) | — | (2 | ) | |||||||||||||
Total other comprehensive income attributable to Aon shareholders | (144 | ) | (145 | ) | (141 | ) | 286 | (144 | ) | |||||||||||
Comprehensive income attributable to Aon shareholders | $ | 794 | $ | 363 | $ | 838 | $ | (1,201 | ) | $ | 794 |
Nine months ended September 30, 2013 | ||||||||||||||||||||
Other | ||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | |||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | |||||||||||||||
Net income | $ | 758 | $ | 580 | $ | 853 | $ | (1,403 | ) | $ | 788 | |||||||||
Less: Net income attributable to noncontrolling interests | — | — | 30 | — | 30 | |||||||||||||||
Net income attributable to Aon shareholders | $ | 758 | $ | 580 | $ | 823 | $ | (1,403 | ) | $ | 758 | |||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||
Change in fair value of investments | — | — | (1 | ) | — | (1 | ) | |||||||||||||
Change in fair value of derivatives | — | 5 | (17 | ) | — | (12 | ) | |||||||||||||
Foreign currency translation adjustments | — | (14 | ) | (63 | ) | — | (77 | ) | ||||||||||||
Post-retirement benefit obligation | — | 22 | 43 | — | 65 | |||||||||||||||
Total other comprehensive income | — | 13 | (38 | ) | — | (25 | ) | |||||||||||||
Equity in other comprehensive income of subsidiaries, net of tax | (27 | ) | (38 | ) | — | 65 | — | |||||||||||||
Less: Other comprehensive income attributable to noncontrolling interests | — | — | 1 | — | 1 | |||||||||||||||
Total other comprehensive income attributable to Aon shareholders | (27 | ) | (25 | ) | (39 | ) | 65 | (26 | ) | |||||||||||
Comprehensive income attributable to Aon Shareholders | $ | 731 | $ | 555 | $ | 784 | $ | (1,338 | ) | $ | 732 |
As of September 30, 2014 | ||||||||||||||||||||
Other | ||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | |||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | |||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 568 | $ | 1,444 | $ | (1,630 | ) | $ | 382 | |||||||||
Short-term investments | — | 59 | 158 | — | 217 | |||||||||||||||
Receivables, net | — | — | 2,633 | (3 | ) | 2,630 | ||||||||||||||
Fiduciary assets | — | — | 10,815 | — | 10,815 | |||||||||||||||
Intercompany receivables | 321 | 2,696 | 9,419 | (12,436 | ) | — | ||||||||||||||
Other current assets | 1 | 205 | 669 | (164 | ) | 711 | ||||||||||||||
Total Current Assets | 322 | 3,528 | 25,138 | (14,233 | ) | 14,755 | ||||||||||||||
Goodwill | — | — | 9,026 | — | 9,026 | |||||||||||||||
Intangible assets, net | — | — | 2,612 | — | 2,612 | |||||||||||||||
Fixed assets, net | — | — | 760 | — | 760 | |||||||||||||||
Investments | — | 79 | 64 | — | 143 | |||||||||||||||
Intercompany receivables | 7,408 | 2,162 | 2,211 | (11,781 | ) | — | ||||||||||||||
Other non-current assets | 169 | 498 | 1,550 | (686 | ) | 1,531 | ||||||||||||||
Investment in subsidiary | 5,752 | 16,469 | — | (22,221 | ) | — | ||||||||||||||
TOTAL ASSETS | $ | 13,651 | $ | 22,736 | $ | 41,361 | $ | (48,921 | ) | $ | 28,827 | |||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||
Fiduciary liabilities | $ | — | $ | — | $ | 10,815 | $ | — | $ | 10,815 | ||||||||||
Short-term debt and current portion of long-term debt | — | 649 | 11 | — | 660 | |||||||||||||||
Accounts payable and accrued liabilities | 1,683 | 34 | 1,444 | (1,633 | ) | 1,528 | ||||||||||||||
Intercompany payables | 8 | 9,258 | 3,170 | (12,436 | ) | — | ||||||||||||||
Other current liabilities | 72 | 47 | 898 | (164 | ) | 853 | ||||||||||||||
Total Current Liabilities | 1,763 | 9,988 | 16,338 | (14,233 | ) | 13,856 | ||||||||||||||
Long-term debt | 2,568 | 1,917 | 355 | — | 4,840 | |||||||||||||||
Pension, other post-retirement and other post-employment liabilities | — | 854 | 583 | — | 1,437 | |||||||||||||||
Intercompany payables | 2,100 | 7,277 | 2,404 | (11,781 | ) | — | ||||||||||||||
Other non-current liabilities | 5 | 108 | 1,995 | (686 | ) | 1,422 | ||||||||||||||
TOTAL LIABILITIES | 6,436 | 20,144 | 21,675 | (26,700 | ) | 21,555 | ||||||||||||||
TOTAL AON SHAREHOLDERS' EQUITY | 7,215 | 2,592 | 19,629 | (22,221 | ) | 7,215 | ||||||||||||||
Noncontrolling interests | — | — | 57 | — | 57 | |||||||||||||||
TOTAL EQUITY | 7,215 | 2,592 | 19,686 | (22,221 | ) | 7,272 | ||||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 13,651 | $ | 22,736 | $ | 41,361 | $ | (48,921 | ) | $ | 28,827 |
As of December 31, 2013 | ||||||||||||||||||||
Other | ||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | |||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | |||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 247 | $ | 1,246 | $ | (1,016 | ) | $ | 477 | |||||||||
Short-term investments | — | 163 | 360 | — | 523 | |||||||||||||||
Receivables, net | — | 4 | 2,892 | — | 2,896 | |||||||||||||||
Fiduciary assets | — | — | 11,871 | — | 11,871 | |||||||||||||||
Intercompany receivables | 186 | 3,503 | 5,452 | (9,141 | ) | — | ||||||||||||||
Other current assets | — | 69 | 513 | (19 | ) | 563 | ||||||||||||||
Total Current Assets | 186 | 3,986 | 22,334 | (10,176 | ) | 16,330 | ||||||||||||||
Goodwill | — | — | 8,997 | — | 8,997 | |||||||||||||||
Intangible assets, net | — | — | 2,578 | — | 2,578 | |||||||||||||||
Fixed assets, net | — | — | 791 | — | 791 | |||||||||||||||
Investments | — | 57 | 75 | — | 132 | |||||||||||||||
Intercompany receivables | 7,166 | 2,178 | 2,201 | (11,545 | ) | — | ||||||||||||||
Other non-current assets | 146 | 560 | 1,421 | (704 | ) | 1,423 | ||||||||||||||
Investment in subsidiary | 4,607 | 11,694 | — | (16,301 | ) | — | ||||||||||||||
TOTAL ASSETS | $ | 12,105 | $ | 18,475 | $ | 38,397 | $ | (38,726 | ) | $ | 30,251 | |||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||
Fiduciary liabilities | $ | — | $ | — | $ | 11,871 | $ | — | $ | 11,871 | ||||||||||
Short-term debt and current portion of long-term debt | — | — | 707 | (4 | ) | 703 | ||||||||||||||
Accounts payable and accrued liabilities | 1,036 | 62 | 1,849 | (1,016 | ) | 1,931 | ||||||||||||||
Intercompany payables | 15 | 5,449 | 3,677 | (9,141 | ) | — | ||||||||||||||
Other current liabilities | 12 | 47 | 866 | (19 | ) | 906 | ||||||||||||||
Total Current Liabilities | 1,063 | 5,558 | 18,970 | (10,180 | ) | 15,411 | ||||||||||||||
Long-term debt | 792 | 2,512 | 378 | 4 | 3,686 | |||||||||||||||
Pension, other post-retirement and other post-employment liabilities | — | 925 | 682 | — | 1,607 | |||||||||||||||
Intercompany payables | 2,100 | 7,267 | 2,178 | (11,545 | ) | — | ||||||||||||||
Other non-current liabilities | 5 | 159 | 1,892 | (704 | ) | 1,352 | ||||||||||||||
TOTAL LIABILITIES | 3,960 | 16,421 | 24,100 | (22,425 | ) | 22,056 | ||||||||||||||
TOTAL AON SHAREHOLDERS' EQUITY | 8,145 | 2,054 | 14,247 | (16,301 | ) | 8,145 | ||||||||||||||
Noncontrolling interests | — | — | 50 | — | 50 | |||||||||||||||
TOTAL EQUITY | 8,145 | 2,054 | 14,297 | (16,301 | ) | 8,195 | ||||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 12,105 | $ | 18,475 | $ | 38,397 | $ | (38,726 | ) | $ | 30,251 |
Nine months ended September 30, 2014 | ||||||||||||||||||||
Aon | Aon | Other Non-Guarantor | Consolidating | |||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | |||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||||||||||
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES | $ | 309 | $ | (348 | ) | $ | 922 | $ | — | $ | 883 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||||||||||
Sales of long-term investments | — | 39 | 12 | — | 51 | |||||||||||||||
Purchase of long-term investments | — | (19 | ) | — | — | (19 | ) | |||||||||||||
Net sales of short-term investments - non-fiduciary | — | 103 | 198 | — | 301 | |||||||||||||||
Acquisition of businesses, net of cash acquired | — | — | (464 | ) | — | (464 | ) | |||||||||||||
Proceeds from sale of businesses | — | — | 48 | — | 48 | |||||||||||||||
Capital expenditures | — | — | (179 | ) | — | (179 | ) | |||||||||||||
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES | — | 123 | (385 | ) | — | (262 | ) | |||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||||||||||
Share repurchase | (1,750 | ) | — | — | — | (1,750 | ) | |||||||||||||
Advances (to) from affiliates | (253 | ) | 496 | 371 | (614 | ) | — | |||||||||||||
Issuance of shares for employee benefit plans | 58 | — | — | — | 58 | |||||||||||||||
Issuance of debt | 2,714 | 1,541 | — | — | 4,255 | |||||||||||||||
Repayment of debt | (877 | ) | (1,491 | ) | (705 | ) | — | (3,073 | ) | |||||||||||
Cash dividends to shareholders | (201 | ) | — | — | — | (201 | ) | |||||||||||||
Purchase of shares from noncontrolling interests | — | — | 1 | — | 1 | |||||||||||||||
Dividends paid to noncontrolling interests | — | — | (18 | ) | — | (18 | ) | |||||||||||||
Proceeds from sale-leaseback | — | — | 25 | — | 25 | |||||||||||||||
CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES | (309 | ) | 546 | (326 | ) | (614 | ) | (703 | ) | |||||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | — | — | (13 | ) | — | (13 | ) | |||||||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | — | 321 | 198 | (614 | ) | (95 | ) | |||||||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | — | 247 | 1,246 | (1,016 | ) | 477 | ||||||||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | — | $ | 568 | $ | 1,444 | $ | (1,630 | ) | $ | 382 |
Nine months ended September 30, 2013 | ||||||||||||||||||||
Other | ||||||||||||||||||||
Aon | Aon | Non-Guarantor | Consolidating | |||||||||||||||||
(millions) | plc | Corporation | Subsidiaries | Adjustments | Consolidated | |||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||||||||||
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES | $ | (14 | ) | $ | (195 | ) | $ | 1,193 | $ | — | $ | 984 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||||||||||
Sales of long-term investments | — | 8 | 73 | — | 81 | |||||||||||||||
Purchase of long-term investments | — | (13 | ) | — | — | (13 | ) | |||||||||||||
Net sales of short-term investments - non-fiduciary | — | (35 | ) | 22 | — | (13 | ) | |||||||||||||
Acquisition of businesses, net of cash acquired | — | — | (26 | ) | — | (26 | ) | |||||||||||||
Proceeds from sale of businesses | — | — | 6 | — | 6 | |||||||||||||||
Capital expenditures | — | — | (174 | ) | — | (174 | ) | |||||||||||||
CASH USED FOR INVESTING ACTIVITIES | — | (40 | ) | (99 | ) | — | (139 | ) | ||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||||||||||
Share repurchase | (1,025 | ) | — | — | — | (1,025 | ) | |||||||||||||
Advances from (to) affiliates | 405 | 610 | (1,014 | ) | (1 | ) | — | |||||||||||||
Issuance of shares for employee benefit plans | 84 | — | — | — | 84 | |||||||||||||||
Issuance of debt | 1,145 | 2,894 | 231 | — | 4,270 | |||||||||||||||
Repayment of debt | (449 | ) | (3,177 | ) | (244 | ) | — | (3,870 | ) | |||||||||||
Cash dividends to shareholders | (159 | ) | — | — | — | (159 | ) | |||||||||||||
Purchase of shares from noncontrolling interests | — | — | (6 | ) | — | (6 | ) | |||||||||||||
Dividends paid to noncontrolling interests | — | — | (13 | ) | — | (13 | ) | |||||||||||||
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES | 1 | 327 | (1,046 | ) | (1 | ) | (719 | ) | ||||||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | — | — | (48 | ) | — | (48 | ) | |||||||||||||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (13 | ) | 92 | — | (1 | ) | 78 | |||||||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 131 | 199 | — | (39 | ) | 291 | ||||||||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 118 | $ | 291 | $ | — | $ | (40 | ) | $ | 369 |
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