AON PLC, 10-Q filed on 10/31/2014
Quarterly Report
Document and Entity Information
9 Months Ended
Sep. 30, 2014
Document and Entity Information
 
Entity Registrant Name
Aon plc 
Entity Central Index Key
0000315293 
Document Type
10-Q 
Document Period End Date
Sep. 30, 2014 
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
285,136,690 
Document Fiscal Year Focus
2014 
Document Fiscal Period Focus
Q3 
Condensed Consolidated Statements of Income (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Revenue
 
 
 
 
Commissions, fees and other
$ 2,873 
$ 2,786 
$ 8,727 
$ 8,585 
Fiduciary investment income
19 
21 
Total revenue
2,880 
2,794 
8,746 
8,606 
Expenses
 
 
 
 
Compensation and benefits
1,707 
1,666 
5,166 
5,103 
Other general expenses
756 
764 
2,249 
2,347 
Total operating expenses
2,463 
2,430 
7,415 
7,450 
Operating income
417 
364 
1,331 
1,156 
Interest income
Interest expense
(65)
(53)
(188)
(153)
Other income
35 
39 
34 
54 
Income before income taxes
390 
353 
1,184 
1,063 
Income taxes
75 
89 
220 
275 
Net income
315 
264 
964 
788 
Less: Net income attributable to noncontrolling interests
26 
30 
Net income attributable to Aon shareholders
$ 309 
$ 256 
$ 938 
$ 758 
Basic net income per share attributable to Aon shareholders
$ 1.06 
$ 0.83 
$ 3.15 
$ 2.42 
Diluted net income per share attributable to Aon shareholders
$ 1.04 
$ 0.82 
$ 3.11 
$ 2.39 
Cash dividends per share paid on ordinary shares
$ 0.25 
$ 0.18 
$ 0.68 
$ 0.51 
Weighted average ordinary shares outstanding - basic (in shares)
292.3 1
309.5 1
298.1 1
313.2 1
Weighted average ordinary shares outstanding - diluted (in shares)
296.1 
312.9 
301.6 
316.7 
Condensed Consolidated Statements of Comprehensive Income (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Statement of Comprehensive Income [Abstract]
 
 
 
 
Net income
$ 315 
$ 264 
$ 964 
$ 788 
Less: Net income attributable to noncontrolling interests
26 
30 
Net income attributable to Aon shareholders
309 
256 
938 
758 
Other comprehensive (loss) income, net of tax:
 
 
 
 
Change in fair value of investments
(14)
(1)
(1)
Change in fair value of derivatives
(8)
13 
(12)
Foreign currency translation adjustments
(318)
155 
(228)
(77)
Post-retirement benefit obligation
26 
24 
70 
65 
Total other comprehensive (loss) income
(300)
174 
(146)
(25)
Less: Other comprehensive income (loss) attributable to noncontrolling interests
(2)
Total other comprehensive (loss) income attributable to Aon shareholders
(300)
171 
(144)
(26)
Comprehensive income attributable to Aon shareholders
$ 9 
$ 427 
$ 794 
$ 732 
Condensed Consolidated Statements of Financial Position (USD $)
In Millions, unless otherwise specified
Sep. 30, 2014
Dec. 31, 2013
CURRENT ASSETS
 
 
Cash and cash equivalents
$ 382 
$ 477 
Short-term investments
217 
523 
Receivables, net
2,630 
2,896 
Fiduciary assets
10,815 
11,871 
Other current assets
711 
563 
Total Current Assets
14,755 
16,330 
Goodwill
9,026 
8,997 
Intangible assets, net
2,612 
2,578 
Fixed assets, net
760 
791 
Investments
143 
132 
Other non-current assets
1,531 
1,423 
TOTAL ASSETS
28,827 
30,251 
CURRENT LIABILITIES
 
 
Fiduciary liabilities
10,815 
11,871 
Short-term debt and current portion of long-term debt
660 
703 
Accounts payable and accrued liabilities
1,528 
1,931 
Other current liabilities
853 
906 
Total Current Liabilities
13,856 
15,411 
Long-term debt
4,840 
3,686 
Pension, other post-retirement and other post-employment liabilities
1,437 
1,607 
Other non-current liabilities
1,422 
1,352 
TOTAL LIABILITIES
21,555 
22,056 
EQUITY
 
 
Ordinary shares - $0.01 nominal value Authorized: 750 shares (issued: 2014 - 285.1; 2013 - 300.7)
Additional paid-in capital
5,012 
4,785 
Retained earnings
4,718 
5,731 
Accumulated other comprehensive loss
(2,518)
(2,374)
TOTAL AON SHAREHOLDERS' EQUITY
7,215 
8,145 
Noncontrolling interests
57 
50 
TOTAL EQUITY
7,272 
8,195 
TOTAL LIABILITIES AND EQUITY
$ 28,827 
$ 30,251 
Condensed Consolidated Statements of Financial Position (Parenthetical) (USD $)
In Millions, except Per Share data, unless otherwise specified
Sep. 30, 2014
Dec. 31, 2013
Statement of Financial Position [Abstract]
 
 
Common stock, nominal or par value (in dollars per share)
$ 0.01 
$ 0.01 
Common stock, Authorized shares
750 
750 
Common stock, issued shares
285.1 
300.7 
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, 2013
$ 8,195 
$ 4,788 
$ 5,731 
$ (2,374)
$ 50 
Beginning Balance (in shares) at Dec. 31, 2013
300.7 
300.7 
 
 
 
Increase (Decrease) in Shareholders' Equity
 
 
 
 
 
Net income
964 
938 
26 
Shares issued - employee benefit plans (in shares)
 
0.4 
 
 
 
Shares issued - employee benefit plans
28 
28 
Shares issued - employee compensation (in shares)
 
4.4 
 
 
 
Shares issued - employee compensation
(120)
(120)
Shares purchased (in shares)
 
(20.4)
 
 
 
Shares purchased
(1,750)
(1,750)
Tax benefit - employee benefit plans
72 
72 
Share-based compensation expense
247 
247 
Dividends to shareholders
(201)
(201)
Net change in fair value of investments
(1)
(1)
Net change in fair value of derivatives
13 
13 
Net foreign currency translation adjustments
(228)
(226)
(2)
Net post-retirement benefit obligation
70 
70 
Sales (purchases) of shares to (from) noncontrolling interests
(1)
(1)
Dividends paid to non-controlling interests on subsidiary common stock
(18)
(18)
Ending Balance at Sep. 30, 2014
$ 7,272 
$ 5,015 
$ 4,718 
$ (2,518)
$ 57 
Ending Balance (in shares) at Sep. 30, 2014
285.1 
285.1 
 
 
 
Condensed Consolidated Statements of Cash Flows (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES
 
 
Net income
$ 964 
$ 788 
Adjustments to reconcile net income to cash provided by operating activities:
 
 
Gain from sales of businesses and investments, net
(41)
(28)
Depreciation of fixed assets
183 
177 
Amortization of intangible assets
263 
296 
Share-based compensation expense
247 
207 
Deferred income taxes
77 
100 
Change in assets and liabilities:
 
 
Fiduciary receivables
988 
684 
Short term investments - funds held on behalf of clients
(177)
(369)
Fiduciary liabilities
(811)
(315)
Receivables, net
220 
374 
Accounts payable and accrued liabilities
(408)
(330)
Restructuring reserves
(75)
(7)
Current income taxes
(211)
(197)
Pension, other post-retirement and other post-employment liabilities
(299)
(401)
Other assets and liabilities
(37)
CASH PROVIDED BY OPERATING ACTIVITIES
883 
984 
CASH FLOWS FROM INVESTING ACTIVITIES
 
 
Proceeds from sale of long-term investments
51 
81 
Purchases of long-term investments
(19)
(13)
Net sales (purchases) of short-term investments - non-fiduciary
301 
(13)
Acquisition of businesses, net of cash acquired
(464)
(26)
Proceeds from sale of businesses
48 
Capital expenditures
(179)
(174)
CASH USED FOR INVESTING ACTIVITIES
(262)
(139)
CASH FLOWS FROM FINANCING ACTIVITIES
 
 
Share repurchase
(1,750)
(1,025)
Issuance of shares for employee benefit plans
58 
84 
Issuance of debt
4,255 
4,270 
Repayment of debt
(3,073)
(3,870)
Cash dividends to shareholders
(201)
(159)
Sales (purchases) of shares to (from) noncontrolling interests
(1)
Dividends paid to noncontrolling interests
18 
13 
Proceeds from sale-leaseback
25 
CASH USED FOR FINANCING ACTIVITIES
(703)
(719)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
(13)
(48)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
(95)
78 
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
477 
291 
CASH AND CASH EQUIVALENTS AT END OF PERIOD
382 
369 
Supplemental disclosures:
 
 
Interest paid
194 
186 
Income taxes paid, net of refunds
$ 280 
$ 330 
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").  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, 2013.  The results for the three and nine months ended September 30, 2014 are not necessarily indicative of operating results that may be expected for the full year ending December 31, 2014.
 
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 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

Revenue Recognition

In May 2014, the Financial Accounting Standards Board ("FASB") issued new accounting guidance on revenue from contracts with customers, which will supersede nearly all existing revenue recognition guidance under U.S. GAAP.  The core principal of the guidance is that an entity should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.  The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The guidance is effective for Aon in the first quarter of 2017 and early adoption is not permitted. The guidance permits two methods of transition upon adoption; full retrospective and modified retrospective. Under the full retrospective method, prior periods would be restated under the new revenue standard, providing a comparable view across all periods presented. Under the modified retrospective method, prior periods would not be restated. Rather, revenues and other disclosures for pre-2017 periods would be provided in the notes to the financial statements as previously reported under the current revenue standard. The impact from the adoption of this guidance on the Company's Condensed Consolidated Financial Statements cannot be determined at this time. The Company is also working to determine the appropriate method of transition to the guidance.

Discontinued Operations

In April 2014, the FASB issued new accounting guidance that increased the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. The guidance is effective for Aon in the first quarter of 2015. The adoption of this guidance is not expected to have a material impact on the Company's Condensed Consolidated Financial Statements.

Presentation of Unrecognized Tax Benefits

In July 2013, the FASB issued guidance on the presentation of certain unrecognized tax benefits on financial statements. The guidance requires, unless certain conditions exist, an unrecognized tax benefit to be presented as a reduction to a deferred tax asset in the financial statements for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. The guidance was effective for Aon in the first quarter of 2014. The adoption of this guidance did not have a material impact on the Company's Condensed Consolidated Financial Statements.

Foreign Currency

In March 2013, the FASB issued new accounting guidance clarifying the accounting for the release of cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. The guidance was effective for Aon in the first quarter of 2014. The adoption of this guidance did not have a material impact on the Company's Condensed Consolidated Financial Statements.
Cash and Cash Equivalents and Short-term Investments
Cash and Cash Equivalents and Short-term Investments
Cash and Cash Equivalents and Short-term Investments
 
Cash and cash equivalents include cash balances and all highly liquid investments with initial maturities of three months or less.  Short-term investments 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.
 
At September 30, 2014, Cash and cash equivalents and Short-term investments were $599 million compared to $1.0 billion at December 31, 2013. Of the total balance, $144 million and $214 million was restricted as to its use at September 30, 2014 and December 31, 2013, respectively. Included within that amount, at September 30, 2014, the Company is required to hold £40.5 million of operating funds in the U.K. by the Financial Conduct Authority, a U.K.-based regulator, which were included in Short-term investments.  At December 31, 2013, the Company was required to hold £77 million of operating funds in Short-term investments. These operating funds, when translated to U.S. dollars, were equal to $66 million and $126 million at September 30, 2014 and December 31, 2013, respectively. In addition, Cash and cash equivalents included additional restricted balances of $78 million and $88 million at September 30, 2014 and December 31, 2013, respectively. The restricted balances primarily relate to cash required to be held as collateral.
Other Financial Data
Other Financial Data
Other Financial Data
 
Condensed Consolidated Statements of Income Information

Other Income

Other income consists of the following (in millions):
 
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



Condensed Consolidated Statements of Financial Position Information

Allowance for Doubtful Accounts

An analysis of the allowance for doubtful accounts is as follows (in millions):
 
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



Other Current Assets

The components of Other current assets are as follows (in millions):
 
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



Other Non-Current Assets

The components of Other non-current assets are as follows (in millions):
 
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.

Other Current Liabilities

The components of Other current liabilities are as follows (in millions):
 
September 30, 2014
 
December 31, 2013
Deferred revenue
$
440

 
$
475

Taxes payable
96

 
136

Deferred tax liabilities
36

 
48

Other
281

 
247

 
$
853

 
$
906



Other Non-Current Liabilities

The components of Other non-current liabilities are as follows (in millions):
 
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

Acquisitions and Dispositions
Acquisitions and Dispositions
Acquisitions and Dispositions
 
Acquisitions
 
During the three months ended September 30, 2014, the Company completed the acquisition of four businesses in the Risk Solutions segment and one business in the HR Solutions segment. During the nine months ended September 30, 2014, the Company completed the acquisition of seven businesses in the Risk Solutions segment and two businesses in the HR Solutions segment. During the three months ended September 30, 2013, the Company completed the acquisition of one business in the Risk Solutions segment and one business in the HR Solutions segment. During the nine months ended September 30, 2013, the Company completed the acquisition of five businesses in the Risk Solutions segment and two businesses in the HR 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 (in millions):
 
 
Nine months ended September 30,
 
 
2014
 
2013
Consideration
 
$
446

 
$
26

Intangible assets:
 
 

 
 

Goodwill
 
$
261

 
$
26

Other intangible assets
 
310

 
8

     Total
 
$
571

 
$
34


 
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 in which they were acquired.

Dispositions
 
During the three months ended September 30, 2014, the Company completed the disposition of one business in the Risk Solutions segment. During the nine months ended September 30, 2014, the Company completed the disposition of two businesses in the Risk Solutions segment. A pretax gain of $25 million was recognized on these sales in the both the three and nine months ended September 30, 2014, which is included in Other income in the Condensed Consolidated Statements of Income. During the three months ended September 30, 2013, the Company completed the disposition of one business in the Risk Solutions segment. During the nine months ended September 30, 2013, the Company completed the disposition of five businesses in the Risk Solutions segment.  A pretax gain of $0.2 million gain was recognized on these dispositions in both the three and nine months ended September 30, 2013, which is included in Other income in the Condensed Statements of Income.
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets
 
The changes in the net carrying amount of goodwill by reportable segment for the nine months ended September 30, 2014 are as follows (in millions):
 
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


Other intangible assets by asset class are as follows (in millions):
 
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



Amortization expense from finite lived intangible assets was $90 million and $263 million for the three and nine months ended September 30, 2014, respectively. Amortization expense from finite lived intangibles assets was $98 million and $296 million for the three and nine months ended September 30, 2013, respectively.
 
The estimated future amortization for finite lived intangible assets as of September 30, 2014 is as follows (in millions):
 
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

Restructuring
Restructuring
Restructuring
 
Aon Hewitt Restructuring Plan

On October 14, 2010, the Company announced a global restructuring plan ("Aon Hewitt Plan") in connection with the acquisition of Hewitt Associates, Inc. The Aon Hewitt Plan was intended to streamline operations across the combined Aon Hewitt organization. The Company incurred all remaining costs for the Aon Hewitt Plan and the plan was closed in the fourth quarter of 2013. For the three and nine months ended September 30, 2014, no charges were taken under the Aon Hewitt Plan. For the three months ended September 30, 2013, $30 million of restructuring expenses were charged, of which $24 million and $6 million were in the Risk Solutions segment and HR Solutions segment, respectively. For the nine months ended September 30, 2013, $109 million of restructuring expenses were charged, of which $52 million and $57 million were in the Risk Solutions segment and HR Solutions segment, respectively.
  
As of December 31, 2013, the remaining liabilities for the Company's restructuring plans were $166 million. During the nine months ended September 30, 2014, the Company made cash payments of $70 million, resulting in remaining restructuring liabilities of $90 million as of September 30, 2014. The remaining $6 million reduction in the liability is due fluctuation in foreign exchange rates.
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):
 
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.
 
The Company's investments are as follows (in millions):
 
September 30,
2014
 
December 31,
2013
Equity method investments
$
122

 
$
113

Other investments
13

 
10

Fixed-maturity securities
8

 
9

 
$
143

 
$
132

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 and to retire other debt obligations.  At September 30, 2014, the Company had $50 million in commercial paper outstanding compared to no commercial paper outstanding at December 31, 2013. The weighted average commercial paper outstanding for the three and nine months ended September 30, 2014 was $360 million and $338 million, respectively. The weighted average interest rate of the commercial paper outstanding for the three and nine months ended September 30, 2014 was 0.31% and 0.34%, respectively.

During the quarter ended September 30, 2014, Aon plc's $600 million 3.50% Notes due September 2015 were classified as Short-term debt and current portion of long-term debt in the Condensed Consolidated Statements of Financial Position as the date of maturity is less than one year.

On August 12, 2014, Aon plc issued $350 million of 3.50% Notes due June 2024. The 3.50% Notes due 2024 constitute a further issuance of, and were consolidated to form a single series of debt securities with, the $250 million of 3.50% Notes due June 2024 issued by the Company on May 20, 2014. The 3.50% Notes due June 2024 are unconditionally guaranteed as to the payment of principal and interest by Aon Corporation. The Company used the proceeds of the issuance for general corporate purposes.

On June 30, 2014, Aon plc transferred €531 million to a trustee pursuant to an agreement related to the repayment of the €500 million of 6.25% Notes due July 2014 and accrued interest. The trustee subsequently disbursed €531 million to the noteholders on July 1, 2014 in payment of principal and accrued interest. The Company remained the primary obligor of the €500 million of 6.25% Notes due July 2014 until the funds were disbursed from the trustee to the bondholders on July 1, 2014. Therefore, the Company extinguished the liability related to this obligation as of July 1, 2014.

On May 20, 2014, Aon plc issued $250 million of 3.50% Notes due June 2024 and $550 million of 4.60% Notes due June 2044. The 3.50% Notes due June 2024 and 4.60% Notes due June 2044 are unconditionally guaranteed by Aon Corporation. The Company used the proceeds of the issuance to repay commercial paper borrowings and for general corporate purposes.

On May 7, 2014, Aon plc issued €500 million of 2.875% Notes due May 2026. The 2.875% Notes due May 2026 are fully and unconditionally guaranteed by Aon Corporation. The Company used the proceeds of the issuance for general corporate purposes, including the repayment at maturity of the Company's then outstanding €500 million of 6.25% Notes due July 2014.
Income Taxes
Income Taxes
Income Taxes
 
The effective tax rate on net income was 19.1% and 18.5% for the three and nine months ended September 30, 2014, respectively. The effective tax rate on net income was 25.1% and 25.9% for the three and nine months ended September 30, 2013, respectively. The effective tax rate in the third quarter and first nine months of 2014 was favorably impacted by a change in the geographical distribution of income, partially offset by the impact of certain discrete items.
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 three months ended September 30, 2014, the Company repurchased 5.8 million shares at an average price per share of $86.07 for a total cost of $500 million under the 2012 Share Repurchase Program. During the nine months ended September 30, 2014, the Company repurchased 20.4 million shares at an average price per share of $85.73 for a total cost of $1.8 billion under the 2012 Share Repurchase Program. In the third quarter of 2013, the Company repurchased 7.3 million shares at an average price per share of $68.33 for a total cost of $500 million under the 2012 Share Repurchase Program. During the nine months ended September 30, 2013, the Company repurchased 15.8 million shares at an average price per share of $64.79 for a total cost of $1.0 billion under the 2012 Share Repurchase Program. The remaining authorized amount for share repurchase under the 2012 Share Repurchase Program is $1.1 billion. Since the inception of the 2012 Share Repurchase Program, the Company repurchased a total of 56.7 million shares for an aggregate cost of $3.9 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.
 
Net income attributable to participating securities was $2 million and $7 million in the three and nine months ended September 30, 2014, respectively. Net income attributable to participating securities was $3 million and $8 million in the three and nine months ended September 30, 2013, respectively.

Weighted average shares outstanding are as follows (in millions):
 
Three months ended September 30,
 
Nine months ended September 30,
 
2014
 
2013
 
2014
 
2013
Shares for basic earnings per share (1) 
292.3

 
309.5

 
298.1

 
313.2

Common stock equivalents
3.8

 
3.4

 
3.5

 
3.5

Shares for diluted earnings per share
296.1

 
312.9

 
301.6

 
316.7

   ______________________________________________
(1) Includes 2.9 million and 3.8 million of participating securities for the three months ended September 30, 2014 and 2013, respectively, and 3.1 million and 4.0 million of participating securities for the nine months ended September 30, 2014 and 2013, respectively.
 
Certain ordinary share equivalents may not be included in the computation of diluted net income per share because their inclusion would have been antidilutive. There were no shares excluded from the calculation for the three and nine months ended September 30, 2014 and September 30, 2013.
 
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, 2013
$
1

 
$
(22
)
 
$
169

 
$
(2,522
)
 
$
(2,374
)
Other comprehensive (loss) income before reclassifications, net
(1
)
 
1

 
(226
)
 
2

 
(224
)
Amounts reclassified from accumulated other comprehensive loss:
 
 


 


 


 


Amounts reclassified from accumulated other comprehensive loss

 
17

 

 
94

 
111

Tax benefit

 
(5
)
 

 
(26
)
 
(31
)
Amounts reclassified from accumulated other comprehensive loss, net

 
12

 

 
68

 
80

Net current period other comprehensive (loss) income
(1
)
 
13

 
(226
)
 
70

 
(144
)
Balance at September 30, 2014
$

 
$
(9
)
 
$
(57
)
 
$
(2,452
)
 
$
(2,518
)
______________________________________________
(1) Reclassifications from this category included in Accumulated other comprehensive loss are recorded in Other income.
(2) Reclassifications from this category included in 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 material U.K., U.S., and other significant international pension plans, which are located in the Netherlands and Canada (in millions):
 
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




Based on current assumptions, in 2014, Aon plans to contribute $183 million, $173 million, and $29 million to its U.K., U.S. and other significant international pension plans, respectively. During the three months ended September 30, 2014, contributions of $24 million, $39 million, and $7 million were made to the Company's U.K., U.S. and other significant international pension plans, respectively. During the nine months ended September 30, 2014, contributions of $145 million, $112 million, and $23 million were made to the Company's U.K., U.S. and other significant international pension plans, respectively.

During the three months ended September 30, 2013, contributions of $54 million, $54 million, and $5 million were made to the Company's U.K., U.S. and other significant international pension plans, respectively. During the nine months ended September 30, 2013, contributions of $241 million, $122 million, and $49 million were made to the Company's U.K., U.S. and other significant international pension plans, respectively.
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 September 30,
 
Nine months ended September 30,
 
2014
 
2013
 
2014
 
2013
Restricted share units ("RSUs")
$
41

 
$
40

 
$
144

 
$
135

Performance share awards ("PSAs")
29

 
28

 
96

 
66

Share options

 

 

 
1

Employee share purchase plans
2

 
2

 
7

 
5

Total share-based compensation expense
$
72

 
$
70

 
$
247

 
$
207


 
Restricted Share Units
 
A summary of the status of the Company's RSUs is as follows (shares in thousands):
 
Nine months ended September 30,
 
2014
 
2013
 
Shares
 
Fair Value (1)
 
Shares
 
Fair Value (1)
Non-vested at beginning of period
9,759

 
$
51

 
10,432

 
$
44

Granted
2,675

 
84

 
3,598

 
62

Vested
(3,561
)
 
49

 
(3,618
)
 
44

Forfeited
(385
)
 
56

 
(308
)
 
47

Non-vested at end of period
8,488

 
63

 
10,104

 
51

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

Performance Share Awards

The vesting of PSAs is contingent upon meeting a level of earnings per share performance over a three-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 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 terms of the plan and level of achievement of the related performance target. Dividend equivalents are not paid on PSAs.

Information as of September 30, 2014 regarding the Company's target PSAs granted and shares that would be issued at current performance levels for PSAs granted during the nine months ended September 30, 2014 and the years ended December 31, 2013 and 2012, respectively, is as follows (shares in thousands, dollars in millions, except fair value):
 
As of September 30, 2014
 
As of December 31, 2013
 
As of December 31, 2012
Target PSAs granted
816

 
1,135

 
1,369

Fair value (1)
$
81

 
$
58

 
$
47

Number of shares that would be issued based on current performance levels
804

 
2,211

 
2,656

Unamortized expense, based on current performance levels
$
52

 
$
57

 
$
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 either the nine months ended September 30, 2014 or 2013.
 
A summary of the status of the Company's share options and related information is as follows (shares in thousands):
 
Nine months ended September 30,
 
2014
 
2013
 
Shares
 
Weighted- Average
Exercise Price
 
Shares
 
Weighted- Average
Exercise Price
Beginning outstanding
3,462

 
$
32

 
5,611

 
$
32

Granted

 

 

 

Exercised
(953
)
 
32

 
(1,694
)
 
32

Forfeited and expired
(6
)
 
37

 
(29
)
 
34

Outstanding at end of period
2,503

 
32

 
3,888

 
32

Exercisable at end of period
2,464

 
32

 
3,681

 
32


 
The weighted average remaining contractual life, in years, of outstanding options was 1.7 years and 2.2 years at September 30, 2014 and 2013, respectively.
 
The aggregate intrinsic value represents the total pretax intrinsic value, based on options with an exercise price less than the Company's closing share price of $87.67 as of September 30, 2014, which would have been received by the option holders had those option holders exercised their options as of that date.  At September 30, 2014, the aggregate intrinsic value of options outstanding was $138 million, of which $137 million was exercisable.
 
Other information related to the Company's share options is as follows (in millions):
 
Three months ended September 30,
 
Nine months ended September 30,
 
2014
 
2013
 
2014
 
2013
Aggregate intrinsic value of stock options exercised
$
6

 
$
14

 
$
51

 
$
53

Cash received from the exercise of stock options
3

 
14

 
30

 
55

Tax benefit realized from the exercise of stock options
2

 
3

 
14

 
10


 
Unamortized deferred compensation expense, which includes both options and awards, amounted to $395 million as of September 30, 2014, with a remaining weighted-average amortization period of approximately 2.1 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, and 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 at the balance sheet date is generally limited to the fair value of those contracts that are favorable to the Company.  The Company has reduced its credit risk by (1) using International Swaps and Derivatives Association master agreements, collateral and credit support arrangements, (2) entering into non-exchange-traded derivatives with highly-rated major financial institutions and (3) using exchange-traded instruments.  The Company monitors the creditworthiness of, and exposure to, its counterparties.  As of September 30, 2014, 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 September 30, 2014.
 
The notional and fair values of derivative instruments are as follows (in millions):
 
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).

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)
 
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

______________________________________________
(1) Included within Other current assets ($13 million and $18 million at September 30, 2014 and December 31, 2013, respectively) or Other non-current assets ($27 million and $32 million at September 30, 2014 and December 31, 2013, respectively).

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 (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


______________________________________________
(1) Included within Other current liabilities ($5 million and $23 million at September 30, 2014 and December 31, 2013, respectively) or Other non-current liabilities ($45 million and $40 million at September 30, 2014 and December 31, 2013, respectively).

The amounts of derivative gains (losses) recognized in the Condensed Consolidated Financial Statements for the three and nine months ended September 30, 2014 and 2013 are as follows (in millions):
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
)
 ______________________________________________
(1) Location of future reclassification from Accumulated Other Comprehensive Loss will be included within Interest expense.
(2) Location of future reclassification from Accumulated Other Comprehensive Loss will be included within Compensation and benefits ($2 million and $3 million loss for the three months ended September 30, 2014 and 2013, respectively, and $14 million gain and $17 million loss for the nine months ended September 30, 2014 and 2013, respectively), Other income ($2 million and $3 million gain for the three months ended September 30, 2014 and 2013, respectively, and $9 million and $11 million loss for the nine months ended September 30, 2014 and 2013, respectively), and Other general expenses ($3 million and $1 million loss for the three and nine months ended September 30, 2014, respectively).

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
)
 ______________________________________________
(1) Included within Interest expense
(2) Included within Compensation and benefits ($1 million and $5 million loss for the three months ended September 30, 2014 and 2013, respectively, and $4 million and $9 million loss for the nine months ended September 30, 2014 and 2013, respectively), Other income ($5 million gain and $5 million loss for the three months ended September 30, 2014 and 2013, respectively, and $6 million loss and $3 million gain for the nine months ended September 30, 2014 and 2013, respectively), Interest expenses ($3 million and $8 million loss for the three and nine months ended September 30, 2014, respectively), and Other general expenses ($3 million gain for the three months ended September 30, 2014, and $3 million gain and $1 million loss for the nine months ended September 30, 2014 and 2013, respectively).

The amount of gain (loss) recognized in the Condensed Consolidated Financial Statements is as follows (in millions):
 
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

  ______________________________________________
(1) Included in Interest expense.
(2) Relates to fixed rate debt.
 
The Company estimates that approximately $3 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 nine months ended September 30, 2014 and 2013 was not material.
 
During the three and nine months ended September 30, 2014, the Company recorded a loss of $11 million and $13 million, respectively, in Other income, for foreign exchange derivatives not designated or qualifying as hedges. During the three and nine months ended September 30, 2013, the Company recorded a gain of $3 million and a loss of $15 million, respectively, in Other income, for foreign exchange derivatives not designated or qualifying as hedges.
Fair Value Measurements and Financial Instruments
Fair Value Measurements and Financial Instruments
Fair Value Measurements and Financial Instruments
 
Accounting standards establish a three tier fair value hierarchy that prioritizes the inputs used in measuring fair values as follows:
 
Level 1 — observable inputs such as quoted prices for identical assets in active markets;
Level 2 — inputs other than quoted prices for identical assets in active markets, that are observable either directly or indirectly; and
Level 3 — unobservable inputs in which there is little or no market data which requires the use of valuation techniques and the development of assumptions.

The following methods and assumptions are used to estimate the fair values of the Company's financial instruments:
 
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 of securities in the portfolio and agrees the closing stock prices to the price quoted on 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 U.K. 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 real estate investment trusts ("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 September 30, 2014 and December 31, 2013 (in millions):
 
 
 
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

 

  ______________________________________________
(1) Includes $1,647 million of money market funds and $2 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, 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

 

  ______________________________________________
(1)  Includes $2,054 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 nine months ended September 30, 2014 and 2013, respectively. There were no realized or unrealized gains or losses recognized in the Condensed Consolidated Statements of Income during the three and nine months ended September 30, 2014, related to assets and liabilities measured at fair value using unobservable inputs. There were $6 million of realized gains and no unrealized gains or losses recognized in the Condensed Consolidated Statements of Income during the three and nine months ended September 30, 2013, related to assets and liabilities measured at fair value using unobservable inputs.
 
The fair value of Long-term debt is classified as Level 2 of the fair value hierarchy. The following table discloses the Company's financial instruments where the carrying amounts and fair values differ (in millions):
 
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

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 claims. Accruals for these exposures, and related insurance receivables, when applicable, are included in the Condensed Consolidated Statements of Financial Position and have been recognized in Other general expenses in the Condensed Consolidated Statements of Income to the extent that losses are deemed probable and are reasonably estimable. These amounts are adjusted from time to time as developments warrant. Matters that are not probable and estimable are not accrued for in the financial statements. Included in the matters described below are matters in which (1) loss is probable (2) loss is reasonably possible but not probable or (3) there exists the reasonable possibility of loss greater than the accrued amount. The reasonably possible range of loss for the matters described below, in excess of amounts that are deemed probable and estimable and therefore already accrued, is estimated to be between $0 and $0.7 billion, exclusive of any insurance coverage. These estimates are based on currently available information. As available information changes, the matters for which Aon is able to estimate will change, and the estimates themselves will change. In addition, many estimates involve significant judgment and uncertainty. For example, at the time of making an estimate, Aon may only have limited information about the facts underlying the claim, and predictions and assumptions about future court rulings and outcomes may prove to be inaccurate.

Although management at present believes that the ultimate outcome of all matters described below, individually or in the aggregate, will not have a material adverse effect on the consolidated financial position of Aon, legal proceedings are subject to inherent uncertainties and unfavorable rulings or other events. Unfavorable resolutions could include substantial monetary or punitive damages imposed on Aon or its subsidiaries. If unfavorable outcomes of these matters were to occur, future results of operations or cash flows for any particular quarterly or annual period could be materially adversely affected.
 
A predecessor of a retail insurance brokerage subsidiary of Aon provided insurance brokerage services to Northrop Grumman Corporation ("Northrop"). This subsidiary placed Northrop's property insurance program for the period covering 2005. Northrop suffered a substantial loss in August 2005 when Hurricane Katrina damaged Northrop's shipbuilding facilities in the Gulf States. Northrop's excess insurance carrier, Factory Mutual Insurance Company ("Factory Mutual"), denied coverage for storm surge damage pursuant to a flood exclusion in the excess policy. Northrop sued Factory Mutual in the United States District Court for the Central District of California. The district court granted summary judgment in Northrop's favor in August 2007. In August 2008, the United State Court of Appeals for the Ninth Circuit reversed the district court's ruling and held that the flood exclusion applied to storm surge damage. Northrop thereafter sought to join Aon's subsidiary as a defendant in the action against Factory Mutual, asserting that if Northrop's policy with Factory Mutual does not cover the Northrop storm surge losses, then the Aon subsidiary will be responsible for Northrop's losses. In August 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 the Aon subsidiary as a defendant in the federal lawsuit. On January 27, 2011, Northrop filed suit against the Aon subsidiary in the Superior Court of the State of California, County of Los Angeles, asserting claims for negligence, breach of contract and negligent misrepresentation. Northrop later settled its claims with Factory Mutual. In January 2014, Northrop filed an amended complaint, adding additional claims against the Aon subsidiary for intentional misrepresentation and concealment. Northrop seeks compensatory damages of approximately $340 million, which includes prejudgment interest and attorneys' fees, and punitive damages that are a multiple of the compensatory damages sought. Aon asserts several defenses, including, but not limited to, that it committed no error or omission in placing the Factory Mutual excess policy for Northrop and that Northrop did not suffer any damages as a result of Aon's conduct.

Another retail insurance brokerage subsidiary of Aon was sued on September 14, 2010 in the Chancery Court for Davidson County, Tennessee Twentieth Judicial District, at Nashville 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.
 
A pensions consulting and administration subsidiary of Hewitt before its acquisition by Aon provided advisory services to the Trustees of the Philips UK pension fund and the relevant employer of fund beneficiaries. On January 2, 2014, Philips Pension Trustees Limited and Philips Electronics UK Limited (together, "Philips") sued Aon in the High Court, Chancery Division, London alleging negligence and breach of duty. The proceedings assert 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. Philips is seeking approximately £189 million ($307 million at September 30, 2014 exchange rates), plus interest and costs. Aon believes that it has meritorious defenses and intends to vigorously defend itself against these allegations.

On December 21, 2012, Mazeikiu Nafta ("MN"), which operates an oil refinery in Lithuania, sued an insurance brokerage subsidiary of Aon in the High Court of Justice in England & Wales, Queen's Bench Division, Commercial Court. 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. The claim was for $125 million, which was the shortfall alleged by MN to have been caused by Aon's failure to obtain appropriate business interruption coverage. On October 27, 2014, following 11 days of trial, the case was settled for $5 million with no admission of liability on the part of Aon.

On June 1, 2007, the International Road Transport Union ("IRU") sued Aon in the Geneva Tribunal of First Instance in Switzerland. IRU alleges, among other things, that, between 1995 and 2004, a predecessor of Aon and, later, an Aon subsidiary (1) accepted commissions for certain insurance placements that violated a fee agreement entered between the parties and (2) negligently failed to ask certain insurance carriers to contribute to the IRU's risk management costs.  IRU seeks damages of approximately CHF 46 million ($48 million at September 30, 2014 exchange rates) and $3 million, plus legal fees and interest of approximately $30 million. Aon believes that it has meritorious defenses and intends to vigorously defend itself against these claims. 

On December 27, 2012, AXA Versicherung Aktiengesellschaft ("AXA") started arbitral proceedings in Hamburg, Germany against an insurance and reinsurance brokerage subsidiary of Aon in Germany.  Predecessors of AXA granted predecessors of the Aon subsidiary a mandate to underwrite non-proportional reinsurance business from 1975 through 1999. AXA alleges, among other things, that the Aon-related entities intentionally exceeded their mandate and that, if AXA had known of this intention, it would not have granted a mandate.  AXA seeks damages of approximately €183 million ($232 million at September 30, 2014 exchange rates). Aon believes that it has meritorious defenses and intends to vigorously defend itself against these claims. 

A pensions consulting and administration subsidiary of Aon provided advisory services to the Trustees of the Gleeds pension fund in the United Kingdom and, on occasion, to the relevant employer of the fund.  In April 2014, the High Court, Chancery Division, London found that certain governing documents of the fund that sought to alter the fund's benefit structure and that had been drafted by Aon were procedurally defective and therefore invalid.  No lawsuit naming Aon as a party has been filed, although a tolling agreement has been entered.  The High Court decision says that the additional liabilities in the pension fund resulting from the alleged defect in governing documents amount to approximately £45 million ($73 million at September 30, 2014 exchange rates). Aon believes that it has meritorious defenses and intends to vigorously defend itself against this potential claim.

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.
 
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 are included in the Company's Condensed Consolidated Financial Statements, and are recorded at fair value.

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

Letters of Credit
 
The Company had total letters of credit ("LOCs") outstanding for approximately $97 million at September 30, 2014, compared to $71 million at December 31, 2013. 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, and are recorded at fair value.
 
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 $16 million at September 30, 2014 compared to $34 million at December 31, 2013. During the three and nine months ended September 30, 2014, the Company funded $4 million and $18 million of these commitments, respectively.
 
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 $83 million at September 30, 2014 compared to $98 million at December 31, 2013.
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 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



Commissions, fees and other revenues by product are as follows (in millions):
 
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


 
Fiduciary investment income by segment is as follows (in millions):
 
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


 
A reconciliation of segment operating income before tax to income before income taxes is as follows (in millions):
 
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


 
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 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 16, 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% directly owned subsidiary of Aon plc. The debt securities that are subject to Rule 3-10 of Regulation S-X are the 3.50% Notes due September 2015, the 3.125% Notes due May 2016, the 5.00% Notes due September 2020, the 8.205% Notes due January 2027 and the 6.25% Notes due September 2040. All guarantees of Aon plc are full and unconditional. There are no other 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% Notes due January 2027. 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, the 4.00% Notes due November 2023, the 2.875% Notes due May 2026, the 3.50% Notes due June 2024, and the 4.60% Notes due June 2044. 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, the 4.45% Notes due 2043, the 4.00% Notes due 2023, the 2.875% Notes due 2026, the 3.50% Notes due 2024 or the 4.60% Notes due 2044.
 
The following tables set forth condensed consolidating statements of income for the three and nine months ended September 30, 2014 and 2013, condensed consolidating statements of comprehensive income for the three and nine months ended September 30, 2014 and 2013, condensed consolidating statements of financial position as of September 30, 2014 and December 31, 2013, and condensed consolidating statements of cash flows for the nine months ended September 30, 2014 and 2013 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 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



Condensed Consolidating Statement of Income 
 
 
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


Condensed Consolidating Statement of Income 
 
 
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

Condensed Consolidating Statement of Income 
 
 
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












Condensed Consolidating Statement of Comprehensive Income
 
 
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

 

Condensed Consolidating Statement of Comprehensive Income
 
 
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





Condensed Consolidating Statement of Comprehensive Income
 
 
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

 

Condensed Consolidating Statement of Comprehensive Income
 
 
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



Condensed Consolidating Statement of Financial Position 
 
 
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


Condensed Consolidating Statement of Financial Position
 
 
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


Condensed Consolidating Statement of Cash Flows
 
 
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


Condensed Consolidating Statement of Cash Flows
 
 
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

Other Financial Data (Tables)
Other income consists of the following (in millions):
 
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

An analysis of the allowance for doubtful accounts is as follows (in millions):
 
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

The components of Other current assets are as follows (in millions):
 
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


The components of Other non-current assets are as follows (in millions):
 
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.

The components of Other current liabilities are as follows (in millions):
 
September 30, 2014
 
December 31, 2013
Deferred revenue
$
440

 
$
475

Taxes payable
96

 
136

Deferred tax liabilities
36

 
48

Other
281

 
247

 
$
853

 
$
906

The components of Other non-current liabilities are as follows (in millions):
 
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

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 (in millions):
 
 
Nine months ended September 30,
 
 
2014
 
2013
Consideration
 
$
446

 
$
26

Intangible assets:
 
 

 
 

Goodwill
 
$
261

 
$
26

Other intangible assets
 
310

 
8

     Total
 
$
571

 
$
34

Goodwill and Other Intangible Assets (Tables)
The changes in the net carrying amount of goodwill by reportable segment for the nine months ended September 30, 2014 are as follows (in millions):
 
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


Other intangible assets by asset class are as follows (in millions):
 
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

The estimated future amortization for finite lived intangible assets as of September 30, 2014 is as follows (in millions):
 
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

Investments (Tables)
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):
 
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.
The Company's investments are as follows (in millions):
 
September 30,
2014
 
December 31,
2013
Equity method investments
$
122

 
$
113

Other investments
13

 
10

Fixed-maturity securities
8

 
9

 
$
143

 
$
132

Shareholders' Equity (Tables)
Weighted average shares outstanding are as follows (in millions):
 
Three months ended September 30,
 
Nine months ended September 30,
 
2014
 
2013
 
2014
 
2013
Shares for basic earnings per share (1) 
292.3

 
309.5

 
298.1

 
313.2

Common stock equivalents
3.8

 
3.4

 
3.5

 
3.5

Shares for diluted earnings per share
296.1

 
312.9

 
301.6

 
316.7

   ______________________________________________
(1) Includes 2.9 million and 3.8 million of participating securities for the three months ended September 30, 2014 and 2013, respectively, and 3.1 million and 4.0 million of participating securities for the nine months ended September 30, 2014 and 2013, respectively.
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, 2013
$
1

 
$
(22
)
 
$
169

 
$
(2,522
)
 
$
(2,374
)
Other comprehensive (loss) income before reclassifications, net
(1
)
 
1

 
(226
)
 
2

 
(224
)
Amounts reclassified from accumulated other comprehensive loss:
 
 


 


 


 


Amounts reclassified from accumulated other comprehensive loss

 
17

 

 
94

 
111

Tax benefit

 
(5
)
 

 
(26
)
 
(31
)
Amounts reclassified from accumulated other comprehensive loss, net

 
12

 

 
68

 
80

Net current period other comprehensive (loss) income
(1
)
 
13

 
(226
)
 
70

 
(144
)
Balance at September 30, 2014
$

 
$
(9
)
 
$
(57
)
 
$
(2,452
)
 
$
(2,518
)
______________________________________________
(1) Reclassifications from this category included in Accumulated other comprehensive loss are recorded in Other income.
(2) Reclassifications from this category included in 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 material U.K., U.S., and other significant international pension plans, which are located in the Netherlands and Canada (in millions):
 
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

Share-Based Compensation Plans (Tables)
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 September 30,
 
Nine months ended September 30,
 
2014
 
2013
 
2014
 
2013
Restricted share units ("RSUs")
$
41

 
$
40

 
$
144

 
$
135

Performance share awards ("PSAs")
29

 
28

 
96

 
66

Share options

 

 

 
1

Employee share purchase plans
2

 
2

 
7

 
5

Total share-based compensation expense
$
72

 
$
70

 
$
247

 
$
207

A summary of the status of the Company's RSUs is as follows (shares in thousands):
 
Nine months ended September 30,
 
2014
 
2013
 
Shares
 
Fair Value (1)
 
Shares
 
Fair Value (1)
Non-vested at beginning of period
9,759

 
$
51

 
10,432

 
$
44

Granted
2,675

 
84

 
3,598

 
62

Vested
(3,561
)
 
49

 
(3,618
)
 
44

Forfeited
(385
)
 
56

 
(308
)
 
47

Non-vested at end of period
8,488

 
63

 
10,104

 
51

 ______________________________________________
(1)
Represents per share weighted average fair value of award at date of grant.
Information as of September 30, 2014 regarding the Company's target PSAs granted and shares that would be issued at current performance levels for PSAs granted during the nine months ended September 30, 2014 and the years ended December 31, 2013 and 2012, respectively, is as follows (shares in thousands, dollars in millions, except fair value):
 
As of September 30, 2014
 
As of December 31, 2013
 
As of December 31, 2012
Target PSAs granted
816

 
1,135

 
1,369

Fair value (1)
$
81

 
$
58

 
$
47

Number of shares that would be issued based on current performance levels
804

 
2,211

 
2,656

Unamortized expense, based on current performance levels
$
52

 
$
57

 
$
11

 ______________________________________________
(1)
Represents per share weighted average fair value of award at date of grant.
A summary of the status of the Company's share options and related information is as follows (shares in thousands):
 
Nine months ended September 30,
 
2014
 
2013
 
Shares
 
Weighted- Average
Exercise Price
 
Shares
 
Weighted- Average
Exercise Price
Beginning outstanding
3,462

 
$
32

 
5,611

 
$
32

Granted

 

 

 

Exercised
(953
)
 
32

 
(1,694
)
 
32

Forfeited and expired
(6
)
 
37

 
(29
)
 
34

Outstanding at end of period
2,503

 
32

 
3,888

 
32

Exercisable at end of period
2,464

 
32

 
3,681

 
32

Other information related to the Company's share options is as follows (in millions):
 
Three months ended September 30,
 
Nine months ended September 30,
 
2014
 
2013
 
2014
 
2013
Aggregate intrinsic value of stock options exercised
$
6

 
$
14

 
$
51

 
$
53

Cash received from the exercise of stock options
3

 
14

 
30

 
55

Tax benefit realized from the exercise of stock options
2

 
3

 
14

 
10

Derivatives and Hedging (Tables)
The notional and fair values of derivative instruments are as follows (in millions):
 
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).

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)
 
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

______________________________________________
(1) Included within Other current assets ($13 million and $18 million at September 30, 2014 and December 31, 2013, respectively) or Other non-current assets ($27 million and $32 million at September 30, 2014 and December 31, 2013, respectively).

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 (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


______________________________________________
(1) Included within Other current liabilities ($5 million and $23 million at September 30, 2014 and December 31, 2013, respectively) or Other non-current liabilities ($45 million and $40 million at September 30, 2014 and December 31, 2013, respectively)
The amounts of derivative gains (losses) recognized in the Condensed Consolidated Financial Statements for the three and nine months ended September 30, 2014 and 2013 are as follows (in millions):
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
)
 ______________________________________________
(1) Location of future reclassification from Accumulated Other Comprehensive Loss will be included within Interest expense.
(2) Location of future reclassification from Accumulated Other Comprehensive Loss will be included within Compensation and benefits ($2 million and $3 million loss for the three months ended September 30, 2014 and 2013, respectively, and $14 million gain and $17 million loss for the nine months ended September 30, 2014 and 2013, respectively), Other income ($2 million and $3 million gain for the three months ended September 30, 2014 and 2013, respectively, and $9 million and $11 million loss for the nine months ended September 30, 2014 and 2013, respectively), and Other general expenses ($3 million and $1 million loss for the three and nine months ended September 30, 2014, respectively).

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
)
 ______________________________________________
(1) Included within Interest expense
(2) Included within Compensation and benefits ($1 million and $5 million loss for the three months ended September 30, 2014 and 2013, respectively, and $4 million and $9 million loss for the nine months ended September 30, 2014 and 2013, respectively), Other income ($5 million gain and $5 million loss for the three months ended September 30, 2014 and 2013, respectively, and $6 million loss and $3 million gain for the nine months ended September 30, 2014 and 2013, respectively), Interest expenses ($3 million and $8 million loss for the three and nine months ended September 30, 2014, respectively), and Other general expenses ($3 million gain for the three months ended September 30, 2014, and $3 million gain and $1 million loss for the nine months ended September 30, 2014 and 2013, respectively).

The amount of gain (loss) recognized in the Condensed Consolidated Financial Statements is as follows (in millions):
 
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

  ______________________________________________
(1) Included in Interest expense.
(2) Relates to fixed rate debt.
Fair Value Measurements and Financial Instruments (Tables)
The following tables present the categorization of the Company's assets and liabilities that are measured at fair value on a recurring basis at September 30, 2014 and December 31, 2013 (in millions):
 
 
 
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

 

  ______________________________________________
(1) Includes $1,647 million of money market funds and $2 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, 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

 

  ______________________________________________
(1)  Includes $2,054 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.
The fair value of Long-term debt is classified as Level 2 of the fair value hierarchy. The following table discloses the Company's financial instruments where the carrying amounts and fair values differ (in millions):
 
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

Segment Information (Tables)
Aon's total revenue is as follows (in millions):
 
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

Commissions, fees and other revenues by product are as follows (in millions):
 
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

Fiduciary investment income by segment is as follows (in millions):
 
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

A reconciliation of segment operating income before tax to income before income taxes is as follows (in millions):
 
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

Guarantee of Registered Securities (Tables)
Condensed Consolidating Statement of Income
 
 
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



Condensed Consolidating Statement of Income 
 
 
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


Condensed Consolidating Statement of Income 
 
 
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

Condensed Consolidating Statement of Income 
 
 
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

Condensed Consolidating Statement of Comprehensive Income
 
 
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

 

Condensed Consolidating Statement of Comprehensive Income
 
 
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





Condensed Consolidating Statement of Comprehensive Income
 
 
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

 

Condensed Consolidating Statement of Comprehensive Income
 
 
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

Condensed Consolidating Statement of Financial Position 
 
 
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


Condensed Consolidating Statement of Financial Position
 
 
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


Condensed Consolidating Statement of Cash Flows
 
 
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


Condensed Consolidating Statement of Cash Flows
 
 
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

Cash and Cash Equivalents (Details)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2014
USD ($)
Sep. 30, 2014
GBP (£)
Dec. 31, 2013
USD ($)
Dec. 31, 2013
GBP (£)
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 
 
 
Cash and Cash Equivalents and Short-Term Investments
$ 599 
 
$ 1,000 
 
Restricted Cash and Investments, Current
144 
 
214 
 
Operating funds in U.K.
66.0 
40.5 
126.0 
77.0 
Cash and cash equivalents, restricted
$ 78 
 
$ 88 
 
Schedule of Other Income (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Other (Expense) Income
 
 
 
 
Equity earnings
$ 4 
$ 6 
$ 10 
$ 12 
Gain on investments
37 
36 
Foreign currency remeasurement gain (loss)
(4)
11 
15 
Derivative (loss) gain
(6)
(19)
(8)
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal
25 
25 
Other
(1)
(1)
Other Income
$ 35 
$ 39 
$ 34 
$ 54 
Other Financial Data Schedule of Allowance for Doubtful Accounts (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Allowance for Doubtful Accounts Receivable [Roll Forward]
 
 
 
 
Balance at beginning of period
$ 88 
$ 114 
$ 90 
$ 118 
Provision charged to operations
(5)
Accounts written off, net of recoveries
(14)
(8)
(23)
(26)
Effect of exchange rate changes and other
(2)
Balance at end of period
$ 79 
$ 99 
$ 79 
$ 99 
Other Financial Data Schedule of Other Current Assets (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2014
Dec. 31, 2013
Other Financial Data [Abstract]
 
 
Taxes receivable
$ 258 
$ 111 
Prepaid expenses
238 
229 
Deferred project costs
102 
98 
Deferred tax assets
81 
93 
Other
32 
32 
Other Assets, Current
$ 711 
$ 563 
Other Financial Data Schedule of Non-current Assets (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2014
Dec. 31, 2013
Other Financial Data [Abstract]
 
 
Prepaid pension
$ 750 1
$ 567 1
Deferred project costs
256 
273 
Deferred tax assets
176 
193 
Taxes receivable
98 
108 
Other
251 
282 
Other Assets, Noncurrent
$ 1,531 
$ 1,423 
Other Financial Data Schedule of Other Current Liabilities (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2014
Dec. 31, 2013
Other Financial Data [Abstract]
 
 
Deferred revenue
$ 440 
$ 475 
Taxes payable
96 
136 
Deferred tax liabilities
36 
48 
Other
281 
247 
Other Liabilities, Current
$ 853 
$ 906 
Other Financial Data Schedule of Other Non-current Liabilities (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2014
Dec. 31, 2013
Other Financial Data [Abstract]
 
 
Deferred tax liabilities
$ 535 
$ 420 
Taxes payable
202 
184 
Leases
191 
204 
Deferred revenue
170 
134 
Compensation and benefits
56 
105 
Other
268 
305 
Other Liabilities, Noncurrent
$ 1,422 
$ 1,352 
Acquisitions and Dispositions - Acquisitions (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
business
Sep. 30, 2013
business
Sep. 30, 2014
business
Sep. 30, 2013
business
Dec. 31, 2013
Intangible assets:
 
 
 
 
 
Goodwill
$ 9,026 
 
$ 9,026 
 
$ 8,997 
Business Acquisition 1 [Member]
 
 
 
 
 
Business Acquisition
 
 
 
 
 
Consideration
446 
26 
446 
26 
 
Intangible assets:
 
 
 
 
 
Goodwill
261 
26 
261 
26 
 
Other intangible assets
310 
310 
 
Total
571 
34 
571 
34 
 
Risk Solutions [Member]
 
 
 
 
 
Business Acquisition
 
 
 
 
 
Number of business acquired under business combination
 
Intangible assets:
 
 
 
 
 
Goodwill
6,057 
 
6,057 
 
6,020 
HR Solutions [Member]
 
 
 
 
 
Business Acquisition
 
 
 
 
 
Number of business acquired under business combination
 
Intangible assets:
 
 
 
 
 
Goodwill
$ 2,969 
 
$ 2,969 
 
$ 2,977 
Acquisitions and Dispositions - Dispositions (Details) (Risk Solutions [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
business
Sep. 30, 2013
business
Sep. 30, 2014
business
Sep. 30, 2013
business
Risk Solutions [Member]
 
 
 
 
Dispositions
 
 
 
 
Number of dispositions
Gain (loss) recognized on sale
$ 25.0 
$ 0.2 
$ 25.0 
$ 0.2 
Goodwill and Other Intangible Assets (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2014
Changes in the net carrying amount of goodwill by operating segment (in millions)
 
Beginning balance
$ 8,997 
Goodwill related to current year acquisitions
261 
Goodwill related to disposals
(14)
Goodwill related to prior year acquisitions
(1)
Transfer
Foreign currency translation
(217)
Ending balance
9,026 
Risk Solutions [Member]
 
Changes in the net carrying amount of goodwill by operating segment (in millions)
 
Beginning balance
6,020 
Goodwill related to current year acquisitions
256 
Goodwill related to disposals
(14)
Goodwill related to prior year acquisitions
(1)
Transfer
(2)
Foreign currency translation
(202)
Ending balance
6,057 
HR Solutions [Member]
 
Changes in the net carrying amount of goodwill by operating segment (in millions)
 
Beginning balance
2,977 
Goodwill related to current year acquisitions
Goodwill related to disposals
Goodwill related to prior year acquisitions
Transfer
Foreign currency translation
(15)
Ending balance
$ 2,969 
Goodwill and Other Intangible Assets (Details 2) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Dec. 31, 2013
Intangible assets with indefinite lives
 
 
 
 
 
Tradenames
$ 1,019 
 
$ 1,019 
 
$ 1,019 
Intangible assets with finite lives
 
 
 
 
 
Intangible assets with finite lives, Gross Carrying Amount
4,579 
 
4,579 
 
4,323 
Intangible assets with finite lives, Accumulated Amortization
1,967 
 
1,967 
 
1,745 
Intangible assets, Net Carrying Amount
2,612 
 
2,612 
 
2,578 
Amortization expense on intangible assets
90 
98 
263 
296 
 
Estimated amortization for intangible assets
 
 
 
 
 
Remainder of 2014
89 
 
89 
 
 
2015
320 
 
320 
 
 
2016
276 
 
276 
 
 
2017
231 
 
231 
 
 
2018
172 
 
172 
 
 
Thereafter
505 
 
505 
 
 
Estimated future amortization for intangible assets
1,593 
 
1,593 
 
 
Risk Solutions [Member]
 
 
 
 
 
Estimated amortization for intangible assets
 
 
 
 
 
Remainder of 2014
29 
 
29 
 
 
2015
109 
 
109 
 
 
2016
100 
 
100 
 
 
2017
91 
 
91 
 
 
2018
79 
 
79 
 
 
Thereafter
253 
 
253 
 
 
Estimated future amortization for intangible assets
661 
 
661 
 
 
HR Solutions [Member]
 
 
 
 
 
Estimated amortization for intangible assets
 
 
 
 
 
Remainder of 2014
60 
 
60 
 
 
2015
211 
 
211 
 
 
2016
176 
 
176 
 
 
2017
140 
 
140 
 
 
2018
93 
 
93 
 
 
Thereafter
252 
 
252 
 
 
Estimated future amortization for intangible assets
932 
 
932 
 
 
Customer related and contract based [Member]
 
 
 
 
 
Intangible assets with finite lives
 
 
 
 
 
Intangible assets with finite lives, Gross Carrying Amount
2,972 
 
2,972 
 
2,720 
Intangible assets with finite lives, Accumulated Amortization
1,520 
 
1,520 
 
1,310 
Intangible assets, Net Carrying Amount
1,452 
 
1,452 
 
1,410 
Marketing, technology and other [Member]
 
 
 
 
 
Intangible assets with finite lives
 
 
 
 
 
Intangible assets with finite lives, Gross Carrying Amount
588 
 
588 
 
584 
Intangible assets with finite lives, Accumulated Amortization
447 
 
447 
 
435 
Intangible assets, Net Carrying Amount
$ 141 
 
$ 141 
 
$ 149 
Restructuring (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended
Sep. 30, 2014
Dec. 31, 2013
Sep. 30, 2013
Aon Hewitt Restructuring Plan [Member]
Sep. 30, 2013
Aon Hewitt Restructuring Plan [Member]
Sep. 30, 2013
Aon Hewitt Restructuring Plan [Member]
HR Solutions [Member]
Sep. 30, 2013
Aon Hewitt Restructuring Plan [Member]
HR Solutions [Member]
Sep. 30, 2013
Aon Hewitt Restructuring Plan [Member]
Risk Solutions [Member]
Sep. 30, 2013
Aon Hewitt Restructuring Plan [Member]
Risk Solutions [Member]
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
Restructuring charges
 
 
$ 30 
$ 109 
$ 6 
$ 57 
$ 24 
$ 52 
Restructuring reserve
90 
166 
 
 
 
 
 
 
Cash payments
70 
 
 
 
 
 
 
 
Restructuring reserve reduction due to foreign currency translation
$ 6 
 
 
 
 
 
 
 
Investments (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2014
Dec. 31, 2013
Sep. 30, 2013
Dec. 31, 2012
Interest-bearing Assets
 
 
 
 
Cash and cash equivalents
$ 382 
$ 477 
$ 369 
$ 291 
Short-term investments
217 
523 
 
 
Fiduciary assets
3,877 1
3,778 1
 
 
Investments
143 
132 
 
 
Total interest-bearing assets
4,619 
4,910 
 
 
Investments:
 
 
 
 
Equity method investments
122 
113 
 
 
Other investments
13 
10 
 
 
Fixed-maturity securities
 
 
Investments
$ 143 
$ 132 
 
 
Debt (Details)
0 Months Ended 3 Months Ended 9 Months Ended 0 Months Ended 0 Months Ended
Jun. 30, 2014
EUR (€)
Sep. 30, 2014
Commercial paper [Member]
USD ($)
Sep. 30, 2014
Commercial paper [Member]
USD ($)
Dec. 31, 2013
Commercial paper [Member]
USD ($)
Sep. 30, 2014
3.50% debt securities due September 2015 [Member]
Notes Payable, Other Payables [Member]
Aug. 12, 2014
3.50% notes due 2024 [Member]
Notes Payable, Other Payables [Member]
USD ($)
May 20, 2014
3.50% notes due 2024 [Member]
Notes Payable, Other Payables [Member]
USD ($)
Jul. 1, 2014
Debt Securities 6.25 Percent, Due 2014 [Member]
EUR (€)
Jul. 1, 2014
Debt Securities 6.25 Percent, Due 2014 [Member]
Notes Payable, Other Payables [Member]
Jun. 30, 2014
Debt Securities 6.25 Percent, Due 2014 [Member]
Notes Payable, Other Payables [Member]
EUR (€)
May 20, 2014
4.60% notes due 2044 [Member]
Notes Payable, Other Payables [Member]
USD ($)
May 7, 2014
2.875% notes due 2026 [Member]
Notes Payable, Other Payables [Member]
EUR (€)
Jul. 1, 2014
Debt Securities 6.25 Percent, Due 2014 [Member]
EUR (€)
Sep. 30, 2014
Short-term debt and current portion of long-term debt [Member]
3.50% debt securities due September 2015 [Member]
USD ($)
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total debt
 
$ 50,000,000 
$ 50,000,000 
$ 0 
 
 
 
 
 
 
 
 
 
 
Weighted average commercial paper outstanding
 
360,000,000 
338,000,000 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average interest rates (as a percent)
 
0.31% 
0.34% 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Face Amount
 
 
 
 
 
350,000,000 
250,000,000 
 
 
500,000,000 
550,000,000 
500,000,000 
 
600,000,000 
Debt interest rate percentage
 
 
 
 
3.50% 
3.50% 
3.50% 
 
6.25% 
6.25% 
4.60% 
2.875% 
 
 
Repayments of Debt
 
 
 
 
 
 
 
531,000,000 
 
 
 
 
 
 
Payments for Deposits Applied to Debt Retirements
531,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Repayment of debt
 
 
 
 
 
 
 
 
 
 
 
 
€ 500,000,000 
 
Income Taxes Income Taxes (Details)
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Income Tax Disclosure [Abstract]
 
 
 
 
Effective income tax rate
19.10% 
25.10% 
18.50% 
25.90% 
Shareholders' Equity (Details) (USD $)
1 Months Ended 3 Months Ended 9 Months Ended 30 Months Ended
Apr. 30, 2012
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Common Stock Programs
 
 
 
 
 
 
Total cost of shares purchased
 
 
 
$ 1,750,000,000 
 
 
Weighted average shares outstanding
 
 
 
 
 
 
Shares for basic earnings per share (in shares)
 
292,300,000 1
309,500,000 1
298,100,000 1
313,200,000 1
 
Common stock equivalents (in shares)
 
3,800,000 
3,400,000 
3,500,000 
3,500,000 
 
Shares for diluted earnings per share (in shares)
 
296,100,000 
312,900,000 
301,600,000 
316,700,000 
 
Number of participating securities (in shares)
 
2,900,000 
3,800,000 
3,100,000 
4,000,000 
 
Number of shares excluded from the calculation of diluted earnings per share
 
 
2012 - Share Repurchase Program [Member]
 
 
 
 
 
 
Common Stock Programs
 
 
 
 
 
 
Share repurchase authorization limit
5,000,000,000 
 
 
 
 
 
Shares purchased (in shares)
 
5,800,000 
7,300,000 
20,400,000 
15,800,000 
56,700,000 
Average price per share of stock repurchased
 
$ 86.07 
$ 68.33 
$ 85.73 
$ 64.79 
 
Total cost of shares purchased
 
500,000,000 
500,000,000 
1,800,000,000 
1,000,000,000 
3,900,000,000 
Share repurchase, remaining authorization limit
 
 
 
$ 1,100,000,000 
 
 
Shareholders' Equity Schedule of Net Income from Participating Securities (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Equity [Abstract]
 
 
 
 
Net income from participating securities
$ 2 
$ 3 
$ 7 
$ 8 
Shareholders' Equity (Details 2) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2014
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward]
 
Beginning balance
$ (2,374)
Other comprehensive (loss) income before reclassifications, net
(224)
Amounts reclassified from accumulated other comprehensive loss:
 
Amounts reclassified from accumulated other comprehensive loss
111 
Tax benefit
(31)
Amounts reclassified from accumulated other comprehensive loss, net
80 
Net current period other comprehensive (loss) income
(144)
Ending balance
(2,518)
Change in Fair Value of Investments [Member]
 
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward]
 
Beginning balance
1
Other comprehensive (loss) income before reclassifications, net
(1)1
Amounts reclassified from accumulated other comprehensive loss:
 
Amounts reclassified from accumulated other comprehensive loss
1
Tax benefit
1
Amounts reclassified from accumulated other comprehensive loss, net
1
Net current period other comprehensive (loss) income
(1)1
Ending balance
1
Change in Fair Value of Derivatives [Member]
 
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward]
 
Beginning balance
(22)1
Other comprehensive (loss) income before reclassifications, net
1
Amounts reclassified from accumulated other comprehensive loss:
 
Amounts reclassified from accumulated other comprehensive loss
17 1
Tax benefit
(5)1
Amounts reclassified from accumulated other comprehensive loss, net
12 1
Net current period other comprehensive (loss) income
13 1
Ending balance
(9)1
Foreign Currency Translation Adjustments [Member]
 
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward]
 
Beginning balance
169 
Other comprehensive (loss) income before reclassifications, net
(226)
Amounts reclassified from accumulated other comprehensive loss:
 
Amounts reclassified from accumulated other comprehensive loss
Tax benefit
Amounts reclassified from accumulated other comprehensive loss, net
Net current period other comprehensive (loss) income
(226)
Ending balance
(57)
Post-Retirement Benefit Obligation [Member]
 
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward]
 
Beginning balance
(2,522)2
Other comprehensive (loss) income before reclassifications, net
2
Amounts reclassified from accumulated other comprehensive loss:
 
Amounts reclassified from accumulated other comprehensive loss
94 2
Tax benefit
(26)2
Amounts reclassified from accumulated other comprehensive loss, net
68 2
Net current period other comprehensive (loss) income
70 2
Ending balance
$ (2,452)2
Employee Benefits (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
U.K. [Member]
 
 
 
 
Defined Benefit Plan Disclosure
 
 
 
 
Service cost
$ 0 
$ 0 
$ 0 
$ 0 
Interest cost
58 
52 
174 
156 
Expected return on plan assets
(82)
(74)
(247)
(223)
Amortization of net actuarial loss
13 
12 
40 
36 
Net periodic (benefit) cost
 
 
(33)
(31)
Curtailment loss (gain) and other
 
 
Total net periodic (benefit) cost
(11)
(10)
(33)
(31)
Estimate of contributions to defined benefit pension plans for the current fiscal year
183 
 
183 
 
Contributions made to defined benefit pension plans
24 
54 
145 
241 
U.S. [Member]
 
 
 
 
Defined Benefit Plan Disclosure
 
 
 
 
Service cost
Interest cost
32 
28 
96 
84 
Expected return on plan assets
(39)
(34)
(117)
(103)
Amortization of net actuarial loss
11 
13 
32 
39 
Net periodic (benefit) cost
 
 
11 
20 
Curtailment loss (gain) and other
 
 
Total net periodic (benefit) cost
12 
20 
Estimate of contributions to defined benefit pension plans for the current fiscal year
173 
 
173 
 
Contributions made to defined benefit pension plans
39 
54 
112 
122 
Other [Member]
 
 
 
 
Defined Benefit Plan Disclosure
 
 
 
 
Service cost
14 
Interest cost
12 
11 
36 
33 
Expected return on plan assets
(15)
(15)
(45)
(44)
Amortization of net actuarial loss
19 
Net periodic (benefit) cost
 
 
(3)
22 
Curtailment loss (gain) and other
 
 
(3)
Total net periodic (benefit) cost
(1)
(6)
22 
Estimate of contributions to defined benefit pension plans for the current fiscal year
29 
 
29 
 
Contributions made to defined benefit pension plans
$ 7 
$ 5 
$ 23 
$ 49 
Share-Based Compensation Plans Share-based compensation expenses recognized (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Total share-based compensation expense
$ 72 
$ 70 
$ 247 
$ 207 
Restricted share units (RSUs) [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Total share-based compensation expense
41 
40 
144 
135 
Performance share awards (“PSAs”) [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Total share-based compensation expense
29 
28 
96 
66 
Share options [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Total share-based compensation expense
Employee share purchase plans [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Total share-based compensation expense
$ 2 
$ 2 
$ 7 
$ 5 
Share-Based Compensation Plans Restricted share unit activity (Details) (Restricted share units (RSUs) [Member], USD $)
In Thousands, except Per Share data, unless otherwise specified
9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Restricted share units (RSUs) [Member]
 
 
Non-vested share awards (in shares)
 
 
Non-vested at beginning of period
9,759 
10,432 
Granted
2,675 
3,598 
Vested
(3,561)
(3,618)
Forfeited
(385)
(308)
Non-vested at end of period
8,488 
10,104 
Weighted Average Fair value (in dollars per share)
 
 
Non-vested at beginning of period
$ 51 1
$ 44 1
Granted
$ 84 1
$ 62 1
Vested
$ 49 1
$ 44 1
Forfeited
$ 56 1
$ 47 1
Non-vested at end of period
$ 63 1
$ 51 1
Share-Based Compensation Plans Performance Share Awards Narrative (Details) (Performance Shares [Member])
9 Months Ended
Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Vesting conditions period
3 years 
Minimum [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Shares issued, percent
0.00% 
Maximum [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Shares issued, percent
200.00% 
Share-Based Compensation Plans Schedule of Performance-based plans (Details) (Performance Shares [Member], USD $)
In Millions, except Share data in Thousands, unless otherwise specified
9 Months Ended 12 Months Ended
Sep. 30, 2014
Dec. 31, 2013
Dec. 31, 2012
Performance Shares [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Target PSAs granted
816 
1,135 
1,369 
Fair value
$ 81 1
$ 58 1
$ 47 1
Number of shares that would be issued based on current performance levels
804 
2,211 
2,656 
Unamortized expense, based on current performance levels
$ 52 
$ 57 
$ 11 
Share-Based Compensation Plans Share options activity (Details) (Share options [Member], USD $)
In Thousands, except Per Share data, unless otherwise specified
9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Share options [Member]
 
 
Share Options (in shares)
 
 
Beginning outstanding
3,462 
5,611 
Granted
Exercised
(953)
(1,694)
Forfeited and expired
(6)
(29)
Outstanding at end of period
2,503 
3,888 
Exercisable at end of period
2,464 
3,681 
Weighted-Average Exercise Price (in dollars per share)
 
 
Beginning outstanding
$ 32 
$ 32 
Granted
$ 0 
$ 0 
Exercised
$ 32 
$ 32 
Forfeited and expired
$ 37 
$ 34 
Outstanding at end of period
$ 32 
$ 32 
Exercisable at end of period
$ 32 
$ 32 
Share-Based Compensation Plans Stock Option Narrative (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Closing share price (in dollars per share)
$ 87.67 
 
Aggregate intrinsic value of options outstanding
$ 138 
 
Aggregate intrinsic value of exercisable options outstanding
137 
 
Unamortized deferred compensation expense
$ 395 
 
Remaining weighted-average amortization period
2 years 1 month 6 days 
 
Share options [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Weighted average remaining contractual life
1 year 8 months 12 days 
2 years 2 months 24 days 
Derivatives and Hedging Foreign Exchange Risk Management Narrative (Details)
9 Months Ended
Sep. 30, 2014
Not Designated as Hedging Instrument [Member]
 
Derivative [Line Items]
 
Foreign currency exposures, maximum hedging period
1 year 
Cash Flow Hedging [Member]
 
Derivative [Line Items]
 
Foreign currency exposures, maximum average hedging period
2 years 
Foreign currency exposures, maximum hedging period
5 years 
Net Investment Hedging [Member]
 
Derivative [Line Items]
 
Foreign currency exposures, maximum hedging period
2 years 
Derivatives and Hedging Interest Rate Management Risk Narrative (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Derivative [Line Items]
 
 
 
 
Estimated pretax losses currently included within Accumulated Other Comprehensive Loss that will be reclassified to earnings in next twelve months
$ 3 
 
$ 3 
 
Amount of Gain (Loss) Recognized in Income on Derivative
(6)
(19)
(8)
Not Designated as Hedging Instrument [Member] |
Foreign exchange contracts [Member]
 
 
 
 
Derivative [Line Items]
 
 
 
 
Amount of Gain (Loss) Recognized in Income on Derivative
$ (11)
$ 3 
$ (13)
$ (15)
Cash Flow Hedging [Member]
 
 
 
 
Derivative [Line Items]
 
 
 
 
Interest rate fluctuations, maximum hedging period
 
 
2 years 
 
Derivatives and Hedging Notional and fair values of derivative instruments (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2014
Dec. 31, 2013
Derivatives, Fair Value
 
 
Notional Amount
$ 1,290 
$ 1,577 
Derivative Assets
55 1
80 1
Derivative Liabilities
65 2
93 2
Gross Amounts Offset in the Statement of Financial Position
(15)
(30)
Net Amounts of Assets Presented in the Statement of Financial Position
40 3
50 3
Gross Amounts Offset in the Statement of Financial Position
(15)
(30)
Net Amounts of Liabilities Presented in the Statement of Financial Position
50 4
63 4
Other Current Assets [Member]
 
 
Derivatives, Fair Value
 
 
Derivative Assets
25 
46 
Net Amounts of Assets Presented in the Statement of Financial Position
13 
18 
Other Noncurrent Assets [Member]
 
 
Derivatives, Fair Value
 
 
Derivative Assets
30 
34 
Net Amounts of Assets Presented in the Statement of Financial Position
27 
32 
Other Current Liabilities [Member]
 
 
Derivatives, Fair Value
 
 
Derivative Liabilities
17 
51 
Net Amounts of Liabilities Presented in the Statement of Financial Position
23 
Other Noncurrent Liabilities [Member]
 
 
Derivatives, Fair Value
 
 
Derivative Liabilities
48 
42 
Net Amounts of Liabilities Presented in the Statement of Financial Position
45 
40 
Derivatives accounted for as hedges [Member]
 
 
Derivatives, Fair Value
 
 
Notional Amount
1,106 
1,362 
Derivative Assets
55 1
80 1
Derivative Liabilities
65 2
93 2
Gross Amounts Offset in the Statement of Financial Position
(15)
(30)
Net Amounts of Assets Presented in the Statement of Financial Position
40 3
50 3
Gross Amounts Offset in the Statement of Financial Position
(15)
(30)
Net Amounts of Liabilities Presented in the Statement of Financial Position
50 4
63 4
Derivatives accounted for as hedges [Member] |
Interest rate contracts [Member]
 
 
Derivatives, Fair Value
 
 
Notional Amount
171 
Derivative Assets
1
1
Derivative Liabilities
2
2
Gross Amounts Offset in the Statement of Financial Position
Net Amounts of Assets Presented in the Statement of Financial Position
3
3
Gross Amounts Offset in the Statement of Financial Position
Net Amounts of Liabilities Presented in the Statement of Financial Position
4
4
Derivatives accounted for as hedges [Member] |
Foreign exchange contracts [Member]
 
 
Derivatives, Fair Value
 
 
Notional Amount
1,106 
1,191 
Derivative Assets
55 1
71 1
Derivative Liabilities
65 2
93 2
Gross Amounts Offset in the Statement of Financial Position
(15)
(30)
Net Amounts of Assets Presented in the Statement of Financial Position
40 3
41 3
Gross Amounts Offset in the Statement of Financial Position
(15)
(30)
Net Amounts of Liabilities Presented in the Statement of Financial Position
50 4
63 4
Not Designated as Hedging Instrument [Member] |
Foreign exchange contracts [Member]
 
 
Derivatives, Fair Value
 
 
Notional Amount
184 
215 
Derivative Assets
1
1
Derivative Liabilities
2
2
Gross Amounts Offset in the Statement of Financial Position
Net Amounts of Assets Presented in the Statement of Financial Position
3
3
Gross Amounts Offset in the Statement of Financial Position
Net Amounts of Liabilities Presented in the Statement of Financial Position
$ 0 4
$ 0 4
Derivatives and Hedging Derivatives gains (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Derivative Instruments, Gain (Loss)
 
 
 
 
Amount of Gain (Loss) Recognized in Income on Derivative
$ (6)
$ 1 
$ (19)
$ (8)
Derivatives accounted for as hedges [Member] |
Cash Flow Hedging [Member]
 
 
 
 
Derivative Instruments, Gain (Loss)
 
 
 
 
Gain (Loss) recognized in Accumulated Other Comprehensive Loss:
(3)
(28)
Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion):
(10)
(16)
(8)
Derivatives accounted for as hedges [Member] |
Cash Flow Hedging [Member] |
Compensation and Benefits [Member]
 
 
 
 
Derivative Instruments, Gain (Loss)
 
 
 
 
Gain (Loss) recognized in Accumulated Other Comprehensive Loss:
(2)
(3)
14 
(17)
Derivatives accounted for as hedges [Member] |
Cash Flow Hedging [Member] |
Other Income [Member]
 
 
 
 
Derivative Instruments, Gain (Loss)
 
 
 
 
Gain (Loss) recognized in Accumulated Other Comprehensive Loss:
(9)
(11)
Derivatives accounted for as hedges [Member] |
Cash Flow Hedging [Member] |
Sponsorship Fees [Member]
 
 
 
 
Derivative Instruments, Gain (Loss)
 
 
 
 
Gain (Loss) recognized in Accumulated Other Comprehensive Loss:
(3)
 
(1)
 
Derivatives accounted for as hedges [Member] |
Interest rate contracts [Member] |
Cash Flow Hedging [Member]
 
 
 
 
Derivative Instruments, Gain (Loss)
 
 
 
 
Gain (Loss) recognized in Accumulated Other Comprehensive Loss:
1
1
1
1
Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion):
2
2
(1)2
(1)2
Derivatives accounted for as hedges [Member] |
Foreign exchange contracts [Member] |
Cash Flow Hedging [Member]
 
 
 
 
Derivative Instruments, Gain (Loss)
 
 
 
 
Gain (Loss) recognized in Accumulated Other Comprehensive Loss:
(3)3
3
3
(28)3
Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion):
4
(10)4
(15)4
(7)4
Derivatives accounted for as hedges [Member] |
Foreign exchange contracts [Member] |
Cash Flow Hedging [Member] |
Compensation and Benefits [Member]
 
 
 
 
Derivative Instruments, Gain (Loss)
 
 
 
 
Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion):
(1)
(5)
(4)
(9)
Derivatives accounted for as hedges [Member] |
Foreign exchange contracts [Member] |
Cash Flow Hedging [Member] |
Other Income [Member]
 
 
 
 
Derivative Instruments, Gain (Loss)
 
 
 
 
Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion):
(5)
(6)
Derivatives accounted for as hedges [Member] |
Foreign exchange contracts [Member] |
Cash Flow Hedging [Member] |
Sponsorship Fees [Member]
 
 
 
 
Derivative Instruments, Gain (Loss)
 
 
 
 
Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion):
 
(1)
Derivatives accounted for as hedges [Member] |
Foreign exchange contracts [Member] |
Cash Flow Hedging [Member] |
Interest Expense [Member]
 
 
 
 
Derivative Instruments, Gain (Loss)
 
 
 
 
Gain (Loss) reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion):
(3)
 
(8)
 
Derivatives accounted for as hedges [Member] |
Foreign exchange contracts [Member] |
Fair value hedges
 
 
 
 
Derivative Instruments, Gain (Loss)
 
 
 
 
Amount of Gain (Loss) Recognized in Income on Derivative
(9)5 6
(7)5 6
(9)5 6
(8)5 6
Amount of Gain (Loss) Recognized in Income on Related Hedged Item
$ 9 6
$ 7 6
$ 9 5 6
$ 8 5 6
[4] Included within Compensation and benefits ($1 million and $5 million loss for the three months ended September 30, 2014 and 2013, respectively, and $4 million and $9 million loss for the nine months ended September 30, 2014 and 2013, respectively), Other income ($5 million gain and $5 million loss for the three months ended September 30, 2014 and 2013, respectively, and $6 million loss and $3 million gain for the nine months ended September 30, 2014 and 2013, respectively), Interest expenses ($3 million and $8 million loss for the three and nine months ended September 30, 2014, respectively), and Other general expenses ($3 million gain for the three months ended September 30, 2014, and $3 million gain and $1 million loss for the nine months ended September 30, 2014 and 2013, respectively).
Fair Value Measurements and Financial Instruments Schedule of assets and liabilities that are measured at fair value on a recurring basis (Details) (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Recurring [Member]
Fair Value [Member]
Money market funds and highly liquid debt securities
Dec. 31, 2013
Recurring [Member]
Fair Value [Member]
Money market funds and highly liquid debt securities
Sep. 30, 2014
Recurring [Member]
Fair Value [Member]
Money market funds [Member]
Dec. 31, 2013
Recurring [Member]
Fair Value [Member]
Money market funds [Member]
Sep. 30, 2014
Recurring [Member]
Fair Value [Member]
Highly liquid debt securities [Member]
Dec. 31, 2013
Recurring [Member]
Fair Value [Member]
Highly liquid debt securities [Member]
Sep. 30, 2014
Recurring [Member]
Fair Value [Member]
Corporate bonds [Member]
Dec. 31, 2013
Recurring [Member]
Fair Value [Member]
Corporate bonds [Member]
Sep. 30, 2014
Recurring [Member]
Fair Value [Member]
Government bonds [Member]
Dec. 31, 2013
Recurring [Member]
Fair Value [Member]
Government bonds [Member]
Sep. 30, 2014
Recurring [Member]
Fair Value [Member]
Equity securities [Member]
Dec. 31, 2013
Recurring [Member]
Fair Value [Member]
Equity securities [Member]
Sep. 30, 2014
Recurring [Member]
Fair Value [Member]
Interest rate contracts [Member]
Dec. 31, 2013
Recurring [Member]
Fair Value [Member]
Interest rate contracts [Member]
Sep. 30, 2014
Recurring [Member]
Fair Value [Member]
Foreign exchange contracts [Member]
Dec. 31, 2013
Recurring [Member]
Fair Value [Member]
Foreign exchange contracts [Member]
Sep. 30, 2014
Recurring [Member]
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Money market funds and highly liquid debt securities
Dec. 31, 2013
Recurring [Member]
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Money market funds and highly liquid debt securities
Sep. 30, 2014
Recurring [Member]
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Corporate bonds [Member]
Dec. 31, 2013
Recurring [Member]
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Corporate bonds [Member]
Sep. 30, 2014
Recurring [Member]
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Government bonds [Member]
Dec. 31, 2013
Recurring [Member]
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Government bonds [Member]
Sep. 30, 2014
Recurring [Member]
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Equity securities [Member]
Dec. 31, 2013
Recurring [Member]
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Equity securities [Member]
Sep. 30, 2014
Recurring [Member]
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Interest rate contracts [Member]
Dec. 31, 2013
Recurring [Member]
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Interest rate contracts [Member]
Sep. 30, 2014
Recurring [Member]
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Foreign exchange contracts [Member]
Dec. 31, 2013
Recurring [Member]
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Foreign exchange contracts [Member]
Sep. 30, 2014
Recurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
Money market funds and highly liquid debt securities
Dec. 31, 2013
Recurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
Money market funds and highly liquid debt securities
Sep. 30, 2014
Recurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
Corporate bonds [Member]
Dec. 31, 2013
Recurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
Corporate bonds [Member]
Sep. 30, 2014
Recurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
Government bonds [Member]
Dec. 31, 2013
Recurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
Government bonds [Member]
Sep. 30, 2014
Recurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
Equity securities [Member]
Dec. 31, 2013
Recurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
Equity securities [Member]
Sep. 30, 2014
Recurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
Interest rate contracts [Member]
Dec. 31, 2013
Recurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
Interest rate contracts [Member]
Sep. 30, 2014
Recurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
Foreign exchange contracts [Member]
Dec. 31, 2013
Recurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
Foreign exchange contracts [Member]
Sep. 30, 2014
Recurring [Member]
Significant Unobservable Inputs (Level 3) [Member]
Money market funds and highly liquid debt securities
Dec. 31, 2013
Recurring [Member]
Significant Unobservable Inputs (Level 3) [Member]
Money market funds and highly liquid debt securities
Sep. 30, 2014
Recurring [Member]
Significant Unobservable Inputs (Level 3) [Member]
Corporate bonds [Member]
Dec. 31, 2013
Recurring [Member]
Significant Unobservable Inputs (Level 3) [Member]
Corporate bonds [Member]
Sep. 30, 2014
Recurring [Member]
Significant Unobservable Inputs (Level 3) [Member]
Government bonds [Member]
Dec. 31, 2013
Recurring [Member]
Significant Unobservable Inputs (Level 3) [Member]
Government bonds [Member]
Sep. 30, 2014
Recurring [Member]
Significant Unobservable Inputs (Level 3) [Member]
Equity securities [Member]
Dec. 31, 2013
Recurring [Member]
Significant Unobservable Inputs (Level 3) [Member]
Equity securities [Member]
Sep. 30, 2014
Recurring [Member]
Significant Unobservable Inputs (Level 3) [Member]
Interest rate contracts [Member]
Dec. 31, 2013
Recurring [Member]
Significant Unobservable Inputs (Level 3) [Member]
Interest rate contracts [Member]
Sep. 30, 2014
Recurring [Member]
Significant Unobservable Inputs (Level 3) [Member]
Foreign exchange contracts [Member]
Dec. 31, 2013
Recurring [Member]
Significant Unobservable Inputs (Level 3) [Member]
Foreign exchange contracts [Member]
Fair Value Disclosures [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net assets value (in dollar per share)
 
$ 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Realized gain
$ 6,000,000 
 
$ 6,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrealized gain (loss)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Money market funds and highly liquid debt securities
 
 
 
1,649,000,000 1
2,079,000,000 2
1,647,000,000 
2,054,000,000 
2,000,000 
25,000,000 
 
 
 
 
 
 
 
 
 
 
1,647,000,000 1
2,054,000,000 2
 
 
 
 
 
 
 
 
 
 
2,000,000 1
25,000,000 2
 
 
 
 
 
 
 
 
 
 
1
2
 
 
 
 
 
 
 
 
 
 
Other investments
 
 
 
 
 
 
 
 
 
1,000,000 
2,000,000 
7,000,000 
7,000,000 
11,000,000 
13,000,000 
 
 
 
 
 
 
6,000,000 
6,000,000 
 
 
 
 
 
 
7,000,000 
7,000,000 
5,000,000 
7,000,000 
 
 
 
 
 
 
1,000,000 
2,000,000 
 
 
 
 
Derivatives
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
9,000,000 
55,000,000 
71,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
9,000,000 
55,000,000 
71,000,000 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 65,000,000 
$ 93,000,000 
 
 
 
 
 
 
 
 
 
 
$ 0 
$ 0 
 
 
 
 
 
 
 
 
 
 
$ 65,000,000 
$ 93,000,000 
 
 
 
 
 
 
 
 
 
 
$ 0 
$ 0 
Fair Value Measurements and Financial Instruments Schedule of financial instruments where the carrying amounts and fair values differ (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2014
Dec. 31, 2013
Fair value of financial instrument
 
 
Carrying value of total debt
$ 4,840 
$ 3,686 
Fair value of total debt
$ 5,190 
$ 3,894 
Commitments and Contingencies (Details)
3 Months Ended 9 Months Ended 0 Months Ended 1 Months Ended 0 Months Ended
Sep. 30, 2014
USD ($)
Dec. 31, 2013
USD ($)
Sep. 30, 2014
Potential Claim for Pension Advisory Services [Member]
USD ($)
Apr. 30, 2014
Potential Claim for Pension Advisory Services [Member]
GBP (£)
Sep. 30, 2014
Commitments to fund certain limited partnerships or subsidiaries [Member]
USD ($)
Sep. 30, 2014
Commitments to fund certain limited partnerships or subsidiaries [Member]
USD ($)
Dec. 31, 2013
Commitments to fund certain limited partnerships or subsidiaries [Member]
USD ($)
Jun. 15, 2011
Commitments to fund certain limited partnerships or subsidiaries [Member]
Subsidiaries [Member]
Term Credit Agreement [Member]
USD ($)
Mar. 20, 2012
Commitments to fund certain limited partnerships or subsidiaries [Member]
Subsidiaries [Member]
Five-Year Agreement [Member]
Mar. 20, 2012
Commitments to fund certain limited partnerships or subsidiaries [Member]
Subsidiaries [Member]
Five-Year Agreement [Member]
USD ($)
Oct. 15, 2010
Commitments to fund certain limited partnerships or subsidiaries [Member]
Subsidiaries [Member]
Euro Facility Agreement [Member]
EUR (€)
Jan. 31, 2014
Northrop Grumman Corporation [Member]
USD ($)
Sep. 14, 2010
Opry Mills Mall Limited Partnership [Member]
USD ($)
Sep. 30, 2014
Philips [Member]
USD ($)
Jan. 2, 2014
Philips [Member]
GBP (£)
Dec. 12, 2012
Mazeikiu Nafta [Member]
USD ($)
Sep. 30, 2014
International Road Transport Union [Member]
Litigation Award [Member]
USD ($)
Jun. 1, 2007
International Road Transport Union [Member]
Litigation Award [Member]
CHF
Jun. 1, 2007
International Road Transport Union [Member]
Litigation USD Denominated Award [Member]
USD ($)
Jun. 1, 2007
International Road Transport Union [Member]
Litigation Expenses and Interest [Member]
USD ($)
Sep. 30, 2014
Versicherung Aktiengesellschaft [Member]
Litigation Award [Member]
USD ($)
Dec. 27, 2012
Versicherung Aktiengesellschaft [Member]
Litigation Award [Member]
EUR (€)
Oct. 27, 2014
Subsequent Event [Member]
Mazeikiu Nafta [Member]
USD ($)
Legal, Guarantees and Indemnifications
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss Contingency, Range of Possible Loss, Minimum
$ 0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss Contingency, Range of Possible Loss, Maximum
700,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Damages sought
 
 
 
 
 
 
 
 
 
 
 
340,000,000 
200,000,000 
307,000,000 
189,000,000 
125,000,000 
48,000,000 
46,000,000 
3,000,000 
30,000,000 
232,000,000 
183,000,000 
 
Days of trial
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
11 days 
Case settlement amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5,000,000 
Amount of coverage for damages contended by the insurers
 
 
 
 
 
 
 
 
 
 
 
 
50,000,000 
 
 
 
 
 
 
 
 
 
 
Difference amount of damages sought by the client
 
 
 
 
 
 
 
 
 
 
 
 
150,000,000 
 
 
 
 
 
 
 
 
 
 
Loss Contingency, Estimate of Possible Loss
 
 
73,000,000 
45,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum potential funding under commitments
83,000,000 
98,000,000 
 
 
16,000,000 
16,000,000 
34,000,000 
450,000,000 
 
400,000,000 
650,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Term of credit agreement
 
 
 
 
 
 
 
 
5 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Letters of credit outstanding
97,000,000 
71,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commitments funded
 
 
 
 
$ 4,000,000 
$ 18,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment Information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
segment
Sep. 30, 2013
Segment Reporting Information
 
 
 
 
Number of reportable segments
 
 
 
Total revenue
$ 2,880 
$ 2,794 
$ 8,746 
$ 8,606 
Total commissions, fees and other revenue
2,873 
2,786 
8,727 
8,585 
Total fiduciary investment income
19 
21 
Operating income before income tax
417 
364 
1,331 
1,156 
Interest income
Interest expense
(65)
(53)
(188)
(153)
Other income
35 
39 
34 
54 
Income before income taxes
390 
353 
1,184 
1,063 
Total operating segments [Member]
 
 
 
 
Segment Reporting Information
 
 
 
 
Operating income before income tax
456 
408 
1,454 
1,289 
Risk Solutions [Member]
 
 
 
 
Segment Reporting Information
 
 
 
 
Total revenue
1,836 
1,821 
5,778 
5,736 
Total commissions, fees and other revenue
1,829 
1,813 
5,759 
5,715 
Total fiduciary investment income
19 
21 
Operating income before income tax
343 
333 
1,205 
1,127 
Retail brokerage [Member]
 
 
 
 
Segment Reporting Information
 
 
 
 
Total commissions, fees and other revenue
1,458 
1,424 
4,619 
4,548 
Reinsurance brokerage [Member]
 
 
 
 
Segment Reporting Information
 
 
 
 
Total commissions, fees and other revenue
371 
389 
1,140 
1,167 
HR Solutions [Member]
 
 
 
 
Segment Reporting Information
 
 
 
 
Total revenue
1,057 
981 
3,004 
2,891 
Total commissions, fees and other revenue
1,057 
981 
3,004 
2,891 
Total fiduciary investment income
Operating income before income tax
113 
75 
249 
162 
Consulting services [Member]
 
 
 
 
Segment Reporting Information
 
 
 
 
Total commissions, fees and other revenue
466 
406 
1,245 
1,176 
Outsourcing [Member]
 
 
 
 
Segment Reporting Information
 
 
 
 
Total commissions, fees and other revenue
604 
587 
1,788 
1,746 
Intrasegment [Member]
 
 
 
 
Segment Reporting Information
 
 
 
 
Total commissions, fees and other revenue
(13)
(12)
(29)
(31)
Intersegment elimination [Member]
 
 
 
 
Segment Reporting Information
 
 
 
 
Total revenue
(13)
(8)
(36)
(21)
Total commissions, fees and other revenue
(13)
(8)
(36)
(21)
Unallocated Expense [Member]
 
 
 
 
Segment Reporting Information
 
 
 
 
Operating income before income tax
$ (39)
$ (44)
$ (123)
$ (133)
Guarantee of Registered Securities (Narrative) (Details)
Sep. 30, 2014
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]
 
Debt interest rate percentage
3.50% 
3.125% Senior notes due 2016 [Member]
 
Condensed Financial Statements, Captions [Line Items]
 
Debt interest rate percentage
3.125% 
5.00% Senior notes due September 2020 [Member]
 
Condensed Financial Statements, Captions [Line Items]
 
Debt interest rate percentage
5.00% 
8.205% Junior subordinated deferrable interest debentures due January 2027 [Member]
 
Condensed Financial Statements, Captions [Line Items]
 
Debt interest rate percentage
8.205% 
6.25% Senior notes due September 2040 [Member]
 
Condensed Financial Statements, Captions [Line Items]
 
Debt interest rate percentage
6.25% 
4.250% Senior notes due 2042 [Member]
 
Condensed Financial Statements, Captions [Line Items]
 
Debt interest rate percentage
4.25% 
4.45% notes due 2043 [Member]
 
Condensed Financial Statements, Captions [Line Items]
 
Debt interest rate percentage
4.45% 
4.00% notes due 2023 [Member]
 
Condensed Financial Statements, Captions [Line Items]
 
Debt interest rate percentage
4.00% 
2.875% notes due 2026 [Member]
 
Condensed Financial Statements, Captions [Line Items]
 
Debt interest rate percentage
2.875% 
3.50% Notes due June 2024 [Member]
 
Condensed Financial Statements, Captions [Line Items]
 
Debt interest rate percentage
3.50% 
4.60% notes due May 2044 [Member]
 
Condensed Financial Statements, Captions [Line Items]
 
Debt interest rate percentage
4.60% 
3.50% notes due 2024 [Member]
 
Condensed Financial Statements, Captions [Line Items]
 
Debt interest rate percentage
3.50% 
4.60% notes due 2044 [Member]
 
Condensed Financial Statements, Captions [Line Items]
 
Debt interest rate percentage
4.60% 
Guarantee of Registered Securities - Condensed Consolidating Statement of Income (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Revenue
 
 
 
 
Commissions, fees and other
$ 2,873 
$ 2,786 
$ 8,727 
$ 8,585 
Fiduciary investment income
19 
21 
Total revenue
2,880 
2,794 
8,746 
8,606 
Expenses
 
 
 
 
Compensation and benefits
1,707 
1,666 
5,166 
5,103 
Other general expenses
756 
764 
2,249 
2,347 
Total operating expenses
2,463 
2,430 
7,415 
7,450 
Operating income
417 
364 
1,331 
1,156 
Interest income
Interest expense
(65)
(53)
(188)
(153)
Intercompany interest income (expense)
Other income
35 
39 
34 
54 
Income before income taxes
390 
353 
1,184 
1,063 
Income tax expense (benefit)
75 
89 
220 
275 
Income (loss) before equity in earnings of subsidiaries
315 
264 
964 
788 
Equity in earnings of subsidiaries, net of tax
Net income
315 
264 
964 
788 
Less: Net income attributable to noncontrolling interests
26 
30 
Net income attributable to Aon shareholders
309 
256 
938 
758 
Aon plc [Member]
 
 
 
 
Revenue
 
 
 
 
Commissions, fees and other
Fiduciary investment income
Total revenue
Expenses
 
 
 
 
Compensation and benefits
11 
29 
27 
Other general expenses
18 
14 
Total operating expenses
10 
11 
47 
41 
Operating income
(10)
(10)
(47)
(39)
Interest income
(2)
(6)
Interest expense
(25)
(6)
(49)
(12)
Intercompany interest income (expense)
113 
25 
335 
11 
Other income
Income before income taxes
78 
234 
(39)
Income tax expense (benefit)
16 
(2)
49 
(11)
Income (loss) before equity in earnings of subsidiaries
62 
11 
185 
(28)
Equity in earnings of subsidiaries, net of tax
247 
245 
753 
786 
Net income
309 
256 
938 
758 
Less: Net income attributable to noncontrolling interests
Net income attributable to Aon shareholders
309 
256 
938 
758 
Aon Corporation [Member]
 
 
 
 
Revenue
 
 
 
 
Commissions, fees and other
Fiduciary investment income
Total revenue
Expenses
 
 
 
 
Compensation and benefits
14 
19 
34 
Other general expenses
14 
37 
29 
Total operating expenses
19 
19 
56 
63 
Operating income
(19)
(19)
(56)
(63)
Interest income
Interest expense
(42)
(39)
(105)
(106)
Intercompany interest income (expense)
(73)
11 
(220)
96 
Other income
13 
10 
10 
Income before income taxes
(131)
(33)
(370)
(61)
Income tax expense (benefit)
(52)
(14)
(144)
(24)
Income (loss) before equity in earnings of subsidiaries
(79)
(19)
(226)
(37)
Equity in earnings of subsidiaries, net of tax
202 
127 
734 
617 
Net income
123 
108 
508 
580 
Less: Net income attributable to noncontrolling interests
Net income attributable to Aon shareholders
123 
108 
508 
580 
Other Non-Guarantor Subsidiaries [Member]
 
 
 
 
Revenue
 
 
 
 
Commissions, fees and other
2,873 
2,785 
8,727 
8,583 
Fiduciary investment income
19 
21 
Total revenue
2,880 
2,793 
8,746 
8,604 
Expenses
 
 
 
 
Compensation and benefits
1,698 
1,641 
5,118 
5,042 
Other general expenses
736 
759 
2,194 
2,304 
Total operating expenses
2,434 
2,400 
7,312 
7,346 
Operating income
446 
393 
1,434 
1,258 
Interest income
12 
Interest expense
(8)
(34)
(35)
Intercompany interest income (expense)
(40)
(36)
(115)
(107)
Other income
31 
26 
23 
44 
Income before income taxes
443 
377 
1,320 
1,163 
Income tax expense (benefit)
111 
105 
315 
310 
Income (loss) before equity in earnings of subsidiaries
332 
272 
1,005 
853 
Equity in earnings of subsidiaries, net of tax
Net income
332 
272 
1,005 
853 
Less: Net income attributable to noncontrolling interests
26 
30 
Net income attributable to Aon shareholders
326 
264 
979 
823 
Consolidating Adjustments [Member]
 
 
 
 
Revenue
 
 
 
 
Commissions, fees and other
Fiduciary investment income
Total revenue
Expenses
 
 
 
 
Compensation and benefits
Other general expenses
Total operating expenses
Operating income
Interest income
Interest expense
Intercompany interest income (expense)
Other income
Income before income taxes
Income tax expense (benefit)
Income (loss) before equity in earnings of subsidiaries
Equity in earnings of subsidiaries, net of tax
(449)
(372)
(1,487)
(1,403)
Net income
(449)
(372)
(1,487)
(1,403)
Less: Net income attributable to noncontrolling interests
Net income attributable to Aon shareholders
$ (449)
$ (372)
$ (1,487)
$ (1,403)
Guarantee of Registered Securities - Condensed Consolidating Statement of Comprehensive Income (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
Net income
$ 315 
$ 264 
$ 964 
$ 788 
Less: Net income attributable to noncontrolling interests
26 
30 
Net income attributable to Aon shareholders
309 
256 
938 
758 
Change in fair value of investments
(14)
(1)
(1)
Change in fair value of derivatives
(8)
13 
(12)
Foreign currency translation adjustments
(318)
155 
(228)
(77)
Post-retirement benefit obligation
26 
24 
70 
65 
Total other comprehensive (loss) income
(300)
174 
(146)
(25)
Equity in other comprehensive loss of subsidiaries, net of tax
Less: Other comprehensive income (loss) attributable to noncontrolling interests
(2)
Total other comprehensive (loss) income attributable to Aon shareholders
(300)
171 
(144)
(26)
Comprehensive income attributable to Aon shareholders
427 
794 
732 
Aon plc [Member]
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
Net income
309 
256 
938 
758 
Less: Net income attributable to noncontrolling interests
Net income attributable to Aon shareholders
309 
256 
938 
758 
Change in fair value of investments
Change in fair value of derivatives
Foreign currency translation adjustments
Post-retirement benefit obligation
Total other comprehensive (loss) income
Equity in other comprehensive loss of subsidiaries, net of tax
(300)
170 
(144)
(27)
Less: Other comprehensive income (loss) attributable to noncontrolling interests
Total other comprehensive (loss) income attributable to Aon shareholders
(300)
170 
(144)
(27)
Comprehensive income attributable to Aon shareholders
426 
794 
731 
Aon Corporation [Member]
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
Net income
123 
108 
508 
580 
Less: Net income attributable to noncontrolling interests
Net income attributable to Aon shareholders
123 
108 
508 
580 
Change in fair value of investments
(4)
Change in fair value of derivatives
(1)
(1)
Foreign currency translation adjustments
(17)
(19)
(14)
Post-retirement benefit obligation
17 
22 
Total other comprehensive (loss) income
(12)
11 
(3)
13 
Equity in other comprehensive loss of subsidiaries, net of tax
(285)
157 
(142)
(38)
Less: Other comprehensive income (loss) attributable to noncontrolling interests
Total other comprehensive (loss) income attributable to Aon shareholders
(297)
168 
(145)
(25)
Comprehensive income attributable to Aon shareholders
(174)
276 
363 
555 
Other Non-Guarantor Subsidiaries [Member]
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
Net income
332 
272 
1,005 
853 
Less: Net income attributable to noncontrolling interests
26 
30 
Net income attributable to Aon shareholders
326 
264 
979 
823 
Change in fair value of investments
(10)
(1)
(1)
Change in fair value of derivatives
(7)
14 
(17)
Foreign currency translation adjustments
(301)
149 
(209)
(63)
Post-retirement benefit obligation
20 
17 
53 
43 
Total other comprehensive (loss) income
(288)
163 
(143)
(38)
Equity in other comprehensive loss of subsidiaries, net of tax
Less: Other comprehensive income (loss) attributable to noncontrolling interests
(2)
Total other comprehensive (loss) income attributable to Aon shareholders
(288)
160 
(141)
(39)
Comprehensive income attributable to Aon shareholders
38 
424 
838 
784 
Consolidating Adjustments [Member]
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
Net income
(449)
(372)
(1,487)
(1,403)
Less: Net income attributable to noncontrolling interests
Net income attributable to Aon shareholders
(449)
(372)
(1,487)
(1,403)
Change in fair value of investments
Change in fair value of derivatives
Foreign currency translation adjustments
Post-retirement benefit obligation
Total other comprehensive (loss) income
Equity in other comprehensive loss of subsidiaries, net of tax
585 
(327)
286 
65 
Less: Other comprehensive income (loss) attributable to noncontrolling interests
Total other comprehensive (loss) income attributable to Aon shareholders
585 
(327)
286 
65 
Comprehensive income attributable to Aon shareholders
$ 136 
$ (699)
$ (1,201)
$ (1,338)
Guarantee of Registered Securities - Condensed Consolidating Statement of Financial Position (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2014
Dec. 31, 2013
Sep. 30, 2013
Dec. 31, 2012
CURRENT ASSETS :
 
 
 
 
Cash and cash equivalents
$ 382 
$ 477 
$ 369 
$ 291 
Short-term investments
217 
523 
 
 
Receivables, net
2,630 
2,896 
 
 
Fiduciary assets
10,815 
11,871 
 
 
Intercompany receivables
 
 
Other current assets
711 
563 
 
 
Total Current Assets
14,755 
16,330 
 
 
Goodwill
9,026 
8,997 
 
 
Intangible assets, net
2,612 
2,578 
 
 
Fixed assets, net
760 
791 
 
 
Investments
143 
132 
 
 
Intercompany receivables
 
 
Other non-current assets
1,531 
1,423 
 
 
Investment in subsidiary
 
 
TOTAL ASSETS
28,827 
30,251 
 
 
CURRENT LIABILITIES
 
 
 
 
Fiduciary liabilities
10,815 
11,871 
 
 
Short-term debt and current portion of long-term debt
660 
703 
 
 
Accounts payable and accrued liabilities
1,528 
1,931 
 
 
Intercompany payables
 
 
Other current liabilities
853 
906 
 
 
Total Current Liabilities
13,856 
15,411 
 
 
Long-term debt
4,840 
3,686 
 
 
Pension, other post-retirement and other post-employment liabilities
1,437 
1,607 
 
 
Intercompany payables
 
 
Other non-current liabilities
1,422 
1,352 
 
 
TOTAL LIABILITIES
21,555 
22,056 
 
 
TOTAL AON SHAREHOLDERS' EQUITY
7,215 
8,145 
 
 
Noncontrolling interests
57 
50 
 
 
TOTAL EQUITY
7,272 
8,195 
 
 
TOTAL LIABILITIES AND EQUITY
28,827 
30,251 
 
 
Aon plc [Member]
 
 
 
 
CURRENT ASSETS :
 
 
 
 
Cash and cash equivalents
118 
131 
Short-term investments
 
 
Receivables, net
 
 
Fiduciary assets
 
 
Intercompany receivables
321 
186 
 
 
Other current assets
 
 
Total Current Assets
322 
186 
 
 
Goodwill
 
 
Intangible assets, net
 
 
Fixed assets, net
 
 
Investments
 
 
Intercompany receivables
7,408 
7,166 
 
 
Other non-current assets
169 
146 
 
 
Investment in subsidiary
5,752 
4,607 
 
 
TOTAL ASSETS
13,651 
12,105 
 
 
CURRENT LIABILITIES
 
 
 
 
Fiduciary liabilities
 
 
Short-term debt and current portion of long-term debt
 
 
Accounts payable and accrued liabilities
1,683 
1,036 
 
 
Intercompany payables
15 
 
 
Other current liabilities
72 
12 
 
 
Total Current Liabilities
1,763 
1,063 
 
 
Long-term debt
2,568 
792 
 
 
Pension, other post-retirement and other post-employment liabilities
 
 
Intercompany payables
2,100 
2,100 
 
 
Other non-current liabilities
 
 
TOTAL LIABILITIES
6,436 
3,960 
 
 
TOTAL AON SHAREHOLDERS' EQUITY
7,215 
8,145 
 
 
Noncontrolling interests
 
 
TOTAL EQUITY
7,215 
8,145 
 
 
TOTAL LIABILITIES AND EQUITY
13,651 
12,105 
 
 
Aon Corporation [Member]
 
 
 
 
CURRENT ASSETS :
 
 
 
 
Cash and cash equivalents
568 
247 
291 
199 
Short-term investments
59 
163 
 
 
Receivables, net
 
 
Fiduciary assets
 
 
Intercompany receivables
2,696 
3,503 
 
 
Other current assets
205 
69 
 
 
Total Current Assets
3,528 
3,986 
 
 
Goodwill
 
 
Intangible assets, net
 
 
Fixed assets, net
 
 
Investments
79 
57 
 
 
Intercompany receivables
2,162 
2,178 
 
 
Other non-current assets
498 
560 
 
 
Investment in subsidiary
16,469 
11,694 
 
 
TOTAL ASSETS
22,736 
18,475 
 
 
CURRENT LIABILITIES
 
 
 
 
Fiduciary liabilities
 
 
Short-term debt and current portion of long-term debt
649 
 
 
Accounts payable and accrued liabilities
34 
62 
 
 
Intercompany payables
9,258 
5,449 
 
 
Other current liabilities
47 
47 
 
 
Total Current Liabilities
9,988 
5,558 
 
 
Long-term debt
1,917 
2,512 
 
 
Pension, other post-retirement and other post-employment liabilities
854 
925 
 
 
Intercompany payables
7,277 
7,267 
 
 
Other non-current liabilities
108 
159 
 
 
TOTAL LIABILITIES
20,144 
16,421 
 
 
TOTAL AON SHAREHOLDERS' EQUITY
2,592 
2,054 
 
 
Noncontrolling interests
 
 
TOTAL EQUITY
2,592 
2,054 
 
 
TOTAL LIABILITIES AND EQUITY
22,736 
18,475 
 
 
Other Non-Guarantor Subsidiaries [Member]
 
 
 
 
CURRENT ASSETS :
 
 
 
 
Cash and cash equivalents
1,444 
1,246 
Short-term investments
158 
360 
 
 
Receivables, net
2,633 
2,892 
 
 
Fiduciary assets
10,815 
11,871 
 
 
Intercompany receivables
9,419 
5,452 
 
 
Other current assets
669 
513 
 
 
Total Current Assets
25,138 
22,334 
 
 
Goodwill
9,026 
8,997 
 
 
Intangible assets, net
2,612 
2,578 
 
 
Fixed assets, net
760 
791 
 
 
Investments
64 
75 
 
 
Intercompany receivables
2,211 
2,201 
 
 
Other non-current assets
1,550 
1,421 
 
 
Investment in subsidiary
 
 
TOTAL ASSETS
41,361 
38,397 
 
 
CURRENT LIABILITIES
 
 
 
 
Fiduciary liabilities
10,815 
11,871 
 
 
Short-term debt and current portion of long-term debt
11 
707 
 
 
Accounts payable and accrued liabilities
1,444 
1,849 
 
 
Intercompany payables
3,170 
3,677 
 
 
Other current liabilities
898 
866 
 
 
Total Current Liabilities
16,338 
18,970 
 
 
Long-term debt
355 
378 
 
 
Pension, other post-retirement and other post-employment liabilities
583 
682 
 
 
Intercompany payables
2,404 
2,178 
 
 
Other non-current liabilities
1,995 
1,892 
 
 
TOTAL LIABILITIES
21,675 
24,100 
 
 
TOTAL AON SHAREHOLDERS' EQUITY
19,629 
14,247 
 
 
Noncontrolling interests
57 
50 
 
 
TOTAL EQUITY
19,686 
14,297 
 
 
TOTAL LIABILITIES AND EQUITY
41,361 
38,397 
 
 
Consolidating Adjustments [Member]
 
 
 
 
CURRENT ASSETS :
 
 
 
 
Cash and cash equivalents
(1,630)
(1,016)
(40)
(39)
Short-term investments
 
 
Receivables, net
(3)
 
 
Fiduciary assets
 
 
Intercompany receivables
(12,436)
(9,141)
 
 
Other current assets
(164)
(19)
 
 
Total Current Assets
(14,233)
(10,176)
 
 
Goodwill
 
 
Intangible assets, net
 
 
Fixed assets, net
 
 
Investments
 
 
Intercompany receivables
(11,781)
(11,545)
 
 
Other non-current assets
(686)
(704)
 
 
Investment in subsidiary
(22,221)
(16,301)
 
 
TOTAL ASSETS
(48,921)
(38,726)
 
 
CURRENT LIABILITIES
 
 
 
 
Fiduciary liabilities
 
 
Short-term debt and current portion of long-term debt
(4)
 
 
Accounts payable and accrued liabilities
(1,633)
(1,016)
 
 
Intercompany payables
(12,436)
(9,141)
 
 
Other current liabilities
(164)
(19)
 
 
Total Current Liabilities
(14,233)
(10,180)
 
 
Long-term debt
 
 
Pension, other post-retirement and other post-employment liabilities
 
 
Intercompany payables
(11,781)
(11,545)
 
 
Other non-current liabilities
(686)
(704)
 
 
TOTAL LIABILITIES
(26,700)
(22,425)
 
 
TOTAL AON SHAREHOLDERS' EQUITY
(22,221)
(16,301)
 
 
Noncontrolling interests
 
 
TOTAL EQUITY
(22,221)
(16,301)
 
 
TOTAL LIABILITIES AND EQUITY
$ (48,921)
$ (38,726)
 
 
Guarantee of Registered Securities - Condensed Consolidating Statement of Cash Flows (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES
 
 
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES
$ 883 
$ 984 
CASH FLOWS FROM INVESTING ACTIVITIES
 
 
Proceeds from sale of long-term investments
51 
81 
Purchases of long-term investments
(19)
(13)
Net sales of short-term investments - non-fiduciary
301 
(13)
Acquisition of businesses, net of cash acquired
(464)
(26)
Proceeds from sale of businesses
48 
Capital expenditures
(179)
(174)
CASH USED FOR INVESTING ACTIVITIES
(262)
(139)
CASH FLOWS FROM FINANCING ACTIVITIES
 
 
Share repurchase
(1,750)
(1,025)
Advances (to) from affiliates
Issuance of shares for employee benefit plans
58 
84 
Issuance of debt
4,255 
4,270 
Repayment of debt
(3,073)
(3,870)
Cash dividends to shareholders
(201)
(159)
Purchase of shares from noncontrolling interests
(6)
Dividends paid to noncontrolling interests
(18)
(13)
Proceeds from sale-leaseback
25 
CASH USED FOR FINANCING ACTIVITIES
(703)
(719)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
(13)
(48)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
(95)
78 
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
477 
291 
CASH AND CASH EQUIVALENTS AT END OF PERIOD
382 
369 
Aon plc [Member]
 
 
CASH FLOWS FROM OPERATING ACTIVITIES
 
 
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES
309 
(14)
CASH FLOWS FROM INVESTING ACTIVITIES
 
 
Proceeds from sale of long-term investments
Purchases of long-term investments
Net sales of short-term investments - non-fiduciary
Acquisition of businesses, net of cash acquired
Proceeds from sale of businesses
Capital expenditures
CASH USED FOR INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
 
 
Share repurchase
(1,750)
(1,025)
Advances (to) from affiliates
(253)
405 
Issuance of shares for employee benefit plans
58 
84 
Issuance of debt
2,714 
1,145 
Repayment of debt
(877)
(449)
Cash dividends to shareholders
(201)
(159)
Purchase of shares from noncontrolling interests
Dividends paid to noncontrolling interests
Proceeds from sale-leaseback
 
CASH USED FOR FINANCING ACTIVITIES
(309)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
(13)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
131 
CASH AND CASH EQUIVALENTS AT END OF PERIOD
118 
Aon Corporation [Member]
 
 
CASH FLOWS FROM OPERATING ACTIVITIES
 
 
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES
(348)
(195)
CASH FLOWS FROM INVESTING ACTIVITIES
 
 
Proceeds from sale of long-term investments
39 
Purchases of long-term investments
(19)
(13)
Net sales of short-term investments - non-fiduciary
103 
(35)
Acquisition of businesses, net of cash acquired
Proceeds from sale of businesses
Capital expenditures
CASH USED FOR INVESTING ACTIVITIES
123 
(40)
CASH FLOWS FROM FINANCING ACTIVITIES
 
 
Share repurchase
Advances (to) from affiliates
496 
610 
Issuance of shares for employee benefit plans
Issuance of debt
1,541 
2,894 
Repayment of debt
(1,491)
(3,177)
Cash dividends to shareholders
Purchase of shares from noncontrolling interests
Dividends paid to noncontrolling interests
Proceeds from sale-leaseback
 
CASH USED FOR FINANCING ACTIVITIES
546 
327 
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
321 
92 
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
247 
199 
CASH AND CASH EQUIVALENTS AT END OF PERIOD
568 
291 
Other Non-Guarantor Subsidiaries [Member]
 
 
CASH FLOWS FROM OPERATING ACTIVITIES
 
 
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES
922 
1,193 
CASH FLOWS FROM INVESTING ACTIVITIES
 
 
Proceeds from sale of long-term investments
12 
73 
Purchases of long-term investments
Net sales of short-term investments - non-fiduciary
198 
22 
Acquisition of businesses, net of cash acquired
(464)
(26)
Proceeds from sale of businesses
48 
Capital expenditures
(179)
(174)
CASH USED FOR INVESTING ACTIVITIES
(385)
(99)
CASH FLOWS FROM FINANCING ACTIVITIES
 
 
Share repurchase
Advances (to) from affiliates
371 
(1,014)
Issuance of shares for employee benefit plans
Issuance of debt
231 
Repayment of debt
(705)
(244)
Cash dividends to shareholders
Purchase of shares from noncontrolling interests
(6)
Dividends paid to noncontrolling interests
(18)
(13)
Proceeds from sale-leaseback
25 
 
CASH USED FOR FINANCING ACTIVITIES
(326)
(1,046)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
(13)
(48)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
198 
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
1,246 
CASH AND CASH EQUIVALENTS AT END OF PERIOD
1,444 
Consolidating Adjustments [Member]
 
 
CASH FLOWS FROM OPERATING ACTIVITIES
 
 
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
 
 
Proceeds from sale of long-term investments
Purchases of long-term investments
Net sales of short-term investments - non-fiduciary
Acquisition of businesses, net of cash acquired
Proceeds from sale of businesses
Capital expenditures
CASH USED FOR INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
 
 
Share repurchase
Advances (to) from affiliates
(614)
(1)
Issuance of shares for employee benefit plans
Issuance of debt
Repayment of debt
Cash dividends to shareholders
Purchase of shares from noncontrolling interests
Dividends paid to noncontrolling interests
Proceeds from sale-leaseback
 
CASH USED FOR FINANCING ACTIVITIES
(614)
(1)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
(614)
(1)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
(1,016)
(39)
CASH AND CASH EQUIVALENTS AT END OF PERIOD
$ (1,630)
$ (40)