LONDON, Feb. 2, 2018 /PRNewswire/ --
Fourth Quarter Key Metrics From Continuing Operations and
Highlights
- Reported revenue increased 10% to $2.9
billion with organic revenue growth of 6%
- Operating margin decreased to 16.8%, and operating margin,
adjusted for certain items, increased to 27.5%
- EPS decreased to $0.04, and EPS,
adjusted for certain items, increased to $2.35
- Repurchased 3.5 million Class A Ordinary Shares for
approximately $500 million
- The Company closed its acquisition of the Townsend Group, a
leading global real estate and investment management firm, bringing
greater depth of expertise in real estate assets to Aon's
distribution scale and increasing Aon's ability to provide
alternative private market assets
- The Company closed its acquisition of Unirobe Meeùs Groep,
strengthening Aon's position as a top leading insurance broker and
risk advisor in all business-to-business market segments in
the Netherlands
Full Year Key Metrics From Continuing Operations and
Highlights
- Reported revenue increased 6% to $10.0
billion with organic revenue growth of 4%
- Operating margin decreased to 9.8%, and operating margin,
adjusted for certain items, increased to 23.4%
- EPS decreased to $1.53, and EPS,
adjusted for certain items, increased to $6.52
- Cash flow from operations was $669
million and free cash flow was $486
million
- Closed more than $1.0 billion of
mergers and acquisitions in high-growth, high-margin areas across
the portfolio
- Repurchased 18.0 million Class A Ordinary Shares for
approximately $2.4 billion
Aon plc (NYSE: AON) today reported results for the three and
twelve months ended December 31, 2017.
Net income from continuing operations attributable to Aon
shareholders in the fourth quarter was $10 million, or $0.04 per share, compared to $377 million, or $1.40 per share, in the prior year period. Net
income per share from continuing operations, adjusted for certain
items, increased 18% to $2.35,
including $19 million, or
$0.06, of other expenses primarily
related to a loss on the sale of certain businesses and an
unfavorable impact of exchange rates on the remeasurement of assets
and liabilities in non-functional currencies, compared to
$2.00 in the prior year period.
Certain items that impacted fourth quarter results and comparisons
with the prior year period are detailed in the "Reconciliation of
Non-GAAP Measures - Operating Income and Diluted Earnings Per Share
from Continuing Operations" on page 11 of this press release.
"Our fourth quarter results reflect a strong finish to a solid
year, highlighted by 6% organic growth, substantial operational
improvement driven by our Aon United operating model initiative,
and effective capital management, highlighted by the return of a
record amount of capital to shareholders in 2017," said
Greg Case, President and Chief
Executive Officer. "The long-term growth profile of our firm
is increasing, driven by an unmatched level of investment and an
industry-leading portfolio focused around our highest value
solutions and our clients' greatest needs. Combined with core
operational performance and savings from the Aon United operating
model, we believe we are on track to exceed $7.97 of adjusted earnings per share in 2018, and
deliver double-digit free cash flow growth over the long-term."
FOURTH QUARTER 2017 FINANCIAL SUMMARY
The fourth
quarter financial results discussed herein represent performance
from continuing operations.
Total revenue in the fourth quarter increased 10%
to $2.9 billion compared to the prior
year period driven primarily by 6% organic revenue growth, a 2%
increase related to acquisitions, net of divestitures, and a 2%
favorable impact if the company were to hold foreign currency
exchange rates constant, translating prior year period results at
current period foreign exchange rates ("foreign currency
translation").
Total operating expenses in the fourth quarter increased
11% to $2.4 billion compared to the
prior year period driven primarily by $96
million of restructuring costs, a $75 million increase in expenses related to
acquisitions, net of divestitures, $54
million of accelerated amortization related to tradenames, a
$42 million unfavorable impact from
foreign currency translation, and an increase in expense associated
with 6% organic revenue growth, partially offset by
$56 million of savings related to
restructuring and other operational improvement initiatives, a
$30 million decrease in expenses
related to certain pension settlements, a $14 million decrease in expected costs related to
regulatory and compliance matters, and approximately a $12 million decrease in transaction related
costs.
Restructuring expenses were $96
million in the fourth quarter, primarily driven by workforce
reductions and other general initiatives. Upon evaluating the
current progress of the restructuring program and further
opportunities to improve our Aon United operating model, the
Company has increased its estimated investment from $900 million to $1,175
million in total cash over a three-year period, in addition
to incurring $50 million of non-cash
charges. This includes an estimated investment of $975 million of cash restructuring charges and
$200 million of incremental capital
expenditures. To date, the Company has incurred $497 million, or 48% of the total estimated
restructuring charges. An analysis of restructuring and related
costs by type is detailed on page 14 of this press release.
Restructuring savings in the fourth quarter related to
restructuring and other operational improvement initiatives were
$56 million, before any potential
reinvestment. Before any potential reinvestment of savings,
restructuring and other operational improvement initiatives are now
expected to deliver run-rate savings of $450
million annually in 2019, an increase of $50 million from the original estimated savings
of $400 million. To date, the Company
has achieved $165 million, or 37%, of
the total estimated annualized savings.
Foreign currency exchange rates in the fourth quarter had
a $0.06 per share, or $16 million, favorable impact on U.S. GAAP net
income, and a $0.06 per share, or
$17 million, favorable impact on
adjusted net income if the Company were to translate prior year
quarter results at current quarter foreign exchange rates.
Effective tax rate used in the U.S. GAAP financial
statements for the fourth quarter was 95.8%, including $345 million of additional tax expense as a
result of the provisional estimate of the impact of U.S. tax reform
based on Aon's initial analysis of the Tax Cuts and Jobs Act,
compared to the prior year quarter of 5.2%. After adjusting to
exclude the provisional estimate of the impact of U.S. tax reform
based on Aon's initial analysis of the Tax Cuts and Jobs Act, as
well as the applicable tax impact associated with estimated
restructuring expenses, accelerated tradename amortization,
impairment charges, regulatory and compliance provisions, and
non-cash pension expenses, the adjusted effective tax rate for the
fourth quarter of 2017 was 15.5% compared to 12.0% in the prior
year quarter. Both periods benefited from a net favorable impact of
certain discrete items. These adjustments are discussed in the
"Reconciliation of Non-GAAP Measures - Operating Income and Diluted
Earnings Per Share from Continuing Operations" on page 11 of this
press release.
Additionally, as a result of the initial analysis of the Tax
Cuts and Jobs Act, the Company expects that U.S. tax reform will
have modest upward pressure on its effective tax rate. Based
on initial interpretation of changes in legislation, current
assumptions of geographic mix of income and the potential impact of
discrete items, we believe the best estimate of our full-year
non-GAAP global effective tax rate to be approximately 19%.
Weighted average diluted shares outstanding decreased to
254.5 million in the fourth quarter compared to 268.3 million in
the prior year period. The Company repurchased 3.5 million
Class A Ordinary Shares for approximately $500 million in the fourth quarter. As of
December 31, 2017, the Company had
$5.4 billion of remaining
authorization under its share repurchase program.
FOURTH QUARTER 2017 CASH FLOW SUMMARY
Cash flow
from operations for 2017 decreased 63%, or $1,160 million, to $669
million compared to the prior year period, primarily
reflecting an estimated $940 million
of cash tax payments associated with the divestiture of our
outsourcing businesses in the second quarter ("divested business"),
$280 million of cash restructuring
charges, and $45 million of
transaction costs related to the divested business, partially
offset by operational improvement.
Free cash flow, defined as cash flow from operations less
capital expenditures, decreased 71%, or $1,187 million, to $486
million compared to the prior year period, reflecting a
decline in cash flow from operations and a $27 million increase in capital expenditures,
including investments in our operating model. A
reconciliation of free cash flow to cash flow from operations can
be found on the "Reconciliation of Non-GAAP Measures - Organic
Revenue and Free Cash Flow" on page 10 of this press release.
FOURTH QUARTER 2017 REVENUE REVIEW
The fourth quarter
revenue reviews provided below include supplemental information
related to organic revenue, which is a non-GAAP measure that is
described in detail in "Reconciliation of Non-GAAP Measures -
Organic Revenue and Free Cash Flow" on page 10 of this press
release.
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
Dec 31,
2017
|
|
Dec 31,
2016
|
|
%
Change
|
|
Less:
Currency
Impact
|
|
Less:
Fiduciary
Investment
Income
|
|
Less:
Acquisitions,
Divestitures &
Other
|
|
Organic
Revenue
Growth
|
Commercial Risk
Solutions
|
|
$
|
1,226
|
|
$
|
1,094
|
|
12%
|
|
3%
|
|
—%
|
|
4%
|
|
5%
|
Reinsurance
Solutions
|
|
359
|
|
329
|
|
9
|
|
1
|
|
—
|
|
—
|
|
8
|
Retirement
Solutions
|
|
489
|
|
441
|
|
11
|
|
3
|
|
—
|
|
4
|
|
4
|
Health
Solutions
|
|
538
|
|
532
|
|
1
|
|
1
|
|
—
|
|
(6)
|
|
6
|
Data & Analytic
Services
|
|
298
|
|
256
|
|
16
|
|
2
|
|
—
|
|
2
|
|
12
|
Elimination
|
|
(1)
|
|
(2)
|
|
NA
|
|
NA
|
|
NA
|
|
NA
|
|
NA
|
Total
revenue
|
|
$
|
2,909
|
|
$
|
2,650
|
|
10%
|
|
2%
|
|
—%
|
|
2%
|
|
6%
|
Total organic revenue increased 6% compared to prior year
period, reflecting organic growth of 5% or greater in four of the
five revenue lines, highlighted by double-digit growth in Data
& Analytic Services.
Commercial Risk Solutions organic revenue increased 5%
compared to the prior year period driven primarily by strong growth
in U.S. retail and solid growth internationally led by the
Asia and Pacific regions, as well
as new client wins in the captive management business.
Reinsurance Solutions organic revenue increased 8%
compared to the prior year period driven by strong growth across
all major product lines, highlighted by particular strength in
treaty placements, reflecting net new business generation and
growth in both facultative placements and capital markets
transactions.
Retirement Solutions organic revenue increased 4%
compared to the prior year period driven by growth across every
major business and geography, with particular strength in our
Talent, Rewards, and Performance practice primarily in Rewards,
assessment services, and in investment consulting, primarily for
delegated investment management.
Health Solutions organic revenue increased 6% compared to
the prior year period driven by strong growth globally in health
& benefits brokerage, reflecting continued strength both in the
U.S. and internationally. The prior year period benefited from
certain project-related work in the retiree exchange business
Data & Analytic Services organic revenue increased
12% compared to the prior year period driven by continued strength
across U.S. Affinity, as well as increased claims activity in the
flood business following certain catastrophic events earlier in the
year.
FOURTH QUARTER 2017 EXPENSE REVIEW
|
|
Three Months
Ended
|
|
|
|
|
(millions)
|
|
Dec 31,
2017
|
|
Dec 31,
2016
|
|
$
Change
|
|
%
Change
|
Expenses
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
$
|
1,752
|
|
$
|
1,646
|
|
$
|
106
|
|
6%
|
Information
technology
|
|
124
|
|
105
|
|
19
|
|
18
|
Premises
|
|
89
|
|
86
|
|
3
|
|
3
|
Depreciation of fixed
assets
|
|
39
|
|
44
|
|
(5)
|
|
(11)
|
Amortization and
impairment of intangible assets
|
|
100
|
|
40
|
|
60
|
|
150
|
Other general
expenses
|
|
316
|
|
266
|
|
50
|
|
19
|
Total operating
expenses
|
|
$
|
2,420
|
|
$
|
2,187
|
|
$
|
233
|
|
11%
|
Compensation and benefits expense increased 6%, or
$106 million, compared to the prior
year period due primarily to a $44
million increase in expenses related to acquisitions, net of
divestitures, $42 million of
restructuring costs, a $33 million
unfavorable impact from foreign currency translation, and an
increase in expense associated with 6% organic revenue
growth, partially offset by $42
million of savings related to restructuring and other
operational improvement initiatives and a $30 million decrease in expenses related to
certain pension settlements.
Information technology expense increased 18%, or
$19 million, compared to the prior
year period due primarily to $11
million of restructuring costs, a $4
million increase in expenses associated with acquisitions,
net of divestitures, as well as investments in future growth,
partially offset by $8 million of
savings related to restructuring and other operational improvement
initiatives.
Premises expense increased 3%, or $3 million, compared to the prior year period due
primarily to a $3 million unfavorable
impact from foreign currency translation and a $2 million increase in expenses related to
acquisitions, net of divestitures, partially offset by $1 million of savings related to restructuring
and other operational improvement initiatives.
Depreciation of fixed assets expense decreased 11%, or
$5 million, compared to the prior
year period primarily due to $1
million of savings related to restructuring and other
operational improvement initiatives, as well as a decrease in
overall expense as we continue to optimize our real estate and IT
portfolio.
Amortization and impairment of intangible assets expense
increased 150%, or $60 million,
compared to the prior year period primarily due to $54 million of accelerated amortization related
to tradenames and an increase from acquisitions, net of
divestitures.
Other general expenses increased 19%, or
$50 million, compared to the prior
year period primarily due to $43
million of restructuring costs, a $22
million increase in expenses associated with acquisitions,
net of divestitures, and an increase in expense associated with 6%
organic revenue growth, partially offset by a $14 million decrease in expected costs related to
regulatory and compliance matters and a $12
million net decrease in transaction related costs.
FOURTH QUARTER 2017 INCOME SUMMARY
Certain noteworthy
items impacted operating income and operating margins in the fourth
quarters of 2017 and 2016. The fourth quarter information
provided below includes supplemental information related to
adjusted operating income and adjusted operating margin, which are
non-GAAP measures that are described in detail in "Reconciliation
of Non-GAAP Measures - Operating Income and Diluted Earnings Per
Share from Continuing Operations" on page 11 of this press
release.
|
|
Three Months Ended
|
|
|
(millions)
|
|
Dec
31,
2017
|
|
Dec 31,
2016
|
|
%
Change
|
Revenue
|
|
$
|
2,909
|
|
$
|
2,650
|
|
10%
|
Expenses
|
|
|
2,420
|
|
|
2,187
|
|
11
|
Operating income -
as reported
|
|
$
|
489
|
|
$
|
463
|
|
6%
|
Operating margin -
as reported
|
|
|
16.8%
|
|
|
17.5%
|
|
|
Operating income -
as adjusted
|
|
$
|
799
|
|
$
|
676
|
|
18%
|
Operating margin -
as adjusted
|
|
|
27.5%
|
|
|
25.5%
|
|
|
Operating income increased 6%, or $26
million, compared to the prior year period. Adjusting for
certain items detailed on page 11 of this press release, operating
income increased 18%, or $123
million, and operating margin increased 200 basis points to
27.5%, each compared to the prior year period. The increase
in adjusted operating margin was driven primarily by strong organic
revenue growth of 6%, core operational improvement, and
$56 million of savings from
restructuring and other operational improvement initiatives,
partially offset by $3 million, or
-10 basis points, of transaction costs related to recent
acquisitions.
|
|
Three Months Ended
|
|
|
(millions)
|
|
Dec 31,
2017
|
|
Dec 31,
2016
|
|
%
Change
|
Operating income -
as reported
|
|
$
|
489
|
|
$
|
463
|
|
6%
|
Interest
income
|
|
|
7
|
|
|
3
|
|
133
|
Interest
expense
|
|
|
(71)
|
|
|
(70)
|
|
1
|
Other income
(expense)
|
|
|
(19)
|
|
|
9
|
|
(311)
|
Income from
continuing operations before income taxes
|
|
$
|
406
|
|
$
|
405
|
|
—%
|
Interest income increased $4
million to $7 million compared
to the prior year period primarily due to additional income earned
on the remaining proceeds from the sale of the divested business.
Interest expense was similar to the prior year period.
Other expense was $19 million
and primarily included a loss on the sale of certain businesses and
losses due to the unfavorable impact of exchange rates on the
remeasurement of assets and liabilities in non-functional
currencies. The prior year period primarily includes net gains due
to the favorable impact of exchange rates on the remeasurement of
assets and liabilities in non-functional currencies.
DISCONTINUED OPERATIONS
Net loss from
discontinued operations was $(29)
million, or $(0.11) per share,
compared to net income of $75
million, or $0.28 per share,
in the prior year period. Net loss from discontinued operations,
adjusted for certain items, was $(4)
million, or $(0.01) per share,
compared to net income of $100
million, or $0.37 in the prior
year period. Certain items that impacted fourth quarter results and
comparisons with the prior year period are detailed in
"Reconciliation of Non-GAAP Measures - Operating Income and Diluted
Earnings Per Share from Continuing Operations" on page 11 on this
press release.
2017 FULL YEAR SUMMARY
Total revenue for 2017
increased 6% to $10.0 billion
compared to the prior year period driven by 4% organic revenue
growth and a 2% increase related to acquisitions, net of
divestitures.
Net income from continuing operations was $435 million, or $1.53 per share, compared to $1.3 billion, or $4.51 per share, in the prior year. Net income
per share from continuing operations, adjusted for certain items,
increased 17% to $6.52, compared to
$5.58 in the prior year. Certain
items that impacted full year results and comparisons against the
prior year are detailed in the "Reconciliation of Non-GAAP Measures
- Operating Income and Diluted Earnings Per Share from Continuing
Operations" on page 11 of this press release.
During 2017, the Company repurchased approximately 18.0 million
Class A Ordinary Shares for a record $2.4 billion at an average price of $133.67 per share.
PRO FORMA HISTORICAL FINANCIALS
In the first quarter
of 2018, Aon will adopt new accounting guidance related to the
treatment of revenue from contracts with customers that will be
applied prospectively on its U.S. GAAP financial statements and
therefore comparable periods will not be restated. In the
same quarter, Aon will adopt new accounting guidance related to the
presentation of costs associated with pensions and other
postretirement benefits that will be applied retrospectively for
its U.S. GAAP financial statements and therefore comparable periods
will be restated. On pages 15 through 21 of this press
release, the Company has included unaudited pro forma consolidated
results that present the retrospective impact of each of these
standards on fiscal years 2016 and 2017.
Conference Call, Presentation Slides and Webcast
Details
The Company will host a conference call on Friday,
February 2, 2018 at 7:30 a.m., central
time. Interested parties can listen to the conference
call via a live audio webcast and view the presentation slides at
www.aon.com.
About Aon
Aon plc (NYSE:AON) is a leading global professional services
firm providing a broad range of risk, retirement and health
solutions. Our 50,000 colleagues in 120 countries empower results
for clients by using proprietary data and analytics to deliver
insights that reduce volatility and improve performance.
Safe Harbor Statement
This communication contain certain statements related to future
results, or states our intentions, beliefs and expectations or
predictions for the future which are forward-looking statements as
that term is defined in the Private Securities Litigation Reform
Act of 1995. Forward-looking statements relate to expectations or
forecasts of future events. They use words such as "anticipate,"
"believe," "estimate," "expect," "forecast," "project," "intend,"
"plan," "probably," "potential," "looking forward" and other
similar terms, and future or conditional tense verbs like "could,"
"may," "might," "should," "will" and "would." You can also identify
forward-looking statements by the fact that they do not relate
strictly to historical or current facts. For example, we may use
forward-looking statements when addressing topics such as: market
and industry conditions, including competitive and pricing trends;
changes in our business strategies and methods of generating
revenue; the development and performance of our services and
products; changes in the composition or level of our revenues; our
cost structure and the outcome of cost-saving or restructuring
initiatives; the outcome of contingencies; dividend policy; the
expected impact of acquisitions and dispositions; pension
obligations; cash flow and liquidity; expected effective tax rate;
future actions by regulators; and the impact of changes in
accounting rules. These forward-looking statements are subject to
certain risks and uncertainties that could cause actual results to
differ materially from either historical or anticipated results
depending on a variety of factors.
The following factors, among others, could cause actual results
to differ from those set forth in the forward looking
statements: general economic and political conditions in
different countries in which Aon does business around the world;
changes in the competitive environment; fluctuations in exchange
and interest rates that could influence revenue and expense;
changes in global equity and fixed income markets that could affect
the return on invested assets; changes in the funding status of
Aon's various defined benefit pension plans and the impact of any
increased pension funding resulting from those changes; the level
of Aon's debt limiting financial flexibility; rating agency actions
that could affect Aon's ability to borrow funds; the effect of the
change in global headquarters and jurisdiction of incorporation,
including differences in the anticipated benefits; changes in
estimates or assumptions on our financial statements; limits on
Aon's subsidiaries to make dividend and other payments to Aon; the
impact of lawsuits and other contingent liabilities and loss
contingencies arising from errors and omissions and other claims
against Aon; the impact of, and potential challenges in complying
with, legislation and regulation in the jurisdictions in which Aon
operates, particularly given the global scope of Aon's
businesses and the possibility of conflicting regulatory
requirements across jurisdictions in which Aon does business; the
impact of any investigations brought by regulatory authorities in
the U.S., U.K. and other countries; the impact of any inquiries
relating to compliance with the U.S. Foreign Corrupt Practices Act
and non-U.S. anti-corruption laws and with U.S. and non-U.S. trade
sanctions regimes; failure to protect intellectual property rights
or allegations that we infringe on the intellectual property rights
of others; the effects of English law on our operating flexibility
and the enforcement of judgments against Aon; the failure to retain
and attract qualified personnel; international risks associated
with Aon's global operations; the effect or natural or man-made
disasters; the potential of a system or network breach or
disruption resulting in operational interruption or improper
disclosure of personal data; Aon's ability to develop and implement
new technology; the damage to our reputation among clients, markets
or third parties; the actions taken by third parties that preform
aspects of our business operations and client services; the
extent to which Aon manages certain risks created in connection
with the various services, including fiduciary and investments and
other advisory services and business process outsourcing services,
among others, that Aon currently provides, or will provide in the
future, to clients; Aon's ability to grow, develop and integrate
companies that it acquires or new lines of business; changes in
commercial property and casualty markets, commercial premium rates
or methods of compensation; changes in the health care system or
our relationships with insurance carriers; and Aon's ability to
implement initiatives intended to yield cost savings, and the
ability to achieve those cost savings.
Any or all of Aon's forward-looking statements may turn out to
be inaccurate, and there are no guarantees about Aon's
performance. The factors identified above are not
exhaustive. Aon and its subsidiaries operate in a dynamic
business environment in which new risks may emerge
frequently. Further information concerning Aon and its
businesses, including factors that potentially could materially
affect Aon's financial results, is contained in Aon's filings with
the SEC. See Aon's Annual Report on
Form 10-K for the year ended December 31,
2016 and its Quarterly Reports on Form 10-Q for the quarters
ended March 31, 2017, June 30, 2017, and September 30, 2017 for a further discussion of
these and other risks and uncertainties applicable to Aon's
businesses. These factors may be revised or supplemented in
subsequent reports. Aon is under no obligation, and expressly
disclaims any obligation, to update or alter any forward-looking
statement that it may make from time to time, whether as a result
of new information, future events or otherwise.
Explanation of Non-GAAP Measures
This communication includes supplemental information related to
organic revenue, free cash flow, adjusted operating margin,
adjusted earnings per share, and adjusted effective tax rate that
exclude the effects of intangible asset amortization, capital
expenditures, transaction costs and certain other noteworthy items
that affected results for the comparable periods. Organic
revenue excludes from reported revenues the impact of foreign
exchange, acquisitions, divestitures, transfers between business
units, fiduciary investment income, and reimbursable
expenses. The impact of foreign exchange is determined by
translating last year's revenue, expense or net income at this
year's foreign exchange rates. Reconciliations are provided
in the attached schedules. Supplemental organic revenue
information and additional measures that exclude the effects of the
restructuring charges and certain other items do not affect net
income or any other GAAP reported amounts. Free cash flow is
cash flow from operating activity less capital expenditures. The
effective tax rate, as adjusted, excludes the applicable tax impact
associated with the provisional estimate of U.S. tax reform based
on Aon's initial analysis of the Tax Cuts and Jobs Act and expenses
for legacy litigation. Management believes that these measures are
important to make meaningful period-to-period comparisons and that
this supplemental information is helpful to investors. They
should be viewed in addition to, not in lieu of, the Company's
Consolidated Financial Statements. Industry peers provide
similar supplemental information regarding their performance,
although they may not make identical adjustments.
Investor
Contact:
|
|
Media
Contact:
|
Investor
Relations
|
|
Donna
Mirandola
|
+1
312-381-3310
|
|
Vice President,
Global External Communications
|
investor.relations@aon.com
|
|
+1
312-381-1532
|
Aon
plc Consolidated Statements of Income
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Twelve Months
Ended
|
|
|
(millions,
except per share data)
|
|
Dec 31,
2017
|
|
Dec 31,
2016
|
|
%
Change
|
|
Dec 31,
2017
|
|
Dec 31,
2016
|
|
%
Change
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
$
|
2,909
|
|
$
|
2,650
|
|
10%
|
|
$
|
9,998
|
|
$
|
9,409
|
|
6%
|
Expenses
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
1,752
|
|
1,646
|
|
6
|
|
6,089
|
|
5,687
|
|
7
|
Information
technology
|
|
124
|
|
105
|
|
18
|
|
419
|
|
386
|
|
9
|
Premises
|
|
89
|
|
86
|
|
3
|
|
348
|
|
343
|
|
1
|
Depreciation of fixed
assets
|
|
39
|
|
44
|
|
(11)
|
|
187
|
|
162
|
|
15
|
Amortization and
impairment of intangible assets
|
|
100
|
|
40
|
|
150
|
|
704
|
|
157
|
|
348
|
Other general
expenses
|
|
316
|
|
266
|
|
19
|
|
1,272
|
|
1,036
|
|
23
|
Total operating
expenses
|
|
2,420
|
|
2,187
|
|
11
|
|
9,019
|
|
7,771
|
|
16
|
Operating
income
|
|
489
|
|
463
|
|
6
|
|
979
|
|
1,638
|
|
(40)
|
Interest
income
|
|
7
|
|
3
|
|
133
|
|
27
|
|
9
|
|
200
|
Interest
expense
|
|
(71)
|
|
(70)
|
|
1
|
|
(282)
|
|
(282)
|
|
—
|
Other income
(expense)
|
|
(19)
|
|
9
|
|
(311)
|
|
(39)
|
|
36
|
|
(208)
|
Income from
continuing operations before income taxes
|
|
406
|
|
405
|
|
—
|
|
685
|
|
1,401
|
|
(51)
|
Income taxes
(1)
|
|
389
|
|
21
|
|
1,752
|
|
250
|
|
148
|
|
69
|
Net income from
continuing operations
|
|
17
|
|
384
|
|
(96)
|
|
435
|
|
1,253
|
|
(65)
|
Income from
discontinued operations, net of tax (2)
|
|
(29)
|
|
75
|
|
(139)
|
|
828
|
|
177
|
|
368
|
Net
income
|
|
(12)
|
|
459
|
|
(103)
|
|
1,263
|
|
1,430
|
|
(12)
|
Less: Net income
attributable to noncontrolling interests
|
|
7
|
|
7
|
|
—
|
|
37
|
|
34
|
|
9
|
Net income
attributable to Aon shareholders
|
|
$
|
(19)
|
|
$
|
452
|
|
(104)%
|
|
$
|
1,226
|
|
$
|
1,396
|
|
(12)%
|
|
|
|
|
|
|
|
|
|
|
Basic net income
per share attributable to Aon shareholders
|
Continuing
operations
|
|
$
|
0.04
|
|
$
|
1.42
|
|
(97)%
|
|
$
|
1.54
|
|
$
|
4.55
|
|
(66)%
|
Discontinued
operations (3)
|
|
(0.12)
|
|
0.28
|
|
(143)
|
|
3.20
|
|
0.66
|
|
385
|
Net income
|
|
$
|
(0.08)
|
|
$
|
1.70
|
|
(105)%
|
|
$
|
4.74
|
|
$
|
5.21
|
|
(9)%
|
Diluted net income
per share attributable to Aon shareholders
|
Continuing
operations
|
|
$
|
0.04
|
|
$
|
1.40
|
|
(97)%
|
|
$
|
1.53
|
|
$
|
4.51
|
|
(66)%
|
Discontinued
operations (3)
|
|
(0.11)
|
|
0.28
|
|
(139)
|
|
3.17
|
|
0.65
|
|
388
|
Net income
|
|
$
|
(0.07)
|
|
$
|
1.68
|
|
(104)%
|
|
$
|
4.70
|
|
$
|
5.16
|
|
(9)%
|
Weighted average
ordinary shares outstanding - basic
|
|
251.3
|
|
265.2
|
|
(5)%
|
|
258.5
|
|
268.1
|
|
(4)%
|
Weighted average
ordinary shares outstanding - diluted
|
|
254.5
|
|
268.3
|
|
(5)%
|
|
260.7
|
|
270.3
|
|
(4)%
|
|
|
(1)
|
The effective tax
rate was 95.8% and 5.2% for the three months ended
December 31, 2017 and 2016, respectively, and 36.5% and 10.6%
for the twelve months ended December 31, 2017 and 2016,
respectively.
|
(2)
|
Income from
discontinued operations, net of tax, includes a $779 million gain
on the sale of the Divested Business.
|
(3)
|
Upon triggering held
for sale criteria in February 2017, Aon ceased depreciating and
amortizing all long-lived assets included in discontinued
operations. No depreciation or amortization expense was recognized
during the three months ended December 31, 2017. Included
within total operating expenses for the three months ended
December 31, 2016 was $17 million of depreciation of fixed
assets and $30 million of intangible asset amortization. Total
operating expenses for the twelve months ended December 31,
2017 and 2016 include, respectively, $8 million and $70 million of
depreciation of fixed assets and, respectively, $11 million and
$120 million of intangible asset amortization.
|
Aon
plc Reconciliation of Non-GAAP Measures - Organic
Revenue Growth and Free Cash Flow (Unaudited)
Organic Revenue Growth From Continuing Operations
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
(millions)
|
|
Dec 31,
2017
|
|
Dec 31,
2016
|
|
%
Change
|
|
Less:
Currency
Impact (1)
|
|
Less:
Fiduciary
Investment
Income (2)
|
|
Less:
Acquisitions,
Divestitures &
Other
|
|
Organic
Revenue
Growth (3)
|
Commercial Risk
Solutions
|
|
$
|
1,226
|
|
|
$
|
1,094
|
|
|
12%
|
|
3%
|
|
—%
|
|
4%
|
|
5%
|
Reinsurance
Solutions
|
|
359
|
|
|
329
|
|
|
9
|
|
1
|
|
—
|
|
—
|
|
8
|
Retirement
Solutions
|
|
489
|
|
|
441
|
|
|
11
|
|
3
|
|
—
|
|
4
|
|
4
|
Health
Solutions
|
|
538
|
|
|
532
|
|
|
1
|
|
1
|
|
—
|
|
(6)
|
|
6
|
Data & Analytic
Services
|
|
298
|
|
|
256
|
|
|
16
|
|
2
|
|
—
|
|
2
|
|
12
|
Elimination
|
|
(1)
|
|
|
(2)
|
|
|
NA
|
|
NA
|
|
NA
|
|
NA
|
|
NA
|
Total
revenue
|
|
$
|
2,909
|
|
|
$
|
2,650
|
|
|
10%
|
|
2%
|
|
—%
|
|
2%
|
|
6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
|
|
|
|
|
|
|
|
|
(millions)
|
|
Dec 31,
2017
|
|
Dec 31,
2016
|
|
%
Change
|
|
Less:
Currency
Impact (1)
|
|
Less:
Fiduciary
Investment
Income (2)
|
|
Less:
Acquisitions,
Divestitures &
Other
|
|
Organic
Revenue
Growth (3)
|
Commercial Risk
Solutions
|
|
$
|
4,169
|
|
|
$
|
3,929
|
|
|
6%
|
|
—%
|
|
—%
|
|
4%
|
|
2%
|
Reinsurance
Solutions
|
|
1,429
|
|
|
1,361
|
|
|
5
|
|
—
|
|
—
|
|
(1)
|
|
6
|
Retirement
Solutions
|
|
1,755
|
|
|
1,707
|
|
|
3
|
|
(1)
|
|
—
|
|
1
|
|
3
|
Health
Solutions
|
|
1,515
|
|
|
1,370
|
|
|
11
|
|
—
|
|
—
|
|
4
|
|
7
|
Data & Analytic
Services
|
|
1,140
|
|
|
1,050
|
|
|
9
|
|
—
|
|
—
|
|
3
|
|
6
|
Elimination
|
|
(10)
|
|
|
(8)
|
|
|
NA
|
|
NA
|
|
NA
|
|
NA
|
|
NA
|
Total
revenue
|
|
$
|
9,998
|
|
|
$
|
9,409
|
|
|
6%
|
|
—%
|
|
—%
|
|
2%
|
|
4%
|
|
|
(1)
|
Currency impact is
determined by translating last year's revenue at this year's
foreign exchange rates.
|
(2)
|
Fiduciary Investment
Income for the three months ended December 31, 2017 and 2016,
respectively, was $9 million and $6 million. Fiduciary Investment
Income for the twelve months ended December 31, 2017 and 2016,
respectively, was $32 million and $22 million.
|
(3)
|
Organic revenue
growth includes the impact of intercompany activity and excludes
the impact of foreign exchange rate changes, acquisitions,
divestitures, transfers between business units, fiduciary
investment income, and reimbursable expenses.
|
Free Cash Flow
from Continuing Operations (Unaudited)
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
|
(millions)
|
|
Dec 31,
2017
|
|
Dec 31,
2016
|
|
%
Change
|
Cash Provided By
Continuing Operating Activities
|
|
$
|
669
|
|
|
$
|
1,829
|
|
|
(63)%
|
|
Capital Expenditures
Used for Continuing Operations
|
|
(183)
|
|
|
(156)
|
|
|
17
|
|
Free Cash Flow
Provided by Continuing Operations (1)
|
|
$
|
486
|
|
|
$
|
1,673
|
|
|
(71)%
|
|
|
|
(1)
|
Free cash flow is
defined as cash flow from operations less capital expenditures.
This non-GAAP measure does not imply or represent a precise
calculation of residual cash flow available for discretionary
expenditures.
|
Aon
plc Reconciliation of Non-GAAP Measures - Operating
Income and Diluted Earnings Per Share from Continuing Operations
(Unaudited) (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Twelve Months
Ended
|
|
|
(millions,
except percentages)
|
|
Dec 31,
2017
|
|
Dec 31,
2016
|
|
%
Change
|
|
Dec 31,
2017
|
|
Dec 31,
2016
|
|
%
Change
|
Revenue
|
|
$
|
2,909
|
|
|
$
|
2,650
|
|
|
10%
|
|
|
$
|
9,998
|
|
|
$
|
9,409
|
|
|
6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income -
as reported
|
|
$
|
489
|
|
|
$
|
463
|
|
|
6%
|
|
|
$
|
979
|
|
|
$
|
1,638
|
|
|
(40)%
|
Amortization and
impairment of intangible assets
|
|
100
|
|
|
40
|
|
|
|
|
704
|
|
|
157
|
|
|
|
Restructuring
|
|
96
|
|
|
—
|
|
|
|
|
497
|
|
|
—
|
|
|
|
Regulatory and
compliance matters
|
|
(14)
|
|
|
—
|
|
|
|
|
28
|
|
|
—
|
|
|
|
Pension
settlement
|
|
128
|
|
|
158
|
|
|
|
|
128
|
|
|
220
|
|
|
|
Transaction
costs
|
|
—
|
|
|
15
|
|
|
|
|
—
|
|
|
15
|
|
|
|
Operating income -
as adjusted
|
|
$
|
799
|
|
|
$
|
676
|
|
|
18%
|
|
|
$
|
2,336
|
|
|
$
|
2,030
|
|
|
15%
|
Operating margin -
as reported
|
|
16.8%
|
|
|
17.5%
|
|
|
|
|
9.8%
|
|
|
17.4%
|
|
|
|
Operating margin -
as adjusted
|
|
27.5%
|
|
|
25.5%
|
|
|
|
|
23.4%
|
|
|
21.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Twelve Months
Ended
|
|
|
(millions, except per share data)
|
|
Dec 31,
2017
|
|
Dec 31,
2016
|
|
%
Change
|
|
2017
|
|
2016
|
|
%
Change
|
Operating income -
as adjusted
|
|
$
|
799
|
|
|
$
|
676
|
|
|
18%
|
|
|
$
|
2,336
|
|
|
$
|
2,030
|
|
|
15%
|
Interest
income
|
|
7
|
|
|
3
|
|
|
133
|
|
|
27
|
|
|
9
|
|
|
200
|
Interest
expense
|
|
(71)
|
|
|
(70)
|
|
|
1
|
|
|
(282)
|
|
|
(282)
|
|
|
—
|
Other income
(expense)
|
|
(19)
|
|
|
9
|
|
|
(311)
|
|
|
(39)
|
|
|
36
|
|
|
(208)
|
Income before
income taxes from continuing operations - as
adjusted
|
|
716
|
|
|
618
|
|
|
16
|
|
|
2,042
|
|
|
1,793
|
|
|
14
|
Income taxes - as
adjusted (2)
|
|
111
|
|
|
74
|
|
|
50
|
|
|
305
|
|
|
250
|
|
|
22
|
Net income from
continuing operations - as adjusted
|
|
605
|
|
|
544
|
|
|
11
|
|
|
1,737
|
|
|
1,543
|
|
|
13
|
Less: Net income
attributable to noncontrolling interests
|
|
7
|
|
|
7
|
|
|
—
|
|
|
37
|
|
|
34
|
|
|
9
|
Net income
attributable to Aon shareholders from continuing operations - as
adjusted
|
|
$
|
598
|
|
|
$
|
537
|
|
|
11%
|
|
|
$
|
1,700
|
|
|
$
|
1,509
|
|
|
13%
|
Adjusted income
from discontinued operations, net of tax
(3)
|
|
$
|
(4)
|
|
|
$
|
100
|
|
|
(104)%
|
|
|
$
|
56
|
|
|
$
|
271
|
|
|
(79)%
|
Net income
attributable to Aon shareholders - as adjusted
|
|
$
|
594
|
|
|
$
|
637
|
|
|
(7)%
|
|
|
$
|
1,756
|
|
|
$
|
1,780
|
|
|
(1)%
|
Diluted net income
per share attributable to Aon shareholders
|
Continuing operations
- as adjusted
|
|
$
|
2.35
|
|
|
$
|
2.00
|
|
|
18%
|
|
|
$
|
6.52
|
|
|
$
|
5.58
|
|
|
17%
|
Discontinued
operations - as adjusted
|
|
(0.01)
|
|
|
0.37
|
|
|
(103)
|
|
|
0.22
|
|
|
1.01
|
|
|
(78)
|
Net income - as
adjusted
|
|
$
|
2.34
|
|
|
$
|
2.37
|
|
|
(1)%
|
|
|
$
|
6.74
|
|
|
$
|
6.59
|
|
|
2%
|
Weighted average
ordinary shares outstanding - diluted
|
|
254.5
|
|
|
268.3
|
|
|
(5)%
|
|
|
260.7
|
|
|
270.3
|
|
|
(4)%
|
Effective Tax
Rates (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing Operations
- U.S. GAAP
|
|
95.8%
|
|
|
5.2%
|
|
|
|
|
36.5%
|
|
|
10.6%
|
|
|
|
Continuing Operations
- Non-GAAP
|
|
15.5%
|
|
|
12.0%
|
|
|
|
|
14.9%
|
|
|
13.9%
|
|
|
|
Discontinued
Operations - U.S. GAAP
|
|
17.7%
|
|
|
28.6%
|
|
|
|
|
58.9%
|
|
|
34.0%
|
|
|
|
Discontinued
Operations - Non-GAAP (3)
|
|
72.9%
|
|
|
26.0%
|
|
|
|
|
11.7%
|
|
|
30.2%
|
|
|
|
|
|
(1)
|
Certain noteworthy
items impacting operating income in 2017 and 2016 are described in
this schedule. The items shown with the caption "as adjusted" are
non-GAAP measures.
|
(2)
|
Tax expense was
adjusted to exclude the estimated impact of the Tax Cuts and Jobs
Act, including the impact of the transition tax imposed on our
accumulated foreign earnings and the remeasurement of the carrying
value of our U.S. net deferred tax assets due to the lower
corporate tax rate. The provisional estimate of the impact of
U.S. Tax Reform is based on Aon's initial analysis of the Tax Cuts
and Jobs Act and may be adjusted in future periods due to, among
other things, additional analysis performed by Aon and additional
guidance that may be issued by the U.S. Department of
Treasury. Further, adjusted items are generally taxed at the
estimated annual effective tax rate, except for the applicable tax
impact associated with estimated restructuring expenses,
accelerated tradename amortization, impairment charges, regulatory
and compliance provisions, and non-cash pension settlement charges,
which are adjusted at the related jurisdictional rate.
|
(3)
|
Adjusted income from
discontinued operations, net of tax, excludes the gain on sale and
intangible asset amortization on discontinued operations of $(19)
million and $0 million, respectively, for the three months ended
December 31, 2017 and $1,964 million and $11 million,
respectively, for the twelve months ended December 31,
2017. Adjusted income from discontinued operations, net of
tax, excludes intangible asset amortization on discontinued
operations of $30 million and $120 million for the three and twelve
months ended December 31, 2016. The effective tax rate was
further adjusted for the applicable tax impact associated with the
gain on sale and intangible asset amortization, as
applicable.
|
Aon
plc Consolidated Statements of Financial Position
(Unaudited)
|
|
|
|
|
|
As of
|
(millions)
|
|
December 31,
2017
|
|
December 31,
2016
|
ASSETS
|
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
756
|
|
|
$
|
426
|
Short-term
investments
|
|
529
|
|
|
290
|
Receivables,
net
|
|
2,478
|
|
|
2,106
|
Fiduciary assets
(1)
|
|
9,625
|
|
|
8,959
|
Other current
assets
|
|
289
|
|
|
247
|
Current assets of
discontinued operations
|
|
—
|
|
|
1,118
|
Total Current
Assets
|
|
13,677
|
|
|
13,146
|
Goodwill
|
|
8,358
|
|
|
7,410
|
Intangible assets,
net
|
|
1,733
|
|
|
1,890
|
Fixed assets,
net
|
|
564
|
|
|
550
|
Deferred tax
assets
|
|
389
|
|
|
325
|
Prepaid
pension
|
|
1,060
|
|
|
858
|
Other non-current
assets
|
|
307
|
|
|
360
|
Non-current assets of
discontinued operations
|
|
—
|
|
|
2,076
|
TOTAL
ASSETS
|
|
$
|
26,088
|
|
|
$
|
26,615
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
LIABILITIES
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
$
|
1,961
|
|
|
$
|
1,604
|
Short-term debt and
current portion of long-term debt
|
|
299
|
|
|
336
|
Fiduciary
liabilities
|
|
9,625
|
|
|
8,959
|
Other current
liabilities
|
|
870
|
|
|
656
|
Current liabilities
of discontinued operations
|
|
—
|
|
|
940
|
Total Current
Liabilities
|
|
12,755
|
|
|
12,495
|
Long-term
debt
|
|
5,667
|
|
|
5,869
|
Deferred tax
liabilities
|
|
127
|
|
|
101
|
Pension, other post
retirement, and post employment liabilities
|
|
1,789
|
|
|
1,760
|
Other non-current
liabilities
|
|
1,102
|
|
|
719
|
Non-current
liabilities of discontinued operations
|
|
—
|
|
|
139
|
TOTAL
LIABILITIES
|
|
21,440
|
|
|
21,083
|
|
|
|
|
|
EQUITY
|
|
|
|
|
Ordinary shares -
$0.01 nominal value
|
|
2
|
|
|
3
|
Additional paid-in
capital
|
|
5,775
|
|
|
5,577
|
Retained
earnings
|
|
2,302
|
|
|
3,807
|
Accumulated other
comprehensive loss
|
|
(3,496)
|
|
|
(3,912)
|
TOTAL AON
SHAREHOLDERS' EQUITY
|
|
4,583
|
|
|
5,475
|
Noncontrolling
interests
|
|
65
|
|
|
57
|
TOTAL
EQUITY
|
|
4,648
|
|
|
5,532
|
TOTAL LIABILITIES
AND EQUITY
|
|
$
|
26,088
|
|
|
$
|
26,615
|
|
|
(1)
|
Includes cash and
short-term investments of $3,743 million and $3,290 million for the
periods ended December 31, 2017 and 2016,
respectively.
|
Aon
plc Consolidated Statements of Cash Flows
(Unaudited)
|
|
|
|
|
|
Year ended
December 31
|
(millions)
|
|
2017
|
|
2016
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
Net income
|
|
$
|
1,263
|
|
|
$
|
1,430
|
Less: Income from
discontinued operations, net of income taxes
|
|
828
|
|
|
177
|
Adjustments to
reconcile net income to cash provided by operating
activities:
|
|
|
|
|
Loss (gain) from
sales of businesses and investments, net
|
|
16
|
|
|
(39)
|
Depreciation of fixed
assets
|
|
187
|
|
|
162
|
Amortization and
impairment of intangible assets
|
|
704
|
|
|
157
|
Share-based
compensation expense
|
|
319
|
|
|
306
|
Deferred income
taxes
|
|
(8)
|
|
|
(24)
|
Change in assets and
liabilities:
|
|
|
|
|
Fiduciary
receivables
|
|
171
|
|
|
595
|
Short-term
investments — funds held on behalf of clients
|
|
(135)
|
|
|
(540)
|
Fiduciary
liabilities
|
|
(36)
|
|
|
(55)
|
Receivables,
net
|
|
(254)
|
|
|
(105)
|
Accounts payable and
accrued liabilities
|
|
96
|
|
|
53
|
Restructuring
reserves
|
|
172
|
|
|
—
|
Current income
taxes
|
|
(924)
|
|
|
(42)
|
Pension, other
postretirement and other postemployment liabilities
|
|
(66)
|
|
|
42
|
Other assets and
liabilities
|
|
(8)
|
|
|
66
|
Cash provided by
operating activities - continuing operations
|
|
669
|
|
|
1,829
|
Cash provided by
operating activities - discontinued operations
|
|
65
|
|
|
497
|
CASH PROVIDED BY
OPERATING ACTIVITIES
|
|
734
|
|
|
2,326
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
Proceeds from
investments
|
|
68
|
|
|
43
|
Payments for
investments
|
|
(64)
|
|
|
(64)
|
Net sales (purchases)
of short-term investments — non-fiduciary
|
|
(232)
|
|
|
61
|
Acquisition of
businesses, net of cash acquired
|
|
(1,029)
|
|
|
(879)
|
Sale of business, net
of cash sold
|
|
4,246
|
|
|
107
|
Capital
expenditures
|
|
(183)
|
|
|
(156)
|
Cash provided by
investing activities - continuing operations
|
|
2,806
|
|
|
(888)
|
Cash provided by
investing activities - discontinued operations
|
|
(19)
|
|
|
(66)
|
CASH USED FOR
INVESTING ACTIVITIES
|
|
2,787
|
|
|
(954)
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
Share
repurchase
|
|
(2,399)
|
|
|
(1,257)
|
Issuance of shares
for employee benefit plans
|
|
(121)
|
|
|
(129)
|
Issuance of
debt
|
|
1,654
|
|
|
3,467
|
Repayment of
debt
|
|
(1,999)
|
|
|
(2,945)
|
Cash dividends to
shareholders
|
|
(364)
|
|
|
(345)
|
Noncontrolling
interests and other financing activities
|
|
(36)
|
|
|
(77)
|
Cash used for
financing activities - continuing operations
|
|
(3,265)
|
|
|
(1,286)
|
Cash used for
financing activities - discontinued operations
|
|
—
|
|
|
—
|
CASH USED FOR
FINANCING ACTIVITIES
|
|
(3,265)
|
|
|
(1,286)
|
|
|
|
|
|
EFFECT OF EXCHANGE
RATE CHANGES ON CASH AND CASH EQUIVALENTS
|
|
69
|
|
|
(39)
|
NET INCREASE IN
CASH AND CASH EQUIVALENTS
|
|
325
|
|
|
47
|
CASH AND CASH
EQUIVALENTS AT BEGINNING OF YEAR
|
|
431
|
|
|
384
|
CASH AND CASH
EQUIVALENTS AT END OF YEAR (1)
|
|
$
|
756
|
|
|
$
|
431
|
|
|
(1)
|
Includes $0 million
and $5 million of discontinued operations at December 31, 2017
and 2016, respectively.
|
Aon
plc Restructuring Plan (Unaudited)
(1)
|
|
|
|
Three months
ended
December 31, 2017
|
|
Twelve months
ended
December 31, 2017
|
|
Estimated
Remaining Costs
|
|
Estimated
Total
Cost (2)
|
Workforce
reduction
|
|
$
|
42
|
|
|
$
|
299
|
|
|
$
|
151
|
|
|
$
|
450
|
Technology
rationalization
|
|
11
|
|
|
33
|
|
|
97
|
|
|
130
|
Lease
consolidation
|
|
—
|
|
|
8
|
|
|
77
|
|
|
85
|
Asset
impairments
|
|
—
|
|
|
26
|
|
|
24
|
|
|
50
|
Other costs
associated with restructuring and separation
(3)
|
|
43
|
|
|
131
|
|
|
179
|
|
|
310
|
Total restructuring
and related expenses
|
|
$
|
96
|
|
|
$
|
497
|
|
|
$
|
528
|
|
|
$
|
1,025
|
|
|
(1)
|
In the Consolidated Statements
of Income, Workforce reductions are included in "Compensation and
benefits," Technology rationalization is included in "Information
technology," Lease consolidations are included in "Premises," Asset
impairments are included in "Depreciation of fixed assets," and
Other costs associated with restructuring and separation are
included in "Other general expenses" depending on the nature of the
expense.
|
(2)
|
Actual costs, when
incurred, may vary due to changes in the assumptions built into the
plan. Significant assumptions that may change when plans are
finalized and implemented include, but are not limited to, changes
in severance calculations, changes in assumptions underlying
sublease loss calculation due to changing market conditions, and
changes in the overall analysis that might cause the Company to add
or cancel component initiatives. Estimated allocations between
categories may be revised in future periods as these assumptions
are updated.
|
(3)
|
Other costs
associated with the Restructuring Plan include those to separate
the Divested Business, as well as moving costs, and consulting and
legal fees. These costs are generally recognized when
incurred.
|
Aon
plc Pro Forma Historical Reconciliation of Non-GAAP
Measures - Operating Income and Diluted Earnings Per Share from
Continuing Operations as Adjusted for Changes in Accounting
Guidance (Unaudited) (1)(2)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
(5)
|
|
Full
Year 2016 (5)
|
|
Three Months Ended
(6)
|
|
Full
Year 2017
(6)
|
(millions, except per
share data)
|
|
Mar
31, 2016
|
|
Jun 30,
2016
|
|
Sep 30,
2016
|
|
Dec 31,
2016
|
|
|
Mar
31, 2017
|
|
Jun 30,
2017
|
|
Sep 30,
2017
|
|
Dec 31,
2017
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Risk
Solutions
|
|
$
|
969
|
|
|
$
|
990
|
|
|
$
|
884
|
|
|
$
|
1,088
|
|
|
$
|
3,931
|
|
|
$
|
989
|
|
|
$
|
1,041
|
|
|
$
|
915
|
|
|
$
|
1,218
|
|
|
$
|
4,163
|
Reinsurance
Solutions
|
|
667
|
|
|
335
|
|
|
234
|
|
|
131
|
|
|
1,367
|
|
|
671
|
|
|
345
|
|
|
257
|
|
|
153
|
|
|
1,426
|
Retirement
Solutions
|
|
396
|
|
|
405
|
|
|
465
|
|
|
441
|
|
|
1,707
|
|
|
385
|
|
|
388
|
|
|
492
|
|
|
489
|
|
|
1,754
|
Health
Solutions
|
|
338
|
|
|
253
|
|
|
245
|
|
|
522
|
|
|
1,358
|
|
|
428
|
|
|
281
|
|
|
277
|
|
|
526
|
|
|
1,512
|
Data & Analytic
Services
|
|
263
|
|
|
271
|
|
|
260
|
|
|
256
|
|
|
1,050
|
|
|
273
|
|
|
281
|
|
|
287
|
|
|
299
|
|
|
1,140
|
Elimination
|
|
(2)
|
|
|
(1)
|
|
|
(3)
|
|
|
(2)
|
|
|
(8)
|
|
|
—
|
|
|
(4)
|
|
|
(5)
|
|
|
(1)
|
|
|
(10)
|
Total
revenue
|
|
$
|
2,631
|
|
|
$
|
2,253
|
|
|
$
|
2,085
|
|
|
$
|
2,436
|
|
|
$
|
9,405
|
|
|
$
|
2,746
|
|
|
$
|
2,332
|
|
|
$
|
2,223
|
|
|
$
|
2,684
|
|
|
$
|
9,985
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
1,444
|
|
|
1,372
|
|
|
1,293
|
|
|
1,417
|
|
|
5,526
|
|
|
1,548
|
|
|
1,471
|
|
|
1,420
|
|
|
1,568
|
|
|
6,007
|
Information
technology
|
|
83
|
|
|
99
|
|
|
99
|
|
|
105
|
|
|
386
|
|
|
88
|
|
|
98
|
|
|
109
|
|
|
124
|
|
|
419
|
Premises
|
|
82
|
|
|
89
|
|
|
86
|
|
|
86
|
|
|
343
|
|
|
84
|
|
|
86
|
|
|
89
|
|
|
89
|
|
|
348
|
Depreciation of fixed
assets
|
|
38
|
|
|
41
|
|
|
39
|
|
|
44
|
|
|
162
|
|
|
54
|
|
|
54
|
|
|
40
|
|
|
39
|
|
|
187
|
Amortization of
intangible assets
|
|
37
|
|
|
38
|
|
|
42
|
|
|
40
|
|
|
157
|
|
|
43
|
|
|
460
|
|
|
101
|
|
|
100
|
|
|
704
|
Other general
expenses
|
|
270
|
|
|
230
|
|
|
257
|
|
|
279
|
|
|
1,036
|
|
|
307
|
|
|
330
|
|
|
307
|
|
|
328
|
|
|
1,272
|
Total
operating expenses
|
|
1,954
|
|
|
1,869
|
|
|
1,816
|
|
|
1,971
|
|
|
7,610
|
|
|
2,124
|
|
|
2,499
|
|
|
2,066
|
|
|
2,248
|
|
|
8,937
|
Operating
income
|
|
677
|
|
|
384
|
|
|
269
|
|
|
465
|
|
|
1,795
|
|
|
622
|
|
|
(167)
|
|
|
157
|
|
|
436
|
|
|
1,048
|
Amortization of
intangible assets
|
|
37
|
|
|
38
|
|
|
42
|
|
|
40
|
|
|
157
|
|
|
43
|
|
|
460
|
|
|
101
|
|
|
100
|
|
|
704
|
Restructuring
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
144
|
|
|
155
|
|
|
102
|
|
|
96
|
|
|
497
|
Regulatory and
compliance matters
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
34
|
|
|
8
|
|
|
(14)
|
|
|
28
|
Transaction
costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
—
|
Operating income -
as adjusted
|
|
714
|
|
|
422
|
|
|
311
|
|
|
520
|
|
|
1,967
|
|
|
809
|
|
|
482
|
|
|
368
|
|
|
618
|
|
|
2,277
|
Operating margin
from continuing operations - as adjusted
|
|
27.1%
|
|
|
18.7%
|
|
|
14.9%
|
|
|
21.3%
|
|
|
20.9%
|
|
|
29.5%
|
|
|
20.7%
|
|
|
16.6%
|
|
|
23.0%
|
|
|
22.8%
|
Interest
income
|
|
2
|
|
|
3
|
|
|
1
|
|
|
3
|
|
|
9
|
|
|
2
|
|
|
8
|
|
|
10
|
|
|
7
|
|
|
27
|
Interest
expense
|
|
(69)
|
|
|
(73)
|
|
|
(70)
|
|
|
(70)
|
|
|
(282)
|
|
|
(70)
|
|
|
(71)
|
|
|
(70)
|
|
|
(71)
|
|
|
(282)
|
Other income
(expense) - as adjusted (3) (4)
|
|
29
|
|
|
10
|
|
|
22
|
|
|
22
|
|
|
83
|
|
|
(2)
|
|
|
4
|
|
|
4
|
|
|
(3)
|
|
|
3
|
Income before
income taxes from continuing operations - as
adjusted
|
|
676
|
|
|
362
|
|
|
264
|
|
|
475
|
|
|
1,777
|
|
|
739
|
|
|
423
|
|
|
312
|
|
|
551
|
|
|
2,025
|
Income
taxes
|
|
107
|
|
|
53
|
|
|
35
|
|
|
49
|
|
|
244
|
|
|
98
|
|
|
68
|
|
|
54
|
|
|
81
|
|
|
301
|
Income from
continuing operations - as adjusted
|
|
569
|
|
|
309
|
|
|
229
|
|
|
426
|
|
|
1,533
|
|
|
641
|
|
|
355
|
|
|
258
|
|
|
470
|
|
|
1,724
|
Less: Net income
attributable to noncontrolling interests
|
|
12
|
|
|
8
|
|
|
7
|
|
|
7
|
|
|
34
|
|
|
14
|
|
|
9
|
|
|
7
|
|
|
7
|
|
|
37
|
Net income
attributable to Aon shareholders from continuing operations - as
adjusted
|
|
$
|
557
|
|
|
$
|
301
|
|
|
$
|
222
|
|
|
$
|
419
|
|
|
$
|
1,499
|
|
|
$
|
627
|
|
|
$
|
346
|
|
|
$
|
251
|
|
|
$
|
463
|
|
|
$
|
1,687
|
Diluted earnings
per share from continuing operations - as adjusted
|
|
$
|
2.04
|
|
|
$
|
1.12
|
|
|
$
|
0.82
|
|
|
$
|
1.56
|
|
|
$
|
5.55
|
|
|
$
|
2.35
|
|
|
$
|
1.31
|
|
|
$
|
0.98
|
|
|
$
|
1.82
|
|
|
$
|
6.47
|
Weighted average
ordinary shares outstanding - diluted
|
|
273.7
|
|
|
269.8
|
|
|
269.6
|
|
|
268.3
|
|
|
270.3
|
|
|
267.0
|
|
|
264.3
|
|
|
257.3
|
|
|
254.5
|
|
|
260.7
|
|
|
(1)
|
Certain noteworthy
items impacting operating income in 2016 and 2017 are described in
this schedule. The items shown with the caption "as adjusted" are
non-GAAP measures.
|
(2)
|
The historical
periods presented above have been adjusted retrospectively to
reflect changes in accounting guidance related to revenue
recognition and pensions, effective for Aon in the first quarter of
2018.
|
(3)
|
For illustrative
purposes, the impact of the total foreign currency related to the
new revenue accounting guidance is excluded from the pro forma
financial statements. The impact on Other income (expense) of
foreign currency due to this new guidance was $(3) million, $5
million, $1 million, and $4 million, respectively, for the three
months ended March 31, 2016, June 30, 2016, September 30, 2016, and
December 31, 2016 and $7 million for the twelve months ended
December 31, 2016. The impact on Other income (expense)
of foreign currency due to this new guidance was $(2) million, $(4)
million, $(6) million, and $1 million, respectively, for the three
months ended March 31, 2017, June 30, 2017, September 30, 2017, and
December 31, 2017, and $(11) million for the twelve months ended
December 31, 2017.
|
(4)
|
Adjusted Other income
(expense) excludes pension settlement charges taken within each
respective period. Pension settlement charges were $62
million for the three months ended June 30, 2016, and $158 million
and $220 million for the three and twelve months ended December 31,
2016. Pension settlement charges were $128 million for the
three and twelve months ended December 31, 2017.
|
(5)
|
The non-GAAP
effective tax rates reported were 15.7%, 14.9%, 14.2%, and 12.0%,
respectively, for the three months ended March 31, 2016, June 30,
2016, September 30, 2016, and December 31, 2016 and 13.9% for the
twelve months ended December 31, 2016. Adjusted items are
generally taxed at the estimated annual effective tax rate, except
for the applicable tax impact associated with non-cash pension
settlements and transaction costs which are adjusted at the related
jurisdictional rate. The non-GAAP effective tax rates for
continuing operations, adjusted for the change in accounting
guidance were 15.8%, 14.6%, 13.3%, and 10.3% for the three months
ended March 31, 2016, June 30, 2016, September 30, 2016, and
December 31, 2016, and 13.7% for the twelve months ended December
31, 2016.
|
(6)
|
The non-GAAP
effective tax rates reported were 11.1%, 15.6%, 17.5%, and 15.5%,
respectively, for the three months ended March 31, 2017, June 30,
2017, September 30, 2017, and December 31, 2017, and 14.9% for the
twelve months ended December 31, 2017. Adjusted items are
generally taxed at the estimated annual effective tax rate, except
for the applicable tax impact associated with non-cash pension
settlements and transaction costs which are adjusted at the related
jurisdictional rate. The non-GAAP effective tax rates for
continuing operations, adjusted for the change in accounting
guidance were 13.3%, 16.1%, 17.3%, and 14.7% for the three months
ended March 31, 2017, June 30, 2017, September 30, 2017, and
December 31, 2017, and 14.9% for the twelve months ended December
31, 2017.
|
Aon
plc Pro Forma Historical Reconciliation of Reported
Non-GAAP Measures to Non-GAAP Measures Adjusted for Changes in
Accounting Guidance (Unaudited)(1)(2)
|
|
|
|
|
|
Three Months Ended
March 31
|
|
|
2016
|
|
2017
|
(millions, except per
share data)
|
|
As
Reported
|
Revenue
Recognition
|
Pension
|
Pro
Forma
|
|
As
Reported
|
Revenue
Recognition
|
Pension
|
Pro
Forma
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
Commercial Risk
Solutions
|
|
$
|
961
|
|
$
|
8
|
|
$
|
—
|
|
$
|
969
|
|
|
$
|
984
|
|
$
|
5
|
|
$
|
—
|
|
$
|
989
|
Reinsurance
Solutions
|
|
371
|
|
296
|
|
—
|
|
667
|
|
|
371
|
|
300
|
|
—
|
|
671
|
Retirement
Solutions
|
|
395
|
|
1
|
|
—
|
|
396
|
|
|
386
|
|
(1)
|
|
—
|
|
385
|
Health
Solutions
|
|
292
|
|
46
|
|
—
|
|
338
|
|
|
372
|
|
56
|
|
—
|
|
428
|
Data & Analytic
Services
|
|
259
|
|
4
|
|
—
|
|
263
|
|
|
268
|
|
5
|
|
—
|
|
273
|
Elimination
|
|
(2)
|
|
—
|
|
—
|
|
(2)
|
|
|
—
|
|
—
|
|
—
|
|
—
|
Total
revenue
|
|
$
|
2,276
|
|
$
|
355
|
|
$
|
—
|
|
$
|
2,631
|
|
|
$
|
2,381
|
|
$
|
365
|
|
$
|
—
|
|
$
|
2,746
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
1,345
|
|
88
|
|
11
|
|
1,444
|
|
|
1,461
|
|
79
|
|
8
|
|
1,548
|
Information
technology
|
|
83
|
|
—
|
|
—
|
|
83
|
|
|
88
|
|
—
|
|
—
|
|
88
|
Premises
|
|
82
|
|
—
|
|
—
|
|
82
|
|
|
84
|
|
—
|
|
—
|
|
84
|
Depreciation of fixed
assets
|
|
38
|
|
—
|
|
—
|
|
38
|
|
|
54
|
|
—
|
|
—
|
|
54
|
Amortization and
impairment of intangible assets
|
|
37
|
|
—
|
|
—
|
|
37
|
|
|
43
|
|
—
|
|
—
|
|
43
|
Other general
expenses
|
|
271
|
|
(1)
|
|
—
|
|
270
|
|
|
308
|
|
(1)
|
|
—
|
|
307
|
Total
operating expenses
|
|
1,856
|
|
87
|
|
11
|
|
1,954
|
|
|
2,038
|
|
78
|
|
8
|
|
2,124
|
Operating
income
|
|
420
|
|
268
|
|
(11)
|
|
677
|
|
|
343
|
|
287
|
|
(8)
|
|
622
|
Amortization and
impairment of intangible assets
|
|
37
|
|
—
|
|
—
|
|
37
|
|
|
43
|
|
—
|
|
—
|
|
43
|
Restructuring
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
144
|
|
—
|
|
—
|
|
144
|
Operating income -
as adjusted
|
|
457
|
|
268
|
|
(11)
|
|
714
|
|
|
530
|
|
287
|
|
(8)
|
|
809
|
Operating margin
from continuing operations - as adjusted
|
|
20.1%
|
|
|
|
27.1%
|
|
|
22.3%
|
|
|
|
29.5%
|
Interest
income
|
|
2
|
|
—
|
|
—
|
|
2
|
|
|
2
|
|
—
|
|
—
|
|
2
|
Interest
expense
|
|
(69)
|
|
—
|
|
—
|
|
(69)
|
|
|
(70)
|
|
—
|
|
—
|
|
(70)
|
Other income
(expense) (3)
|
|
18
|
|
—
|
|
11
|
|
29
|
|
|
(10)
|
|
—
|
|
8
|
|
(2)
|
Income before
income taxes from continuing operations - as
adjusted
|
|
408
|
|
268
|
|
—
|
|
676
|
|
|
452
|
|
287
|
|
—
|
|
739
|
Income
taxes
|
|
64
|
|
43
|
|
|
107
|
|
|
50
|
|
48
|
|
|
98
|
Income from
continuing operations - as adjusted
|
|
344
|
|
225
|
|
—
|
|
569
|
|
|
402
|
|
239
|
|
—
|
|
641
|
Less: Net income
attributable to noncontrolling interests
|
|
12
|
|
—
|
|
—
|
|
12
|
|
|
14
|
|
—
|
|
—
|
|
14
|
Net income from
continuing operations attributable to Aon shareholders - as
adjusted
|
|
$
|
332
|
|
$
|
225
|
|
$
|
—
|
|
$
|
557
|
|
|
$
|
388
|
|
$
|
239
|
|
$
|
—
|
|
$
|
627
|
Diluted earnings
per share from continuing operations - as adjusted
|
|
$
|
1.21
|
|
$
|
0.82
|
|
$
|
—
|
|
$
|
2.04
|
|
|
$
|
1.45
|
|
$
|
0.90
|
|
$
|
—
|
|
$
|
2.35
|
Weighted average
ordinary shares outstanding - diluted
|
|
273.7
|
|
273.7
|
|
273.7
|
|
273.7
|
|
|
267.0
|
|
267.0
|
|
267.0
|
|
267.0
|
|
|
(1)
|
Certain noteworthy
items impacting operating income in 2016 and 2017 are described in
this schedule. The items shown with the caption "as adjusted" are
non-GAAP measures.
|
(2)
|
The historical
periods presented above have been adjusted retrospectively to
reflect changes in accounting guidance related to revenue
recognition and pensions, effective for Aon in the first quarter of
2018.
|
(3)
|
For illustrative
purposes, the impact of the total foreign currency related to the
new revenue accounting guidance is excluded from the Pro Forma
financial statements. Had the Company included it, Other
income (expense) in the Revenue Recognition column would have been
$(3) million and $(2) million, respectively, for the three months
ended March 31, 2016 and 2017.
|
Aon
plc Pro Forma Historical Reconciliation of Reported
Non-GAAP Measures to Non-GAAP Measures Adjusted for Changes in
Accounting Guidance (Unaudited)(1)(2)
|
|
|
|
|
|
Three Months Ended
June 30
|
|
|
2016
|
|
2017
|
(millions, except per
share data)
|
|
As
Reported
|
Revenue
Recognition
|
Pension
|
Pro
Forma
|
|
As
Reported
|
Revenue
Recognition
|
Pension
|
Pro
Forma
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
Commercial Risk
Solutions
|
|
$
|
990
|
|
$
|
—
|
|
$
|
—
|
|
$
|
990
|
|
|
$
|
1,042
|
|
$
|
(1)
|
|
$
|
—
|
|
$
|
1,041
|
Reinsurance
Solutions
|
|
332
|
|
3
|
|
—
|
|
335
|
|
|
344
|
|
1
|
|
—
|
|
345
|
Retirement
Solutions
|
|
405
|
|
—
|
|
—
|
|
405
|
|
|
389
|
|
(1)
|
|
—
|
|
388
|
Health
Solutions
|
|
281
|
|
(28)
|
|
—
|
|
253
|
|
|
312
|
|
(31)
|
|
—
|
|
281
|
Data & Analytic
Services
|
|
275
|
|
(4)
|
|
—
|
|
271
|
|
|
285
|
|
(4)
|
|
—
|
|
281
|
Elimination
|
|
(1)
|
|
—
|
|
—
|
|
(1)
|
|
|
(4)
|
|
—
|
|
—
|
|
(4)
|
Total
revenue
|
|
$
|
2,282
|
|
$
|
(29)
|
|
$
|
—
|
|
$
|
2,253
|
|
|
$
|
2,368
|
|
$
|
(36)
|
|
$
|
—
|
|
$
|
2,332
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
1,396
|
|
27
|
|
(51)
|
|
1,372
|
|
|
1,457
|
|
5
|
|
9
|
|
1,471
|
Information
technology
|
|
99
|
|
—
|
|
—
|
|
99
|
|
|
98
|
|
—
|
|
—
|
|
98
|
Premises
|
|
89
|
|
—
|
|
—
|
|
89
|
|
|
86
|
|
—
|
|
—
|
|
86
|
Depreciation of fixed
assets
|
|
41
|
|
—
|
|
—
|
|
41
|
|
|
54
|
|
—
|
|
—
|
|
54
|
Amortization and
impairment of intangible assets
|
|
38
|
|
—
|
|
—
|
|
38
|
|
|
460
|
|
—
|
|
—
|
|
460
|
Other general
expenses
|
|
232
|
|
(2)
|
|
—
|
|
230
|
|
|
331
|
|
(1)
|
|
—
|
|
330
|
Total
operating expenses
|
|
1,895
|
|
25
|
|
(51)
|
|
1,869
|
|
|
2,486
|
|
4
|
|
9
|
|
2,499
|
Operating
income
|
|
387
|
|
(54)
|
|
51
|
|
384
|
|
|
(118)
|
|
(40)
|
|
(9)
|
|
(167)
|
Amortization and
impairment of intangible assets
|
|
38
|
|
—
|
|
—
|
|
38
|
|
|
460
|
|
—
|
|
—
|
|
460
|
Restructuring
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
155
|
|
—
|
|
—
|
|
155
|
Regulatory and
compliance matters
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
34
|
|
—
|
|
—
|
|
34
|
Pension
settlement
|
|
62
|
|
—
|
|
(62)
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
—
|
Operating income -
as adjusted
|
|
487
|
|
(54)
|
|
(11)
|
|
422
|
|
|
531
|
|
(40)
|
|
(9)
|
|
482
|
Operating margin
from continuing operations - as adjusted
|
|
21.3%
|
|
|
|
18.7%
|
|
|
22.4%
|
|
|
|
20.7%
|
Interest
income
|
|
3
|
|
—
|
|
—
|
|
3
|
|
|
8
|
|
—
|
|
—
|
|
8
|
Interest
expense
|
|
(73)
|
|
—
|
|
—
|
|
(73)
|
|
|
(71)
|
|
—
|
|
—
|
|
(71)
|
Other income
(expense) - as adjusted (3) (4)
|
|
(1)
|
|
—
|
|
11
|
|
10
|
|
|
(5)
|
|
—
|
|
9
|
|
4
|
Income before
income taxes from continuing operations - as
adjusted
|
|
416
|
|
(54)
|
|
—
|
|
362
|
|
|
463
|
|
(40)
|
|
—
|
|
423
|
Income
taxes
|
|
62
|
|
(9)
|
|
|
53
|
|
|
72
|
|
(4)
|
|
|
68
|
Income from
continuing operations - as adjusted
|
|
354
|
|
(45)
|
|
—
|
|
309
|
|
|
391
|
|
(36)
|
|
—
|
|
355
|
Less: Net income
attributable to noncontrolling interests
|
|
8
|
|
—
|
|
—
|
|
8
|
|
|
9
|
|
—
|
|
—
|
|
9
|
Net income from
continuing operations attributable to Aon shareholders - as
adjusted
|
|
$
|
346
|
|
$
|
(45)
|
|
$
|
—
|
|
$
|
301
|
|
|
$
|
382
|
|
$
|
(36)
|
|
$
|
—
|
|
$
|
346
|
Diluted earnings
per share from continuing operations - as adjusted
|
|
$
|
1.28
|
|
$
|
(0.17)
|
|
$
|
—
|
|
$
|
1.12
|
|
|
$
|
1.45
|
|
$
|
(0.14)
|
|
$
|
—
|
|
$
|
1.31
|
Weighted average
ordinary shares outstanding - diluted
|
|
269.8
|
|
269.8
|
|
269.8
|
|
269.8
|
|
|
264.3
|
|
264.3
|
|
264.3
|
|
264.3
|
|
|
(1)
|
Certain noteworthy
items impacting operating income in 2016 and 2017 are described in
this schedule. The items shown with the caption "as adjusted" are
non-GAAP measures.
|
(2)
|
The historical
periods presented above have been adjusted retrospectively to
reflect changes in accounting guidance related to revenue
recognition and pensions, effective for Aon in the first quarter of
2018.
|
(3)
|
For illustrative
purposes, the impact of the total foreign currency related to the
new revenue accounting guidance is excluded from the Pro Forma
financial statements. Had the Company included it, Other
income (expense) in the Revenue Recognition column would have been
$5 million and $(4) million, respectively, for the three months
ended June 30, 2016 and 2017.
|
(4)
|
Other income
(expense) is adjusted to exclude the pension settlement charge
taken within the period. The adjustment was previously taken
within operating income prior to the adoption of the new pension
guidance.
|
Aon
plc Pro Forma Historical Reconciliation of Reported
Non-GAAP Measures to Non-GAAP Measures Adjusted for Changes in
Accounting Guidance (Unaudited)(1)(2)
|
|
|
|
|
|
Three Months Ended
September 30
|
|
|
2016
|
|
2017
|
(millions, except per
share data)
|
|
As
Reported
|
Revenue
Recognition
|
Pension
|
Pro
Forma
|
|
As
Reported
|
Revenue
Recognition
|
Pension
|
Pro
Forma
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
Commercial Risk
Solutions
|
|
$
|
884
|
|
$
|
—
|
|
$
|
—
|
|
$
|
884
|
|
|
$
|
917
|
|
$
|
(2)
|
|
$
|
—
|
|
$
|
915
|
Reinsurance
Solutions
|
|
329
|
|
(95)
|
|
—
|
|
234
|
|
|
355
|
|
(98)
|
|
—
|
|
257
|
Retirement
Solutions
|
|
466
|
|
(1)
|
|
—
|
|
465
|
|
|
491
|
|
1
|
|
—
|
|
492
|
Health
Solutions
|
|
265
|
|
(20)
|
|
—
|
|
245
|
|
|
293
|
|
(16)
|
|
—
|
|
277
|
Data & Analytic
Services
|
|
260
|
|
—
|
|
—
|
|
260
|
|
|
289
|
|
(2)
|
|
—
|
|
287
|
Elimination
|
|
(3)
|
|
—
|
|
—
|
|
(3)
|
|
|
(5)
|
|
—
|
|
—
|
|
(5)
|
Total
revenue
|
|
$
|
2,201
|
|
$
|
(116)
|
|
$
|
—
|
|
$
|
2,085
|
|
|
$
|
2,340
|
|
$
|
(117)
|
|
$
|
—
|
|
$
|
2,223
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
1,300
|
|
(19)
|
|
12
|
|
1,293
|
|
|
1,419
|
|
(8)
|
|
9
|
|
1,420
|
Information
technology
|
|
99
|
|
—
|
|
—
|
|
99
|
|
|
109
|
|
—
|
|
—
|
|
109
|
Premises
|
|
86
|
|
—
|
|
—
|
|
86
|
|
|
89
|
|
—
|
|
—
|
|
89
|
Depreciation of fixed
assets
|
|
39
|
|
—
|
|
—
|
|
39
|
|
|
40
|
|
—
|
|
—
|
|
40
|
Amortization and
impairment of intangible assets
|
|
42
|
|
—
|
|
—
|
|
42
|
|
|
101
|
|
—
|
|
—
|
|
101
|
Other general
expenses
|
|
267
|
|
(10)
|
|
—
|
|
257
|
|
|
317
|
|
(10)
|
|
—
|
|
307
|
Total
operating expenses
|
|
1,833
|
|
(29)
|
|
12
|
|
1,816
|
|
|
2,075
|
|
(18)
|
|
9
|
|
2,066
|
Operating
income
|
|
368
|
|
(87)
|
|
(12)
|
|
269
|
|
|
265
|
|
(99)
|
|
(9)
|
|
157
|
Amortization and
impairment of intangible assets
|
|
42
|
|
—
|
|
—
|
|
42
|
|
|
101
|
|
—
|
|
—
|
|
101
|
Restructuring
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
102
|
|
—
|
|
—
|
|
102
|
Regulatory and
compliance matters
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
8
|
|
—
|
|
—
|
|
8
|
Operating income -
as adjusted
|
|
410
|
|
(87)
|
|
(12)
|
|
311
|
|
|
476
|
|
(99)
|
|
(9)
|
|
368
|
Operating margin
from continuing operations - as adjusted
|
|
18.6%
|
|
|
|
14.9%
|
|
|
20.3%
|
|
|
|
16.6%
|
Interest
income
|
|
1
|
|
—
|
|
—
|
|
1
|
|
|
10
|
|
—
|
|
—
|
|
10
|
Interest
expense
|
|
(70)
|
|
—
|
|
—
|
|
(70)
|
|
|
(70)
|
|
—
|
|
—
|
|
(70)
|
Other income
(expense) (3)
|
|
10
|
|
—
|
|
12
|
|
22
|
|
|
(5)
|
|
—
|
|
9
|
|
4
|
Income before
income taxes from continuing operations - as
adjusted
|
|
351
|
|
(87)
|
|
—
|
|
264
|
|
|
411
|
|
(99)
|
|
—
|
|
312
|
Income
taxes
|
|
50
|
|
(15)
|
|
|
35
|
|
|
72
|
|
(18)
|
|
|
54
|
Income from
continuing operations - as adjusted
|
|
301
|
|
(72)
|
|
—
|
|
229
|
|
|
339
|
|
(81)
|
|
—
|
|
258
|
Less: Net income
attributable to noncontrolling interests
|
|
7
|
|
—
|
|
—
|
|
7
|
|
|
7
|
|
—
|
|
—
|
|
7
|
Net income from
continuing operations attributable to Aon shareholders - as
adjusted
|
|
$
|
294
|
|
$
|
(72)
|
|
$
|
—
|
|
$
|
222
|
|
|
$
|
332
|
|
$
|
(81)
|
|
$
|
—
|
|
$
|
251
|
Diluted earnings
per share from continuing operations - as adjusted
|
|
$
|
1.09
|
|
$
|
(0.27)
|
|
$
|
—
|
|
$
|
0.82
|
|
|
$
|
1.29
|
|
$
|
(0.31)
|
|
$
|
—
|
|
$
|
0.98
|
Weighted average
ordinary shares outstanding - diluted
|
|
269.6
|
|
269.6
|
|
269.6
|
|
269.6
|
|
|
257.3
|
|
257.3
|
|
257.3
|
|
257.3
|
|
|
(1)
|
Certain noteworthy
items impacting operating income in 2016 and 2017 are described in
this schedule. The items shown with the caption "as adjusted" are
non-GAAP measures.
|
(2)
|
The historical
periods presented above have been adjusted retrospectively to
reflect changes in accounting guidance related to revenue
recognition and pensions, effective for Aon in the first quarter of
2018.
|
(3)
|
For illustrative
purposes, the impact of the total foreign currency related to the
new revenue accounting guidance is excluded from the Pro Forma
financial statements. Had the Company included it, Other
income (expense) in the Revenue Recognition column would have been
$1 million and $(6) million, respectively, for the three months
ended September 30, 2016 and 2017.
|
Aon
plc Pro Forma Historical Reconciliation of Reported
Non-GAAP Measures to Non-GAAP Measures Adjusted for Changes in
Accounting Guidance (Unaudited)(1)(2)
|
|
|
|
|
|
Three Months Ended
December 31
|
|
|
2016
|
|
2017
|
(millions, except per
share data)
|
|
As
Reported
|
Revenue
Recognition
|
Pension
|
Pro
Forma
|
|
As
Reported
|
Revenue
Recognition
|
Pension
|
Pro
Forma
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
Commercial Risk
Solutions
|
|
$
|
1,094
|
|
$
|
(6)
|
|
$
|
—
|
|
$
|
1,088
|
|
|
$
|
1,226
|
|
$
|
(8)
|
|
$
|
—
|
|
$
|
1,218
|
Reinsurance
Solutions
|
|
329
|
|
(198)
|
|
—
|
|
131
|
|
|
359
|
|
(206)
|
|
—
|
|
153
|
Retirement
Solutions
|
|
441
|
|
—
|
|
—
|
|
441
|
|
|
489
|
|
—
|
|
—
|
|
489
|
Health
Solutions
|
|
532
|
|
(10)
|
|
—
|
|
522
|
|
|
538
|
|
(12)
|
|
—
|
|
526
|
Data & Analytic
Services
|
|
256
|
|
—
|
|
—
|
|
256
|
|
|
298
|
|
1
|
|
—
|
|
299
|
Elimination
|
|
(2)
|
|
—
|
|
—
|
|
(2)
|
|
|
(1)
|
|
—
|
|
—
|
|
(1)
|
Total
revenue
|
|
$
|
2,650
|
|
$
|
(214)
|
|
$
|
—
|
|
$
|
2,436
|
|
|
$
|
2,909
|
|
$
|
(225)
|
|
$
|
—
|
|
$
|
2,684
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
1,646
|
|
(84)
|
|
(145)
|
|
1,417
|
|
|
1,752
|
|
(72)
|
|
(112)
|
|
1,568
|
Information
technology
|
|
105
|
|
—
|
|
—
|
|
105
|
|
|
124
|
|
—
|
|
—
|
|
124
|
Premises
|
|
86
|
|
—
|
|
—
|
|
86
|
|
|
89
|
|
—
|
|
—
|
|
89
|
Depreciation of fixed
assets
|
|
44
|
|
—
|
|
—
|
|
44
|
|
|
39
|
|
—
|
|
—
|
|
39
|
Amortization and
impairment of intangible assets
|
|
40
|
|
—
|
|
—
|
|
40
|
|
|
100
|
|
—
|
|
—
|
|
100
|
Other general
expenses
|
|
266
|
|
13
|
|
—
|
|
279
|
|
|
316
|
|
12
|
|
—
|
|
328
|
Total
operating expenses
|
|
2,187
|
|
(71)
|
|
(145)
|
|
1,971
|
|
|
2,420
|
|
(60)
|
|
(112)
|
|
2,248
|
Operating
income
|
|
463
|
|
(143)
|
|
145
|
|
465
|
|
|
489
|
|
(165)
|
|
112
|
|
436
|
Amortization and
impairment of intangible assets
|
|
40
|
|
—
|
|
—
|
|
40
|
|
|
100
|
|
—
|
|
—
|
|
100
|
Restructuring
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
96
|
|
—
|
|
—
|
|
96
|
Regulatory and
compliance matters
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
(14)
|
|
—
|
|
—
|
|
(14)
|
Pension
settlement
|
|
158
|
|
—
|
|
(158)
|
|
—
|
|
|
128
|
|
—
|
|
(128)
|
|
—
|
Transaction
costs
|
|
15
|
|
—
|
|
—
|
|
15
|
|
|
—
|
|
—
|
|
—
|
|
—
|
Operating income -
as adjusted
|
|
676
|
|
(143)
|
|
(13)
|
|
520
|
|
|
799
|
|
(165)
|
|
(16)
|
|
618
|
Operating margin
from continuing operations - as adjusted
|
|
25.5%
|
|
|
|
21.3%
|
|
|
27.5%
|
|
|
|
23.0%
|
Interest
income
|
|
3
|
|
—
|
|
—
|
|
3
|
|
|
7
|
|
—
|
|
—
|
|
7
|
Interest
expense
|
|
(70)
|
|
—
|
|
—
|
|
(70)
|
|
|
(71)
|
|
—
|
|
—
|
|
(71)
|
Other income
(expense) - as adjusted (3) (4)
|
|
9
|
|
—
|
|
13
|
|
22
|
|
|
(19)
|
|
—
|
|
16
|
|
(3)
|
Income before
income taxes from continuing operations - as
adjusted
|
|
618
|
|
(143)
|
|
—
|
|
475
|
|
|
716
|
|
(165)
|
|
—
|
|
551
|
Income
taxes
|
|
74
|
|
(25)
|
|
|
49
|
|
|
111
|
|
(30)
|
|
|
81
|
Income from
continuing operations - as adjusted
|
|
544
|
|
(118)
|
|
—
|
|
426
|
|
|
605
|
|
(135)
|
|
—
|
|
470
|
Less: Net income
attributable to noncontrolling interests
|
|
7
|
|
—
|
|
—
|
|
7
|
|
|
7
|
|
—
|
|
—
|
|
7
|
Net income from
continuing operations attributable to Aon shareholders - as
adjusted
|
|
$
|
537
|
|
$
|
(118)
|
|
$
|
—
|
|
$
|
419
|
|
|
$
|
598
|
|
$
|
(135)
|
|
$
|
—
|
|
$
|
463
|
Diluted earnings
per share from continuing operations - as adjusted
|
|
$
|
2.00
|
|
$
|
(0.44)
|
|
$
|
—
|
|
$
|
1.56
|
|
|
$
|
2.35
|
|
$
|
(0.53)
|
|
$
|
—
|
|
$
|
1.82
|
Weighted average
ordinary shares outstanding - diluted
|
|
268.3
|
|
268.3
|
|
268.3
|
|
268.3
|
|
|
254.5
|
|
254.5
|
|
254.5
|
|
254.5
|
|
|
(1)
|
Certain noteworthy
items impacting operating income in 2016 and 2017 are described in
this schedule. The items shown with the caption "as adjusted" are
non-GAAP measures.
|
(2)
|
The historical
periods presented above have been adjusted retrospectively to
reflect changes in accounting guidance related to revenue
recognition and pensions, effective for Aon in the first quarter of
2018.
|
(3)
|
For illustrative
purposes, the impact of the total foreign currency related to the
new revenue accounting guidance is excluded from the Pro Forma
financial statements. Had the Company included it, Other
income (expense) in the Revenue Recognition column would have been
$4 million and $1 million, respectively, for the three months ended
December 31, 2016 and 2017.
|
(4)
|
Other income
(expense) is adjusted to exclude the pension settlement charge
taken within the period. The adjustment was previously taken
within operating income prior to the adoption of the new pension
guidance.
|
Aon
plc Pro Forma Historical Reconciliation of Reported
Non-GAAP Measures to Non-GAAP Measures Adjusted for Changes in
Accounting Guidance (Unaudited)(1)(2)
|
|
|
|
|
|
Twelve Months
Ended December 31
|
|
|
2016
|
|
2017
|
(millions, except per
share data)
|
|
As
Reported
|
Revenue
Recognition
|
Pension
|
Pro
Forma
|
|
As
Reported
|
Revenue
Recognition
|
Pension
|
Pro
Forma
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
Commercial Risk
Solutions
|
|
$
|
3,929
|
|
$
|
2
|
|
$
|
—
|
|
$
|
3,931
|
|
|
$
|
4,169
|
|
$
|
(6)
|
|
$
|
—
|
|
$
|
4,163
|
Reinsurance
Solutions
|
|
1,361
|
|
6
|
|
—
|
|
1,367
|
|
|
1,429
|
|
(3)
|
|
—
|
|
1,426
|
Retirement
Solutions
|
|
1,707
|
|
—
|
|
—
|
|
1,707
|
|
|
1,755
|
|
(1)
|
|
—
|
|
1,754
|
Health
Solutions
|
|
1,370
|
|
(12)
|
|
—
|
|
1,358
|
|
|
1,515
|
|
(3)
|
|
—
|
|
1,512
|
Data & Analytic
Services
|
|
1,050
|
|
—
|
|
—
|
|
1,050
|
|
|
1,140
|
|
—
|
|
—
|
|
1,140
|
Elimination
|
|
(8)
|
|
—
|
|
—
|
|
(8)
|
|
|
(10)
|
|
—
|
|
—
|
|
(10)
|
Total
revenue
|
|
$
|
9,409
|
|
$
|
(4)
|
|
$
|
—
|
|
$
|
9,405
|
|
|
$
|
9,998
|
|
$
|
(13)
|
|
$
|
—
|
|
$
|
9,985
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
5,687
|
|
12
|
|
(173)
|
|
5,526
|
|
|
6,089
|
|
4
|
|
(86)
|
|
6,007
|
Information
technology
|
|
386
|
|
—
|
|
—
|
|
386
|
|
|
419
|
|
—
|
|
—
|
|
419
|
Premises
|
|
343
|
|
—
|
|
—
|
|
343
|
|
|
348
|
|
—
|
|
—
|
|
348
|
Depreciation of fixed
assets
|
|
162
|
|
—
|
|
—
|
|
162
|
|
|
187
|
|
—
|
|
—
|
|
187
|
Amortization and
impairment of intangible assets
|
|
157
|
|
—
|
|
—
|
|
157
|
|
|
704
|
|
—
|
|
—
|
|
704
|
Other general
expenses
|
|
1,036
|
|
—
|
|
—
|
|
1,036
|
|
|
1,272
|
|
—
|
|
—
|
|
1,272
|
Total
operating expenses
|
|
7,771
|
|
12
|
|
(173)
|
|
7,610
|
|
|
9,019
|
|
4
|
|
(86)
|
|
8,937
|
Operating
income
|
|
1,638
|
|
(16)
|
|
173
|
|
1,795
|
|
|
979
|
|
(17)
|
|
86
|
|
1,048
|
Amortization and
impairment of intangible assets
|
|
157
|
|
—
|
|
—
|
|
157
|
|
|
704
|
|
—
|
|
—
|
|
704
|
Restructuring
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
497
|
|
—
|
|
—
|
|
497
|
Regulatory and
compliance matters
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
28
|
|
—
|
|
—
|
|
28
|
Pension
settlement
|
|
220
|
|
—
|
|
(220)
|
|
—
|
|
|
128
|
|
—
|
|
(128)
|
|
—
|
Transaction
costs
|
|
15
|
|
—
|
|
—
|
|
15
|
|
|
—
|
|
—
|
|
—
|
|
—
|
Operating income -
as adjusted
|
|
2,030
|
|
(16)
|
|
(47)
|
|
1,967
|
|
|
2,336
|
|
(17)
|
|
(42)
|
|
2,277
|
Operating margin
from continuing operations - as adjusted
|
|
21.6%
|
|
|
|
20.9%
|
|
|
23.4%
|
|
|
|
22.8%
|
Interest
income
|
|
9
|
|
—
|
|
—
|
|
9
|
|
|
27
|
|
—
|
|
—
|
|
27
|
Interest
expense
|
|
(282)
|
|
—
|
|
—
|
|
(282)
|
|
|
(282)
|
|
—
|
|
—
|
|
(282)
|
Other income
(expense) - as adjusted (3) (4)
|
|
36
|
|
—
|
|
47
|
|
83
|
|
|
(39)
|
|
—
|
|
42
|
|
3
|
Income before
income taxes from continuing operations - as
adjusted
|
|
1,793
|
|
(16)
|
|
—
|
|
1,777
|
|
|
2,042
|
|
(17)
|
|
—
|
|
2,025
|
Income
taxes
|
|
250
|
|
(6)
|
|
|
244
|
|
|
305
|
|
(4)
|
|
|
301
|
Income from
continuing operations - as adjusted
|
|
1,543
|
|
(10)
|
|
—
|
|
1,533
|
|
|
1,737
|
|
(13)
|
|
—
|
|
1,724
|
Less: Net income
attributable to noncontrolling interests
|
|
34
|
|
—
|
|
—
|
|
34
|
|
|
37
|
|
—
|
|
—
|
|
37
|
Net income from
continuing operations attributable to Aon shareholders - as
adjusted
|
|
$
|
1,509
|
|
$
|
(10)
|
|
$
|
—
|
|
$
|
1,499
|
|
|
$
|
1,700
|
|
$
|
(13)
|
|
$
|
—
|
|
$
|
1,687
|
Diluted earnings
per share from continuing operations - as adjusted
|
|
$
|
5.58
|
|
$
|
(0.04)
|
|
$
|
—
|
|
$
|
5.55
|
|
|
$
|
6.52
|
|
$
|
(0.05)
|
|
$
|
—
|
|
$
|
6.47
|
Weighted average
ordinary shares outstanding - diluted
|
|
270.3
|
|
270.3
|
|
270.3
|
|
270.3
|
|
|
260.7
|
|
260.7
|
|
260.7
|
|
260.7
|
|
|
(1)
|
Certain noteworthy
items impacting operating income in 2016 and 2017 are described in
this schedule. The items shown with the caption "as adjusted" are
non-GAAP measures.
|
(2)
|
The historical
periods presented above have been adjusted retrospectively to
reflect changes in accounting guidance related to revenue
recognition and pensions, effective for Aon in the first quarter of
2018.
|
(3)
|
For illustrative
purposes, the impact of the total foreign currency related to the
new revenue accounting guidance is excluded from the Pro Forma
financial statements. Had the Company included it, Other
income (expense) in the Revenue Recognition column would have been
$7 million and $(11) million, respectively, for the years ended
December 31, 2016 and 2017.
|
(4)
|
Other income
(expense) is adjusted to exclude the pension settlement charge
taken within the period. The adjustment was previously taken
within operating income prior to the adoption of the new pension
guidance.
|
Aon
plc Pro Forma Historical Revenue and Organic Revenue
Reconciliation as Adjusted for Changes in Accounting Guidance
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
Mar 31,
2017
|
|
Mar 31,
2016
|
|
%
Change
|
|
Less:
Currency
Impact (1)
|
|
Less:
Fiduciary
Investment
Income
|
|
Less:
Acquisitions,
Divestitures &
Other
|
|
Organic
Revenue
Growth (2)
|
(millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Risk
Solutions
|
|
$
|
989
|
|
$
|
969
|
|
2%
|
|
(2)%
|
|
—%
|
|
2%
|
|
2%
|
Reinsurance
Solutions
|
|
|
671
|
|
|
667
|
|
1
|
|
(3)%
|
|
—%
|
|
—%
|
|
4%
|
Retirement
Solutions
|
|
|
385
|
|
|
396
|
|
(3)
|
|
(4)%
|
|
—%
|
|
(1)%
|
|
2%
|
Health
Solutions
|
|
|
428
|
|
|
338
|
|
27
|
|
(1)%
|
|
—%
|
|
13%
|
|
15%
|
Data & Analytic
Services
|
|
|
273
|
|
|
263
|
|
4
|
|
(1)%
|
|
—%
|
|
(1)%
|
|
6%
|
Elimination
|
|
|
—
|
|
|
(2)
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
Total
revenue
|
|
$
|
2,746
|
|
$
|
2,631
|
|
4%
|
|
(2)%
|
|
—%
|
|
1%
|
|
5%
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
(millions)
|
|
Jun 30,
2017
|
|
Jun 30,
2016
|
|
%
Change
|
|
Less:
Currency
Impact (1)
|
|
Less:
Fiduciary
Investment
Income
|
|
Less:
Acquisitions,
Divestitures &
Other
|
|
Organic
Revenue
Growth (2)
|
Commercial Risk
Solutions
|
|
$
|
1,041
|
|
$
|
990
|
|
5%
|
|
(1)%
|
|
—%
|
|
4%
|
|
2%
|
Reinsurance
Solutions
|
|
345
|
|
335
|
|
3%
|
|
(2)%
|
|
—%
|
|
(1)%
|
|
6%
|
Retirement
Solutions
|
|
388
|
|
405
|
|
(4)%
|
|
(3)%
|
|
—%
|
|
(2)%
|
|
1%
|
Health
Solutions
|
|
281
|
|
253
|
|
11%
|
|
(2)%
|
|
—%
|
|
9%
|
|
4%
|
Data & Analytic
Services
|
|
281
|
|
271
|
|
4%
|
|
(1)%
|
|
—%
|
|
1%
|
|
4%
|
Elimination
|
|
(4)
|
|
(1)
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
Total
revenue
|
|
$
|
2,332
|
|
$
|
2,253
|
|
4%
|
|
(2)%
|
|
—%
|
|
4%
|
|
2%
|
|
|
Three months
ended
|
|
|
|
|
|
|
|
|
|
|
(millions)
|
|
Sep 30,
2017
|
|
Sep 30,
2016
|
|
%
Change
|
|
Less:
Currency
Impact (1)
|
|
Less:
Fiduciary
Investment
Income
|
|
Less:
Acquisitions,
Divestitures &
Other
|
|
Organic
Revenue
Growth (2)
|
Commercial Risk
Solutions
|
|
$
|
915
|
|
$
|
884
|
|
4%
|
|
1%
|
|
—%
|
|
4%
|
|
(1)%
|
Reinsurance
Solutions
|
|
257
|
|
234
|
|
10%
|
|
1%
|
|
1%
|
|
(2)%
|
|
10%
|
Retirement
Solutions
|
|
492
|
|
465
|
|
6%
|
|
1%
|
|
—%
|
|
(1)%
|
|
6%
|
Health
Solutions
|
|
277
|
|
245
|
|
13%
|
|
1%
|
|
—%
|
|
8%
|
|
4%
|
Data & Analytic
Services
|
|
287
|
|
260
|
|
10%
|
|
1%
|
|
—%
|
|
7%
|
|
2%
|
Elimination
|
|
(5)
|
|
(3)
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
Total
revenue
|
|
$
|
2,223
|
|
$
|
2,085
|
|
7%
|
|
1%
|
|
—%
|
|
4%
|
|
2%
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
(millions)
|
|
Dec 31,
2017
|
|
Dec 31,
2016
|
|
%
Change
|
|
Less:
Currency
Impact (1)
|
|
Less:
Fiduciary
Investment
Income
|
|
Less:
Acquisitions,
Divestitures &
Other
|
|
Organic
Revenue
Growth (2)
|
Commercial Risk
Solutions
|
|
$
|
1,218
|
|
$
|
1,088
|
|
12%
|
|
3%
|
|
—%
|
|
4%
|
|
5%
|
Reinsurance
Solutions
|
|
153
|
|
131
|
|
17%
|
|
(3)%
|
|
1%
|
|
(1)%
|
|
20%
|
Retirement
Solutions
|
|
489
|
|
441
|
|
11%
|
|
3%
|
|
—%
|
|
4%
|
|
4%
|
Health
Solutions
|
|
526
|
|
522
|
|
1%
|
|
1%
|
|
—%
|
|
(6)%
|
|
6%
|
Data & Analytic
Services
|
|
299
|
|
256
|
|
17%
|
|
2%
|
|
—%
|
|
3%
|
|
12%
|
Elimination
|
|
(1)
|
|
(2)
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
Total
revenue
|
|
$
|
2,684
|
|
$
|
2,436
|
|
10%
|
|
2%
|
|
—%
|
|
1%
|
|
7%
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
(millions)
|
|
Dec 31,
2017
|
|
Dec 31,
2016
|
|
%
Change
|
|
Less:
Currency
Impact (1)
|
|
Less:
Fiduciary
Investment
Income
|
|
Less:
Acquisitions,
Divestitures &
Other
|
|
Organic
Revenue
Growth (2)
|
Commercial Risk
Solutions
|
|
$
|
4,163
|
|
$
|
3,931
|
|
6%
|
|
—%
|
|
—%
|
|
4%
|
|
2%
|
Reinsurance
Solutions
|
|
1,426
|
|
1,367
|
|
4%
|
|
(2)%
|
|
—%
|
|
—%
|
|
6%
|
Retirement
Solutions
|
|
1,754
|
|
1,707
|
|
3%
|
|
(1)%
|
|
—%
|
|
1%
|
|
3%
|
Health
Solutions
|
|
1,512
|
|
1,358
|
|
11%
|
|
—%
|
|
—%
|
|
4%
|
|
7%
|
Data & Analytic
Services
|
|
1,140
|
|
1,050
|
|
9%
|
|
—%
|
|
—%
|
|
4%
|
|
5%
|
Elimination
|
|
(10)
|
|
(8)
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
Total
revenue
|
|
$
|
9,985
|
|
$
|
9,405
|
|
6%
|
|
—%
|
|
—%
|
|
2%
|
|
4%
|
|
|
(1)
|
Currency impact is
determined by translating last year's revenue at this year's
foreign exchange rates.
|
(2)
|
Organic revenue
growth includes the impact of intercompany activity and excludes
the impact of foreign exchange rate changes, acquisitions,
divestitures, transfers between business units, and fiduciary
investment income.
|
View original
content:http://www.prnewswire.com/news-releases/aon-reports-fourth-quarter-and-full-year-2017-results-300592442.html
SOURCE Aon plc