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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 10-Q
 
     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2022
 
OR
 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
Commission file number 1-7933

Aon plc
(Exact Name of Registrant as Specified in Its Charter)
 
IRELAND 98-1539969
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
Metropolitan Building, James Joyce Street, Dublin 1, Ireland                  D01 K0Y8
     (Address of principal executive offices)                      (Zip Code)

+353 1 266 6000
(Registrant’s Telephone Number,
Including Area Code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange
on which registered
Class A Ordinary Shares $0.01 nominal valueAONNew York Stock Exchange
Guarantees of Aon plc’s 4.00% Senior Notes due 2023AON23New York Stock Exchange
Guarantees of Aon plc’s 3.50% Senior Notes due 2024AON24New York Stock Exchange
Guarantees of Aon plc’s 3.875% Senior Notes due 2025AON25New York Stock Exchange
Guarantees of Aon plc’s 2.875% Senior Notes due 2026AON26New York Stock Exchange
Guarantees of Aon Corporation and Aon Global Holdings plc’s 2.85% Senior Notes due 2027
AON27New York Stock Exchange
Guarantees of Aon Corporation and Aon Global Holdings
plc’s 2.05% Senior Notes due 2031
AON31New York Stock Exchange
Guarantees of Aon Corporation and Aon Global Holdings
plc’s 2.60% Senior Notes due 2031
AON31ANew York Stock Exchange
Guarantees of Aon plc’s 4.25% Senior Notes due 2042AON42New York Stock Exchange
Guarantees of Aon plc’s 4.45% Senior Notes due 2043AON43New York Stock Exchange
Guarantees of Aon plc’s 4.60% Senior Notes due 2044AON44New York Stock Exchange
Guarantees of Aon plc’s 4.75% Senior Notes due 2045AON45New York Stock Exchange
Guarantees of Aon Corporation and Aon Global Holdings
plc’s 2.90% Senior Notes due 2051
AON51New York Stock Exchange
Guarantees of Aon Corporation and Aon Global Holdings
plc’s 3.90% Senior Notes due 2052
AON52New York Stock Exchange
 
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes    No 
 



Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes    No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer Accelerated filer
Non-accelerated filer Smaller reporting company
 Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes No
 
Number of class A ordinary shares of Aon plc, $0.01 nominal value, outstanding as of April 28, 2022: 212,383,902






INFORMATION CONCERNING FORWARD-LOOKING STATEMENTS 
This report contains 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 represent management’s expectations or forecasts of future events. Forward-looking statements are typically identified by words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “project,” “intend,” “plan,” “probably,” “potential,” “looking forward,” “continue,” 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, dispositions, and other significant transactions or the termination thereof; litigation and regulatory matters; pension obligations; cash flow and liquidity; expected effective tax rate; potential changes in laws or 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. Potential factors, which may be revised or supplemented in subsequent reports filed or furnished with the Securities and Exchange Commission (the “SEC”), that could impact results include:
changes in the competitive environment or damage to our reputation;
fluctuations in currency exchange, interest or inflation rates that could impact our financial condition or results;
changes in global equity and fixed income markets that could affect the return on invested assets;
changes in the funded status of our various defined benefit pension plans and the impact of any increased pension funding resulting from those changes;
the level of our debt and the terms thereof reducing our flexibility or increasing borrowing costs;
rating agency actions that could limit our access to capital and our competitive position;
our global tax rate being subject to a variety of different factors, which could create volatility in that tax rate;
changes in our accounting estimates and assumptions on our financial statements;
limits on our subsidiaries’ ability to pay dividends or otherwise make payments to us;
the impact of legal proceedings and other contingencies, including those arising from acquisition or disposition transactions, errors and omissions and other claims against us;
the impact of, and potential challenges in complying with, laws and regulations of the jurisdictions in which we operate, particularly given the global nature of operations and the possibility of differing or conflicting laws and regulations, or the application or interpretation thereof, across such jurisdictions;
the impact of any regulatory investigations brought in Ireland, the United Kingdom (the “U.K.”), the United States (the “U.S.”) and other countries;
failure to protect intellectual property rights or allegations that we have infringed on the intellectual property rights of others;
general economic and political conditions in the countries in which we do business around the world, including the withdrawal of the U.K. from the European Union (the “E.U.”);
the failure to retain, attract and develop experienced and qualified personnel;
international risks associated with our global operations, including impacts from military conflicts or political instability, such as the ongoing Russian war in Ukraine;
the effects of natural or man-made disasters, including the effects of the COVID-19 and other health pandemics and the impacts of climate change;
any system or network disruption or breach resulting in operational interruption or improper disclosure of confidential, personal, or proprietary data, and resulting damage to our reputation;



our ability to develop, implement, update and enhance new technology;
the actions taken by third parties that perform aspects of our business operations and client services;
the extent to which we are exposed to certain risks, including lawsuits, related to our actions we may take in being responsible for making decisions on behalf of clients in our investment consulting business or in other advisory services that we currently provide, or will provide in the future;
our ability to continue, and the costs and risks associated with, growing, developing and integrating acquired business, and entering into new lines of business or products;
our ability to secure regulatory approval and complete transactions, and the costs and risks associated with the failure to consummate proposed transactions;
changes in commercial property and casualty markets, commercial premium rates or methods of compensation;
our ability to implement initiatives intended to yield cost savings and the ability to achieve those cost savings; and
the effects of Irish law on our operating flexibility and the enforcement of judgments against us.
Any or all of our forward-looking statements may turn out to be inaccurate, and there are no guarantees about our 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. Accordingly, readers should not place undue reliance on forward-looking statements, which speak only as of the dates on which they are made. We are under no (and expressly disclaim any) obligation to update or alter any forward-looking statement that we may make from time to time, whether as a result of new information, future events, or otherwise. Further information about factors that could materially affect Aon, including our results of operations and financial condition, is contained in the “Risk Factors” section in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2021.
These factors may be revised or supplemented in our subsequent periodic filings with the SEC.



Table of Contents




The below definitions apply throughout this report unless the context requires otherwise:
TermDefinition
AGIAllianz Global Investors U.S. LLC
CCCChristchurch City Council
CODMChief Operating Decision Maker
DCFDiscounted Cash Flow
E&OErrors and Omissions
EBITDAEarnings before Interest, Taxes, Depreciation, and Amortization
ERISAEmployee Retirement Income Security Act of 1974
ESGEnvironmental, Social, and Governance
E.U.European Union
FCAFinancial Conduct Authority
GAAPGenerally Accepted Accounting Principles
LOCLetter of Credit
NEBCNational Employee Benefits Committee
PSAPerformance Share Awards
RSURestricted Share Units
SECSecurities and Exchange Commission
U.K.United Kingdom
U.S.United States
WTWWillis Towers Watson Public Limited Company



Part I Financial Information
Item 1. Financial Statements

Aon plc
Condensed Consolidated Statements of Income
(Unaudited)
 Three Months Ended March 31,
(millions, except per share data)20222021
Revenue  
Total revenue$3,670 $3,525 
Expenses 
Compensation and benefits1,767 1,719 
Information technology123 114 
Premises72 77 
Depreciation of fixed assets38 41 
Amortization and impairment of intangible assets28 40 
Other general expense275 289 
Total operating expenses2,303 2,280 
Operating income 1,367 1,245 
Interest income3 3 
Interest expense(91)(79)
Other income (expense)25 (2)
Income before income taxes1,304 1,167 
Income tax expense256 234 
Net income 1,048 933 
Less: Net income attributable to noncontrolling interests25 20 
Net income attributable to Aon shareholders$1,023 $913 
Basic net income per share attributable to Aon shareholders$4.75 $4.02 
Diluted net income per share attributable to Aon shareholders$4.73 $4.00 
Weighted average ordinary shares outstanding - basic215.3 227.1 
Weighted average ordinary shares outstanding - diluted216.4 228.1 
See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).
6


Aon plc
Condensed Consolidated Statements of Comprehensive Income
(Unaudited) 
 Three Months Ended March 31,
(millions)20222021
Net income $1,048 $933 
Less: Net income attributable to noncontrolling interests25 20 
Net income attributable to Aon shareholders1,023 913 
Other comprehensive income (loss), net of tax:  
Change in fair value of financial instruments1 11 
Foreign currency translation adjustments(7)(70)
Postretirement benefit obligation33 29 
Total other comprehensive income (loss)27 (30)
Less: Other comprehensive income (loss) attributable to noncontrolling interests(1) 
Total other comprehensive income (loss) attributable to Aon shareholders28 (30)
Comprehensive income attributable to Aon shareholders$1,051 $883 
See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).
7


Aon plc
Condensed Consolidated Statements of Financial Position
(Unaudited)
(millions, except nominal value)March 31,
2022
December 31,
2021
Assets  
Current assets  
Cash and cash equivalents$595 $544 
Short-term investments455 292 
Receivables, net3,625 3,094 
Fiduciary assets
15,277 14,386 
Other current assets593 716 
Total current assets20,545 19,032 
Goodwill8,496 8,434 
Intangible assets, net530 492 
Fixed assets, net515 529 
Operating lease right-of-use assets754 786 
Deferred tax assets770 766 
Prepaid pension1,361 1,366 
Other non-current assets520 512 
Total assets$33,491 $31,917 
Liabilities and equity  
Liabilities  
Current liabilities  
Accounts payable and accrued liabilities$1,728 $2,192 
Short-term debt and current portion of long-term debt599 1,164 
Fiduciary liabilities15,277 14,386 
Other current liabilities1,585 1,331 
Total current liabilities19,189 19,073 
Long-term debt9,685 8,228 
Non-current operating lease liabilities736 772 
Deferred tax liabilities399 401 
Pension, other postretirement, and postemployment liabilities1,320 1,375 
Other non-current liabilities871 910 
Total liabilities32,200 30,759 
Equity  
Ordinary shares - $0.01 nominal value
     Authorized: 500.0 shares (issued: 2022 - 212.9; 2021 - 214.8)
2 2 
Additional paid-in capital6,627 6,624 
Accumulated deficit(1,609)(1,694)
Accumulated other comprehensive loss(3,843)(3,871)
Total Aon shareholders' equity1,177 1,061 
Noncontrolling interests114 97 
Total equity1,291 1,158 
Total liabilities and equity$33,491 $31,917 
See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).
8


Aon plc
Condensed Consolidated Statements of Shareholders’ Equity
(Unaudited) 
(millions)SharesOrdinary
Shares and
Additional
Paid-in Capital
Retained
Earnings (Accumulated Deficit)
Accumulated 
Other
Comprehensive
Loss, Net of Tax
Non-
controlling
Interests
Total
Balance at January 1, 2022214.8 $6,626 $(1,694)$(3,871)$97 $1,158 
Net income— — 1,023 — 25 1,048 
Shares issued - employee stock compensation plans0.9 (116)— — — (116)
Shares purchased(2.8)— (828)— — (828)
Share-based compensation expense— 119 — — — 119 
Dividends to shareholders ($0.51 per share)
— — (110)— — (110)
Net change in fair value of financial instruments— — — 1 — 1 
Net foreign currency translation adjustments— — — (6)(1)(7)
Net postretirement benefit obligation— — — 33 — 33 
Dividends paid to noncontrolling interests on subsidiary common stock— — — — (7)(7)
Balance at March 31, 2022212.9 $6,629 $(1,609)$(3,843)$114 $1,291 
 
(millions)SharesOrdinary
Shares and
Additional
Paid-in Capital
Retained
Earnings (Accumulated Deficit)
Accumulated 
Other
Comprehensive
Loss, Net of Tax
Non-
controlling
Interests
Total
Balance at January 1, 2021225.5 $6,314 $1,042 $(3,861)$88 $3,583 
Net income— — 913 — 20 933 
Shares issued - employee stock compensation plans0.9 (87)— — — (87)
Shares purchased(0.2)— (50)— — (50)
Share-based compensation expense— 131 — — — 131 
Dividends to shareholders ($0.46 per share)
— — (104)— — (104)
Net change in fair value of financial instruments— — — 11 — 11 
Net foreign currency translation adjustments— — — (70)— (70)
Net postretirement benefit obligation— — — 29 — 29 
Purchases of subsidiary shares from noncontrolling interests— (8)— — (6)(14)
Dividends paid to noncontrolling interests on subsidiary common stock— — — — (1)(1)
Balance at March 31, 2021226.2 $6,350 $1,801 $(3,891)$101 $4,361 
See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).
9


Aon plc
Condensed Consolidated Statements of Cash Flows
(Unaudited)
 Three Months Ended March 31,
(millions)20222021
Cash flows from operating activities  
Net income$1,048 $933 
Adjustments to reconcile net income to cash provided by operating activities:  
Gain from sales of businesses(25) 
Depreciation of fixed assets38 41 
Amortization and impairment of intangible assets28 40 
Share-based compensation expense119 131 
Deferred income taxes(18)19 
Change in assets and liabilities:  
Receivables, net(544)(485)
Accounts payable and accrued liabilities(449)(356)
Current income taxes153 142 
Pension, other postretirement and postemployment liabilities(27)(59)
Other assets and liabilities140 155 
Cash provided by operating activities463 561 
Cash flows from investing activities  
Proceeds from investments45 11 
Payments for investments(9)(18)
Net sales (purchases) of short-term investments - non fiduciary(164)138 
Acquisition of businesses, net of cash and funds held on behalf of clients(134) 
Sale of businesses, net of cash and funds held on behalf of clients22  
Capital expenditures(23)(29)
Cash provided by (used for) investing activities(263)102 
Cash flows from financing activities  
Share repurchase(828)(50)
Issuance of shares for employee benefit plans(116)(87)
Issuance of debt3,128 250 
Repayment of debt(2,208)(650)
Increase in fiduciary liabilities, net of fiduciary receivables647 28 
Cash dividends to shareholders(110)(104)
Noncontrolling interests and other financing activities(13)(68)
Cash provided by (used for) financing activities500 (681)
Effect of exchange rates on cash and cash equivalents and funds held on behalf of clients(50)(34)
Net increase (decrease) in cash and cash equivalents and funds held on behalf of clients650 (52)
Cash, cash equivalents and funds held on behalf of clients at beginning of period6,645 6,573 
Cash, cash equivalents and funds held on behalf of clients at end of period$7,295 $6,521 
Reconciliation of cash and cash equivalents and funds held on behalf of clients:
Cash and cash equivalents$595 $822 
Funds held on behalf of clients6,700 5,699 
Total cash and cash equivalents and funds held on behalf of clients$7,295 $6,521 
Supplemental disclosures:  
Interest paid$22 $36 
Income taxes paid, net of refunds$121 $74 
See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).
10


Notes to Condensed Consolidated Financial Statements (Unaudited)
1. Basis of Presentation
The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with U.S. GAAP. The Condensed Consolidated Financial Statements include the accounts of Aon plc and all of its controlled subsidiaries (“Aon” or the “Company”). Intercompany accounts and transactions have been eliminated. The 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 disclosures normally included in the Financial Statements prepared in accordance with U.S. GAAP have been condensed or omitted. The 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, 2021. The results for the three months ended March 31, 2022 are not necessarily indicative of operating results that may be expected for the full year ending December 31, 2022, particularly in light of the continuing effect of the COVID-19 pandemic.
Use of Estimates
The preparation of the accompanying 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, the disclosures of contingent assets and liabilities at the date of the Condensed Consolidated Financial Statements, and the reported amounts of reserves and expenses. These estimates and assumptions are based on management’s best estimates and judgments. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment. Management believes its estimates to be reasonable given the current facts available. Aon adjusts such estimates and assumptions when facts and circumstances dictate. Illiquid credit markets, volatile equity markets, foreign currency exchange rate movements, and the COVID-19 pandemic increase the uncertainty inherent in such estimates and assumptions. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in estimates resulting from continuing changes in the economic environment would, if applicable, be reflected in the Condensed Consolidated Financial Statements in future periods.
Revision of Previously Issued Financial Statements
During the fourth quarter of 2021, the Company identified and corrected an immaterial presentation error related to Funds held on behalf of clients in the Condensed Consolidated Statements of Cash Flows. The Company made appropriate revisions to its Condensed Consolidated Statements of Cash Flows for historical periods. Further information is contained in Note 1 “Basis of Presentation” of the Notes to Consolidated Financial Statements in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2021.
2. Accounting Principles and Practices
All issued, but not yet effective, guidance has been deemed not applicable or not significant to the Condensed Consolidated Financial Statements.
3. Revenue from Contracts with Customers
Disaggregation of Revenue
The following table summarizes revenue from contracts with customers by principal service line (in millions):
Three Months Ended March 31,
20222021
Commercial Risk Solutions$1,719 $1,640 
Reinsurance Solutions976 922 
Health Solutions638 615 
Wealth Solutions345 355 
Eliminations(8)(7)
Total revenue$3,670 $3,525 
11


Consolidated revenue from contracts with customers by geographic area, which is attributed on the basis of where the services are performed, is as follows (in millions):
Three Months Ended March 31,
20222021
United States$1,417 $1,308 
Americas other than United States276 250 
United Kingdom528 530 
Ireland29 33 
Europe, Middle East, & Africa other than United Kingdom and Ireland1,058 1,091 
Asia Pacific362 313 
Total revenue$3,670 $3,525 
Contract Costs
An analysis of the changes in the net carrying amount of costs to fulfill contracts with customers are as follows (in millions):
Three Months Ended March 31,
20222021
Balance at beginning of period$361 $339 
Additions348 346 
Amortization(457)(443)
Impairment  
Foreign currency translation and other2 (1)
Balance at end of period$254 $241 
An analysis of the changes in the net carrying amount of costs to obtain contracts with customers are as follows (in millions):
Three Months Ended March 31,
20222021
Balance at beginning of period$179 $184 
Additions15 13 
Amortization(12)(12)
Impairment  
Foreign currency translation and other2  
Balance at end of period$184 $185 

4. Cash and Cash Equivalents and Short-Term Investments
Cash and cash equivalents include cash balances and all highly liquid instruments with initial maturities of three months or less. Short-term investments consist of money market funds. The estimated fair value of Cash and cash equivalents and Short-term investments approximates their carrying values.
At March 31, 2022, Cash and cash equivalents and Short-term investments were $1,050 million compared to $836 million at December 31, 2021, an increase of $214 million. Of the total balances, $163 million and $160 million were restricted as to their use at March 31, 2022 and December 31, 2021, respectively. Included within Short-term investments as of March 31, 2022 and December 31, 2021, were £84.3 million ($111.1 million at March 31, 2022 exchange rates and $112.8 million at December 31, 2021 exchange rates) of operating funds required to be held by the Company in the U.K. by the FCA, a U.K.-based regulator.
12


5. Other Financial Data
Condensed Consolidated Statements of Income Information
Other Income (Expense)
Other income (expense) consists of the following (in millions):
Three Months Ended March 31,
20222021
Foreign currency remeasurement$(28)$4 
Pension and other postretirement(3)6 
Equity earnings1 1 
Gain from sales of businesses25  
Financial instruments and other30 (13)
Total
$25 $(2)
Condensed Consolidated Statements of Financial Position Information
Allowance for Doubtful Accounts
Changes in the net carrying amount of allowance for doubtful accounts are as follows (in millions):
Three Months Ended March 31,
20222021
Balance at beginning of period$90 $98 
Provision6 6 
Accounts written off, net of recoveries(3)(4)
Foreign currency translation and other 1 
Balance at end of period$93 $101 
Other Current Assets
The components of Other current assets are as follows (in millions):
As ofMarch 31,
2022
December 31,
2021
Costs to fulfill contracts with customers (1)
$254 $361 
Prepaid expenses132 137 
Taxes receivable48 53 
Other159 165 
Total$593 $716 
(1)Refer to Note 3 “Revenue from Contracts with Customers” for further information.
Other Non-Current Assets
The components of Other non-current assets are as follows (in millions):
As of March 31,
2022
December 31,
2021
Costs to obtain contracts with customers (1)
$184 $179 
Taxes receivable93 95 
Leases57 63 
Investments62 64 
Other124 111 
Total$520 $512 
(1)Refer to Note 3 “Revenue from Contracts with Customers” for further information.
13


Other Current Liabilities
The components of Other current liabilities are as follows (in millions):
As ofMarch 31,
2022
December 31,
2021
Deferred revenue (1)
$323 $321 
Taxes payable269 149 
Leases207 213 
Other786 648 
Total
$1,585 $1,331 
(1)During the three months ended March 31, 2022, revenue of $203 million was recognized in the Condensed Consolidated Statements of Income. During the three months ended March 31, 2021, revenue of $171 million was recognized in the Condensed Consolidated Statements of Income.
Other Non-Current Liabilities
The components of Other non-current liabilities are as follows (in millions):
As ofMarch 31,
2022
December 31,
2021
Taxes payable (1)
$631 $609 
Leases42 46 
Deferred revenue34 70 
Compensation and benefits57 58 
Other107 127 
Total
$871 $910 
(1)Includes $145 million for the non-current portion of the one-time mandatory transition tax on accumulated foreign earnings as of March 31, 2022 and December 31, 2021.

6. Acquisitions and Dispositions of Businesses
Completed Acquisitions
The Company completed one acquisition during the three months ended March 31, 2022 and no acquisitions during the three months ended March 31, 2021. The following table includes the preliminary fair values of consideration transferred, assets acquired, and liabilities assumed as a result of the Company’s acquisition (in millions):
March 31,
2022
Consideration transferred
Cash$134 
Deferred and contingent consideration3 
Aggregate consideration transferred$137 
Assets acquired
Goodwill74 
Intangible assets65 
Other assets6 
Total assets acquired145 
Liabilities assumed:
Total liabilities assumed8 
Net assets acquired$137 
The results of operations of this acquisition are included in the Condensed Consolidated Financial Statements as of the acquisition date. The Company’s results of operations would not have been materially different if this acquisition had been reported from the beginning of the period in which it was acquired.
14


2022 Acquisitions
On March 1, 2022, the Company completed the acquisition of Tyche, an actuarial software platform based in the U.K.
2021 Acquisitions
On December 22, 2021, the Company completed the acquisition of 100% of the share capital of For Welfare S.r.l, a company focused on bancassurance programs in Italy.
On September 1, 2021, the Company completed the acquisition of the remaining 51% of Aon India Insurance Brokers Limited (formerly known as Anviti Insurance Brokers Private Limited). Prior to the acquisition date, the Company accounted for its 49% interest in Anviti as an equity-method investment. The acquisition-date fair value of the previous equity interest was $15 million and was included in the measurement of consideration transferred. There was no significant impact as a result of remeasuring the carrying value of the Company’s prior equity interest in Anviti held before the business combination.
Completed Dispositions
The Company completed two dispositions during the three months ended March 31, 2022 and no dispositions during the three months ended March 31, 2021.
The pretax gains recognized related to dispositions were $25 million for the three months ended March 31, 2022. There were no pretax gains recognized related to dispositions for the three months ended March 31, 2021. Gains recognized as a result of a disposition are included in Other income in the Condensed Consolidated Statements of Income.
7. Goodwill and Other Intangible Assets
The changes in the net carrying amount of goodwill for the three months ended March 31, 2022 are as follows (in millions):
Balance as of December 31, 2021$8,434 
Goodwill related to current year acquisitions74 
Goodwill related to disposals(7)
Foreign currency translation and other(5)
Balance as of March 31, 2022$8,496 
Other intangible assets by asset class are as follows (in millions):
 March 31, 2022December 31, 2021
 Gross Carrying AmountAccumulated
Amortization and Impairment
Net Carrying AmountGross Carrying AmountAccumulated
Amortization and Impairment
Net Carrying Amount
Customer-related and contract-based$2,307 $1,866 $441 $2,289 $1,848 $441 
Tradenames 14 14  14 13 1 
Technology and other447 358 89 407 357 50 
Total$2,768 $2,238 $530 $2,710 $2,218 $492 
The estimated future amortization for finite-lived intangible assets as of March 31, 2022 is as follows (in millions):
Remainder of 2022$81 
202397 
202482 
202569 
202648 
202733 
Thereafter120 
Total$530 
15


8. Debt
Notes
On February 28, 2022, Aon Corporation, a Delaware corporation, and Aon Global Holdings plc, a public limited company formed under the laws of England and Wales, both wholly owned subsidiaries of the Company, co-issued $600 million of 2.85% Senior Notes due May 2027 and $900 million of 3.90% Senior Notes due February 2052. The Company intends to use the net proceeds from the offering for general corporate purposes.
On December 2, 2021, Aon Corporation and Aon Global Holdings plc, co-issued $500 million of 2.60% Senior Notes set to mature on December 2, 2031. The Company intends to use the net proceeds of the offering for general corporate purposes.
In November 2021, the Company’s $500 million 2.20% Senior Notes due November 2022 were classified as Short-term debt and current portion of long-term debt in the Condensed Consolidated Statements of Financial Position as the date of maturity was within one year.
On August 23, 2021, Aon Corporation and Aon Global Holdings plc, co-issued $400 million of 2.05% Senior Notes due August 2031 and $600 million of 2.90% Senior Notes due August 2051. The Company intends to use the net proceeds of the offering for general corporate purposes.
On January 13, 2021, Aon Global Limited, a limited company organized under the laws of England and Wales and a wholly owned subsidiary of the Company, issued an irrevocable notice of redemption to holders of its 2.80% Senior Notes for the redemption of all $400 million outstanding aggregate principal amount of the notes, which were set to mature in March 2021 and classified as Short-term debt and current portion of long-term debt as of December 31, 2020. The redemption date was on February 16, 2021 and resulted in an insignificant loss due to extinguishment.
Revolving Credit Facilities
As of March 31, 2022, Aon had two primary committed credit facilities outstanding: its $1.0 billion multi-currency U.S. credit facility expiring in September 2026 and its $750 million multi-currency U.S. credit facility expiring in October 2023. In aggregate, these two facilities provide $1.75 billion in available credit.
Each of these primary committed credit facilities includes customary representations, warranties, and covenants, including financial covenants that require Aon to maintain specified ratios of adjusted consolidated EBITDA to consolidated interest expense and consolidated debt to adjusted consolidated EBITDA, in each case, tested quarterly. At March 31, 2022, Aon did not have borrowings under either of these primary committed credit facilities, and was in compliance with the financial covenants and all other covenants contained therein during the rolling 12 months ended March 31, 2022.
Commercial Paper
Aon Corporation has established a U.S. commercial paper program (the “U.S. Program”) and Aon Global Holdings plc has established a European multi-currency commercial paper program (the “European Program” and, together with the U.S. Program, the “Commercial Paper Programs”). Commercial paper may be issued in aggregate principal amounts of up to $1 billion under the U.S. Program and €625 million ($686 million at March 31, 2022 exchange rates) under the European Program, not to exceed the amount of the Company’s committed credit facilities, which was $1.75 billion at March 31, 2022. The U.S. Program is fully and unconditionally guaranteed by Aon plc, Aon Global Limited, and Aon Global Holdings plc and the European Program is fully and unconditionally guaranteed by Aon plc, Aon Global Limited, and Aon Corporation.
Commercial paper outstanding, which is included in Short-term debt and current portion of long-term debt in the Condensed Consolidated Statements of Financial Position, is as follows (in millions):
March 31, 2022December 31, 2021
Commercial paper outstanding$100 $665 
The weighted average commercial paper outstanding and its related interest rates are as follows (in millions, except percentages):
Three Months Ended March 31,
20222021
Weighted average commercial paper outstanding$571 $17 
Weighted average interest rate of commercial paper outstanding(0.16)%0.19 %
16


9. Income Taxes
The effective tax rate on Net income was 19.6% for the three months ended March 31, 2022. The effective tax rate on Net income was 20.1% for the three months ended March 31, 2021.
For the three months ended March 31, 2022 and March 31, 2021, the tax rate was primarily driven by the geographical distribution of income and certain discrete items, primarily the favorable impacts of share-based payments.
10. Shareholders’ Equity
Ordinary Shares
Aon has a share repurchase program authorized by the Company’s Board of Directors (the “Repurchase Program”). The Repurchase Program was established in April 2012 with $5.0 billion in authorized repurchases, and was increased by $5.0 billion in authorized repurchases in each of November 2014, June 2017, November 2020, and by $7.5 billion in February 2022 for a total of $27.5 billion in repurchase authorizations.
Under the Repurchase Program, the Company’s class A ordinary shares may be repurchased through the open market or in privately negotiated transactions, from time to time, based on prevailing market conditions, and will be funded from available capital.
The following table summarizes the Company’s share repurchase activity (in millions, except per share data):
Three Months Ended March 31,
20222021
Shares repurchased2.8 0.2 
Average price per share$294.47 $217.70 
Repurchase costs recorded to retained earnings
$828 $50 
At March 31, 2022, the remaining authorized amount for share repurchases under the Repurchase Program was approximately $8.4 billion. Under the Repurchase Program, the Company has repurchased a total of 152.4 million shares for an aggregate cost of approximately $19.1 billion.
Weighted Average Ordinary Shares
Weighted average ordinary shares outstanding are as follows (in millions):
 Three Months Ended March 31,
 20222021
Basic weighted average ordinary shares outstanding215.3 227.1 
Dilutive effect of potentially issuable shares1.1 1.0 
Diluted weighted average ordinary shares outstanding216.4 228.1 
Potentially issuable shares are not included in the computation of Diluted net income per share attributable to Aon shareholders if their inclusion would be antidilutive. There were 0.9 million shares excluded from the calculation for the three months ended March 31, 2022 and 0.1 million shares excluded from the calculation for the three months ended March 31, 2021.

17


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 Financial Instruments (1)
Foreign Currency Translation Adjustments
Postretirement Benefit Obligation (2)
Total
Balance at December 31, 2021$2 $(1,333)$(2,540)(3,871)
Other comprehensive income (loss) before reclassifications, net (6)10 4 
Amounts reclassified from accumulated other comprehensive income
Amounts reclassified from accumulated other comprehensive income1  31 32 
Tax expense  (8)(8)
Amounts reclassified from accumulated other comprehensive income, net (3)
1  23 24 
Net current period other comprehensive income (loss)
1 (6)33 28 
Balance at March 31, 2022$3 $(1,339)$(2,507)$(3,843)
 
Change in Fair Value of Financial Instruments (1)
Foreign Currency Translation Adjustments
Postretirement Benefit Obligation (2)
Total
Balance at December 31, 2020$1 $(1,045)