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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 JUNE 30, 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 July 28, 2022: 210,925,557






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; expected foreign currency translation impacts; 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, due to macroeconomic conditions or otherwise, 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 liabilities or 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
AUMAssets Under Management
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
FASBFinancial Accounting Standards Board
FCAFinancial Conduct Authority
GAAPGenerally Accepted Accounting Principles
LOCLetter of Credit
NEBCNational Employee Benefits Committee
P&CProperty and Casualty
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 June 30,Six Months Ended June 30,
(millions, except per share data)2022202120222021
Revenue    
Total revenue$2,983 $2,886 $6,653 $6,411 
Expenses  
Compensation and benefits1,639 1,628 3,406 3,347 
Information technology115 115 238 229 
Premises73 76 145 153 
Depreciation of fixed assets40 41 78 82 
Amortization and impairment of intangible assets25 36 53 76 
Other general expense391 318 666 607 
Total operating expenses2,283 2,214 4,586 4,494 
Operating income 700 672 2,067 1,917 
Interest income5 3 8 6 
Interest expense(102)(78)(193)(157)
Other income (expense)30 (1)55 (3)
Income before income taxes633 596 1,937 1,763 
Income tax expense119 203 375 437 
Net income 514 393 1,562 1,326 
Less: Net income attributable to noncontrolling interests13 14 38 34 
Net income attributable to Aon shareholders$501 $379 $1,524 $1,292 
Basic net income per share attributable to Aon shareholders$2.35 $1.67 $7.11 $5.69 
Diluted net income per share attributable to Aon shareholders$2.33 $1.66 $7.07 $5.66 
Weighted average ordinary shares outstanding - basic213.3 227.0 214.3 227.0 
Weighted average ordinary shares outstanding - diluted214.7 228.0 215.6 228.1 
See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).
6


Aon plc
Condensed Consolidated Statements of Comprehensive Income
(Unaudited) 
 Three Months Ended June 30,Six Months Ended June 30,
(millions)2022202120222021
Net income $514 $393 $1,562 $1,326 
Less: Net income attributable to noncontrolling interests13 14 38 34 
Net income attributable to Aon shareholders501 379 1,524 1,292 
Other comprehensive income (loss), net of tax:    
Change in fair value of financial instruments(9)(1)(8)10 
Foreign currency translation adjustments(436)115 (443)45 
Postretirement benefit obligation28 33 61 62 
Total other comprehensive income (loss)(417)147 (390)117 
Less: Other comprehensive loss attributable to noncontrolling interests  (1) 
Total other comprehensive income (loss) attributable to Aon shareholders(417)147 (389)117 
Comprehensive income attributable to Aon shareholders$84 $526 $1,135 $1,409 
See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).
7


Aon plc
Condensed Consolidated Statements of Financial Position
(Unaudited)
(millions, except nominal value)June 30,
2022
December 31,
2021
Assets  
Current assets  
Cash and cash equivalents$740 $544 
Short-term investments243 292 
Receivables, net3,648 3,094 
Fiduciary assets
16,864 14,386 
Other current assets672 716 
Total current assets22,167 19,032 
Goodwill8,295 8,434 
Intangible assets, net491 492 
Fixed assets, net505 529 
Operating lease right-of-use assets704 786 
Deferred tax assets771 766 
Prepaid pension1,284 1,366 
Other non-current assets503 512 
Total assets$34,720 $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 debt739 1,164 
Fiduciary liabilities16,864 14,386 
Other current liabilities1,746 1,331 
Total current liabilities21,077 19,073 
Long-term debt9,666 8,228 
Non-current operating lease liabilities691 772 
Deferred tax liabilities364 401 
Pension, other postretirement, and postemployment liabilities1,277 1,375 
Other non-current liabilities857 910 
Total liabilities33,932 30,759 
Equity  
Ordinary shares - $0.01 nominal value
     Authorized: 500.0 shares (issued: 2022 - 211.6; 2021 - 214.8)
2 2 
Additional paid-in capital6,669 6,624 
Accumulated deficit(1,727)(1,694)
Accumulated other comprehensive loss(4,260)(3,871)
Total Aon shareholders' equity684 1,061 
Noncontrolling interests104 97 
Total equity788 1,158 
Total liabilities and equity$34,720 $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 
Net income— — 501 — 13 514 
Shares issued - employee stock compensation plans0.4 (50)— — — (50)
Shares purchased(1.7)— (500)— — (500)
Share-based compensation expense— 92 — — — 92 
Dividends to shareholders ($0.56 per share)
— — (119)— — (119)
Net change in fair value of financial instruments— — — (9)— (9)
Net foreign currency translation adjustments— — — (436)— (436)
Net postretirement benefit obligation— — — 28 — 28 
Dividends paid to noncontrolling interests on subsidiary common stock— — — — (23)(23)
Balance at June 30, 2022211.6 $6,671 $(1,727)$(4,260)$104 $788 
9


 
(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 
Net income— — 379 — 14 393 
Shares issued - employee stock compensation plans0.5 (52)— — — (52)
Shares purchased(1.1)— (242)— — (242)
Share-based compensation expense— 85 — — — 85 
Dividends to shareholders ($0.51 per share)
— — (115)— — (115)
Net change in fair value of financial instruments— — — (1)— (1)
Net foreign currency translation adjustments— — — 115 — 115 
Net postretirement benefit obligation— — — 33 — 33 
Dividends paid to noncontrolling interests on subsidiary common stock— — — — (10)(10)
Balance at June 30, 2021225.6 $6,383 $1,823 $(3,744)$105 $4,567 
See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).
10


Aon plc
Condensed Consolidated Statements of Cash Flows
(Unaudited)
 Six Months Ended June 30,
(millions)20222021
Cash flows from operating activities  
Net income$1,562 $1,326 
Adjustments to reconcile net income to cash provided by operating activities:  
Gain from sales of businesses(47)(1)
Depreciation of fixed assets78 82 
Amortization and impairment of intangible assets53 76 
Share-based compensation expense211 216 
Deferred income taxes(36)115 
Change in assets and liabilities:  
Receivables, net(674)(477)
Accounts payable and accrued liabilities(408)(295)
Current income taxes137 83 
Pension, other postretirement and postemployment liabilities(36)(80)
Other assets and liabilities291 300 
Cash provided by operating activities1,131 1,345 
Cash flows from investing activities  
Proceeds from investments65 41 
Payments for investments(39)(29)
Net purchases of short-term investments - non fiduciary38 22 
Acquisition of businesses, net of cash and funds held on behalf of clients(143) 
Sale of businesses, net of cash and funds held on behalf of clients22 9 
Capital expenditures(68)(70)
Cash used for investing activities(125)(27)
Cash flows from financing activities  
Share repurchase(1,328)(292)
Issuance of shares for employee benefit plans(166)(140)
Commercial paper issuances, net of repayments(409) 
Issuance of debt1,471 13 
Repayment of debt (400)
Increase in fiduciary liabilities, net of fiduciary receivables661 386 
Cash dividends to shareholders(229)(219)
Noncontrolling interests and other financing activities(37)(84)
Cash used for financing activities(37)(736)
Effect of exchange rates on cash and cash equivalents and funds held on behalf of clients(423)29 
Net increase in cash and cash equivalents and funds held on behalf of clients546 611 
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$7,191 $7,184 
Reconciliation of cash and cash equivalents and funds held on behalf of clients:
Cash and cash equivalents$740 $1,091 
Funds held on behalf of clients6,451 6,093 
Total cash and cash equivalents and funds held on behalf of clients$7,191 $7,184 
Supplemental disclosures:  
Interest paid$155 $162 
Income taxes paid, net of refunds$275 $239 
See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).
11


Notes to Condensed Consolidated Financial Statements (Unaudited)
1. Basis of Presentation
The accompanying Condensed Consolidated Financial Statements and Notes thereto 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 Condensed Consolidated Financial Statements prepared in accordance with U.S. GAAP have been condensed or omitted. The Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. The results for the three and six months ended June 30, 2022 are not necessarily indicative of operating results that may be expected for the full year ending December 31, 2022.
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, and foreign currency exchange rate movements increase the uncertainty inherent in such estimates and assumptions. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in estimates resulting from continuing changes in the economic environment 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 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 the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.
Reclassification
Certain amounts in prior periods' Condensed Consolidated Financial Statements have been reclassified to conform to the current year presentation. In prior periods, commercial paper issuances and repayments were included in Issuance of debt and Repayment of debt, respectively, in the Condensed Consolidated Statements of Cash Flows. The net amount of commercial paper activity is now disclosed separately in Commercial paper issuances, net of repayments in the Condensed Consolidated Statements of Cash Flows. For the period ended June 30, 2021, commercial paper issuances reclassified from Issuance of debt was $1,100 million and commercial paper repayments reclassified from Repayment of debt was $1,100 million. Further information on the gross commercial paper activity for the current and prior year periods is included within the Liquidity and Financial Conditions section of Part I Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
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.
12


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 June 30,Six Months Ended June 30,
2022202120222021
Commercial Risk Solutions$1,692 $1,643 $3,411 $3,283 
Reinsurance Solutions537 500 1,513 1,422 
Health Solutions414 391 1,052 1,006 
Wealth Solutions343 356 688 711 
Eliminations(3)(4)(11)(11)
Total revenue$2,983 $2,886 $6,653 $6,411 
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 June 30,Six Months Ended June 30,
2022202120222021
United States$1,339 $1,263 $2,756 $2,571 
Americas other than United States288 268 564 518 
United Kingdom489 498 1,017 1,028 
Ireland25 39 54 72 
Europe, Middle East, & Africa other than United Kingdom and Ireland469 499 1,527 1,590 
Asia Pacific373 319 735 632 
Total revenue$2,983 $2,886 $6,653 $6,411 
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 June 30,Six Months Ended June 30,
2022202120222021
Balance at beginning of period$254 $241 $361 $339 
Additions354 336 702 682 
Amortization(361)(357)(818)(800)
Impairment    
Foreign currency translation and other(8)2 (6)1 
Balance at end of period$239 $222 $239 $222 
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 June 30,Six Months Ended June 30,
2022202120222021
Balance at beginning of period$184 $185 $179 $184 
Additions12 15 27 28 
Amortization(12)(13)(24)(25)
Impairment    
Foreign currency translation and other(2)(12) (12)
Balance at end of period$182 $175 $182 $175 
13


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 June 30, 2022, Cash and cash equivalents and Short-term investments were $983 million compared to $836 million at December 31, 2021, an increase of $147 million. Of the total balances, $153 million and $160 million were restricted as to their use at June 30, 2022 and December 31, 2021, respectively. Included within Short-term investments as of June 30, 2022 and December 31, 2021, were £84.3 million ($103.4 million at June 30, 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.
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 June 30,Six Months Ended June 30,
2022202120222021
Foreign currency remeasurement$27 $(13)$(1)$(9)
Gain from sales of businesses22 1 47 1 
Equity earnings3 3 4 4 
Pension and other postretirement(3)8 (6)14 
Financial instruments and other(19) 11 (13)
Total
$30 $(1)$55 $(3)
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 June 30,Six Months Ended June 30,
2022202120222021
Balance at beginning of period$93 $101 $90 $98 
Provision4 21 10 27 
Accounts written off, net of recoveries(9)(19)(12)(