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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2015
Income Tax Disclosure [Abstract] |
Income from continuing operations before income tax | Income before income tax and the provision for income tax consist of the following (in millions):
Years ended December 31 | 2015 |  | 2014 |  | 2013
Income before income taxes: |  |  |  |  |
U.K. | $ | 149 |  |  | $ | 347 |  |  | $ | 96 |
U.S. | (51 | ) |  | (55 | ) |  | 349 |
Other | 1,591 |  |  | 1,473 |  |  | 1,093 |
Total | $ | 1,689 |  |  | $ | 1,765 |  |  | $ | 1,538 |
Income tax expense (benefit): |  |  |  |  |
Current: |  |  |  |  |
U.K. | $ | 43 |  |  | $ | 1 |  |  | $ | (18 | )
U.S. federal | 137 |  |  | 156 |  |  | 111 |
U.S. state and local | 54 |  |  | 75 |  |  | 52 |
Other | 256 |  |  | 236 |  |  | 259 |
Total current tax expense | $ | 490 |  |  | $ | 468 |  |  | $ | 404 |
Deferred tax expense (benefit): |  |  |  |  |
U.K. | $ | (39 | ) |  | $ | 38 |  |  | $ | 43 |
U.S. federal | (140 | ) |  | (133 | ) |  | (48 | )
U.S. state and local | (14 | ) |  | (24 | ) |  | 10 |
Other | (30 | ) |  | (15 | ) |  | (19 | )
Total deferred tax benefit | $ | (223 | ) |  | $ | (134 | ) |  | $ | (14 | )
Total income tax expense | $ | 267 |  |  | $ | 334 |  |  | $ | 390 |
Reconciliation of the income tax provisions based on the U.S. statutory corporate tax rate to the provisions reflected in the Consolidated Financial Statements | The reconciliation to the provisions reflected in the Consolidated Financial Statements is as follows:
Years ended December 31 | 2015 |  | 2014 |  | 2013
Statutory tax rate | 20.3% |  | 21.5% |  | 23.0%
U.S. state income taxes, net of U.S. federal benefit | 0.5 |  | 1.5 |  | 2.6
Taxes on international operations (1) | (6.6) |  | (8.9) |  | (4.4)
Nondeductible expenses | 2.2 |  | 1.7 |  | 1.4
Adjustments to prior year tax requirements | (1.3) |  | 0.9 |  | 0.1
Deferred tax adjustments, including statutory rate changes | (0.1) |  | (0.7) |  | 1.4
Deferred tax adjustments, international earnings | — |  | 1.0 |  | 3.3
Adjustments to valuation allowances | (0.6) |  | 0.6 |  | (1.7)
Change in uncertain tax positions | 1.4 |  | 1.7 |  | (0.3)
Other — net | — |  | (0.4) |  | —
Effective tax rate | 15.8% |  | 18.9% |  | 25.4%
(1) | The Company determines the adjustment for taxes on international operations based on the difference between the statutory tax rate applicable to earnings in each foreign jurisdiction and the enacted rate of 20.3%, 21.5% and 23.0% at December 31, 2015, 2014 and 2013, respectively. The benefit to the Company's effective income tax rate from taxes on international operations relates to benefits from lower-taxed global operations, primarily due to the use of global funding structures.
Components of Aon's deferred tax assets and liabilities | The components of the Company's deferred tax assets and liabilities are as follows (in millions):
As of December 31 | 2015 |  | 2014
Deferred tax assets: |  |  |
Employee benefit plans | $ | 635 |  |  | $ | 739 |
Net operating/capital loss and tax credit carryforwards | 349 |  |  | 295 |
Accrued interest | 293 |  |  | 303 |
Other accrued expenses | 98 |  |  | 44 |
Deferred revenue | 65 |  |  | 40 |
Investment basis differences | 56 |  |  | 45 |
Other | 56 |  |  | 6 |
Total | 1,552 |  |  | 1,472 |
Valuation allowance on deferred tax assets | (175 | ) |  | (205 | )
Total | $ | 1,377 |  |  | $ | 1,267 |
Deferred tax liabilities: |  |  |
Intangibles and property, plant and equipment | $ | (961 | ) |  | $ | (1,058 | )
Other accrued expenses | (99 | ) |  | (40 | )
Deferred costs | (30 | ) |  | (28 | )
Unrealized foreign exchange gains | (29 | ) |  | (44 | )
Unremitted earnings | (18 | ) |  | (28 | )
Other | (44 | ) |  | (28 | )
Total | $ | (1,181 | ) |  | $ | (1,226 | )
Net deferred tax asset | $ | 196 |  |  | $ | 41 |
Deferred income taxes (assets and liabilities netted by jurisdiction) as classified in the Consolidated Statements of Financial Position | Deferred income taxes (assets and liabilities have been netted by jurisdiction) have been classified in the Consolidated Statements of Financial Position as follows (in millions):
As of December 31, | 2015 |  | 2014
Deferred tax assets — current (1) | $ | 232 |  |  | $ | 212 |
Deferred tax assets — non-current | 141 |  |  | 144 |
Deferred tax liabilities — current (1) | (1 | ) |  | (2 | )
Deferred tax liabilities — non-current | (176 | ) |  | (313 | )
Net deferred tax asset | $ | 196 |  |  | $ | 41 |
(1) | Included in Other current assets and Other current liabilities.
Reconciliation of the beginning and ending amount of unrecognized tax benefits | The following is a reconciliation of the Company's beginning and ending amount of uncertain tax positions (in millions):
| 2015 |  | 2014
Balance at January 1 | $ | 191 |  |  | $ | 164 |
Additions based on tax positions related to the current year | 31 |  |  | 31 |
Additions for tax positions of prior years | 53 |  |  | 10 |
Reductions for tax positions of prior years | (18 | ) |  | (6 | )
Settlements | (32 | ) |  | — |
Business combinations | — |  |  | 5 |
Lapse of statute of limitations | (5 | ) |  | (11 | )
Foreign currency translation | (2 | ) |  | (2 | )
Balance at December 31 | $ | 218 |  |  | $ | 191 |

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 + Details
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- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 + Details
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- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32687-109319 + Details
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- Definition Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 + Details
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