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Discontinued Operations | 6 Months Ended
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Jun. 30, 2017
Discontinued Operations and Disposal Groups [Abstract] |
Discontinued Operations | Discontinued Operations On February 9, 2017, the Company entered into the Purchase Agreement with Tempo Acquisition, LLC to sell its benefits administration and business process outsourcing business to the Buyer, an entity formed and controlled by affiliates of The Blackstone Group L.P., and certain designated purchasers that are direct or indirect subsidiaries of the Buyer. On May 1, 2017, the Buyer purchased all of the outstanding equity interests of the Divested Business, plus certain related assets, for a purchase price of (i) $4.3 billion in cash paid at closing, subject to customary adjustments set forth in the Purchase Agreement, and (ii) deferred consideration of up to $500 million, plus the assumption of certain liabilities. Cash proceeds after customary adjustments and before taxes due were $4.2 billion. Aon and the Buyer entered into certain transaction related agreements at the closing, including two commercial agreements, a transition services agreement, certain intellectual property license agreements, sub-leases and other customary agreements. Aon expects to continue to be a significant client of the Divested Business and the Divested Business has agreed to use Aon for its broking and other services for a specified period of time. In the second quarter of 2017, the Company recorded an estimated gain on sale, net of taxes, of $798 million and a non-cash impairment charge to its tradename associated with the Divested Business of $380 million as this asset was not sold to the Buyer. The impairment charge is included in Amortization and impairment of intangible assets on the Condensed Consolidated Statement of Income for the three and six months ended June 30, 2017. The Company has classified the results of the Divested Business as discontinued operations in the Company’s Condensed Consolidated Statements of Income for all periods presented. Additionally, the assets and liabilities of the Divested Business were retrospectively classified as discontinued operations in the Company’s Condensed Consolidated Statements of Financial Position upon triggering held for sale criteria in February 2017. These assets and liabilities were sold on May 1, 2017. The financial results of the Divested Business for the three and six months ended June 30, 2017 and 2016 are presented as Income from discontinued operations on the Company’s Condensed Consolidated Statements of Income. The following table presents financial results of the Divested Business (in millions):
|  | Three months ended June 30 |  | Six months ended June 30
|  | 2017 |  | 2016 |  | 2017 |  | 2016
Revenue |  |  |  |  |  |  |  |
Total revenue |  | $ | 171 |  |  | $ | 518 |  |  | $ | 698 |  |  | $ | 1,047 |
Expenses |  |  |  |  |  |  |  |
Total operating expenses (1) |  | 156 |  |  | 466 |  |  | 626 |  |  | 952 |
Operating Income from discontinued operations |  | 15 |  |  | 52 |  |  | 72 |  |  | 95 |
Other income |  | 11 |  |  | 1 |  |  | 11 |  |  | 1 |
Income from discontinued operations before income taxes |  | 26 |  |  | 53 |  |  | 83 |  |  | 96 |
Income taxes |  | 3 |  |  | 18 |  |  | 20 |  |  | 36 |
Income from discontinued operations excluding gain, net of tax |  | 23 |  |  | 35 |  |  | 63 |  |  | 60 |
Gain on sale of discontinued operations, net of tax |  | 798 |  |  | — |  |  | 798 |  |  | — |
Income from discontinued operations, net of tax |  | $ | 821 |  |  | $ | 35 |  |  | $ | 861 |  |  | $ | 60 |
(1) | 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 June 30, 2017. Included within total operating expenses for the three months ended June 30, 2016 was $17 million of depreciation of fixed assets and $30 million of intangible asset amortization. Total operating expenses for the six months ended June 30, 2017 and 2016 include, respectively, $8 million and $35 million of depreciation of fixed assets and $11 million and $60 million of intangible asset amortization.
The following table presents the aggregate carrying amounts of the classes of assets and liabilities presented as discontinued operations within the Company’s Condensed Consolidated Statements of Financial Position (in millions):
|  | June 30, 2017 (1) |  | December 31, 2016
ASSETS |  |  |  |  |  |
Cash and cash equivalents |  | $ | — |  |  | $ | 5 |
Receivables, net |  | — |  |  | 483 |
Fiduciary assets |  | — |  |  | 526 |
Goodwill |  | — |  |  | 1,337 |
Intangible assets, net |  | — |  |  | 333 |
Fixed assets, net |  | — |  |  | 215 |
Other assets |  | — |  |  | 295 |
TOTAL ASSETS |  | $ | — |  |  | $ | 3,194 |
LIABILITIES |  |  |  |  |  |
Accounts payable and accrued liabilities |  | $ | — |  |  | $ | 197 |
Fiduciary liabilities |  | — |  |  | 526 |
Other liabilities |  | — |  |  | 356 |
TOTAL LIABILITIES |  | $ | — |  |  | $ | 1,079 |
(1) | All assets and liabilities associated with the Divested Business were sold on May 1, 2017.
The Company’s Condensed Consolidated Statements of Cash Flows present the operating, investing, and financing cash flows of the Divested Business as discontinued operations. Aon uses a centralized approach to cash management and financing of its operations. Prior to the closing of the Transaction, portions of the Divested Business’s cash were transferred to Aon daily, and Aon would fund the Divested Business as needed. Cash and cash equivalents of discontinued operations at June 30, 2016 was $4 million.

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- References No definition available. + Details
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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 + Details
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