XML 22 R15.htm IDEA: XBRL DOCUMENT
v3.19.3

Restructuring | 9 Months Ended
--- | ---
Sep. 30, 2019
Restructuring and Related Activities [Abstract] |
Restructuring | Restructuring In 2017, Aon initiated a global restructuring plan (the “Restructuring Plan”) in connection with the sale of the Divested Business. The Restructuring Plan is intended to streamline operations across the organization and deliver greater efficiency, insight, and connectivity. The Company expects these restructuring activities and related expenses to affect continuing operations through the fourth quarter of 2019. The Company also estimates there to be 5,400 to 5,600 total role eliminations associated with the Restructuring Plan. In the second quarter of 2019, Aon updated the Restructuring Plan for additional opportunities that were identified in the quarter, which are expected to result in additional estimated charges of $125 million in 2019. The Restructuring Plan is expected to result in cumulative charges of approximately $1,350 million through the end of the plan, consisting of approximately $550 million in workforce reduction, $125 million in technology rationalization costs, $80 million in lease consolidation costs, $50 million in non-cash asset impairments, and $545 million in other costs, including certain separation costs associated with the sale of the Divested Business. From the inception of the Restructuring Plan through September 30, 2019, the Company has eliminated 5,353 positions and incurred total charges of $1,263 million for restructuring and related separation costs. These charges are included in Compensation and benefits, Information technology, Premises, Depreciation of fixed assets, and Other general expense in the accompanying Condensed Consolidated Statements of Income. The following table summarizes restructuring and separation costs by type that have been incurred through September 30, 2019 and are estimated to be incurred through the end of the Restructuring Plan (in millions). Estimated costs by type have been revised based on updated assumptions:
|  | Three Months Ended September 30, 2019 |  | Nine Months Ended September 30, 2019 |  | Inception to Date |  | Estimated Remaining Costs |  | Estimated Total Cost (1)
Workforce reduction |  | $ | 9 |  |  | $ | 111 |  |  | $ | 525 |  |  | $ | 25 |  |  | $ | 550 |
Technology rationalization (2) |  | 14 |  |  | 29 |  |  | 109 |  |  | 16 |  |  | 125 |
Lease consolidation (2) |  | 3 |  |  | 17 |  |  | 53 |  |  | 27 |  |  | 80 |
Asset impairments |  | 5 |  |  | 7 |  |  | 46 |  |  | 4 |  |  | 50 |
Other costs associated with restructuring and separation (2) (3) |  | 32 |  |  | 117 |  |  | 530 |  |  | 15 |  |  | 545 |
Total restructuring and related expenses |  | $ | 63 |  |  | $ | 281 |  |  | $ | 1,263 |  |  | $ | 87 |  |  | $ | 1,350 |
(1) | Actual costs, when incurred, may vary due to changes in the assumptions built into the Restructuring Plan. Significant assumptions that may change when plans are finalized and implemented include, but are not limited to, changes in severance calculations, changes in the assumptions underlying sublease loss
calculations due to changing market conditions, and changes in the overall analysis that might cause the Company to add or cancel component initiatives. Estimated Total Cost includes $100 million of non-cash charges.
(2) | Total contract termination costs incurred under the Restructuring Plan associated with Technology rationalizations, Lease consolidations, and Other costs, respectively, associated with restructuring and separation for the three months ended September 30, 2019 were $9 million, $2 million, and $18 million; for the nine months ended September 30, 2019, were $12 million, $15 million, and $21 million; and since inception of the Restructuring Plan, were $18 million, $48 million, and $109 million. Total estimated contract termination costs expected to be incurred under the Restructuring Plan associated with Technology rationalizations, Lease consolidations, and Other costs associated with restructuring and separation, are $20 million, $80 million, and $116 million, respectively.
(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.
The changes in the Company’s liabilities for the Restructuring Plan as of September 30, 2019 are as follows (in millions):
Balance as of December 31, 2018 |  | $ | 201 |
Expensed |  | 260 |
Cash payments |  | (322 | )
Foreign currency translation |  | (1 | )
Balance as of September 30, 2019 |  | $ | 138 |

X
- References No definition available. + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration