XML 45 R19.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Shareholders' Equity | 12 Months Ended
--- | ---
Dec. 31, 2021
Equity [Abstract] |
Shareholders' Equity | Shareholders’ Equity Distributable Profits The Company is required under Irish law to have available “distributable profits” to make share repurchases or pay dividends to shareholders. Distributable profits are created through the earnings of the Irish parent company and, among other methods, through intercompany dividends or a reduction in share capital approved by the High Court of Ireland. Distributable profits are not linked to a U.S. GAAP reported amount (e.g., retained earnings). On July 26, 2021, we received approval from the High Court of Ireland to complete a reduction in share premium to create distributable profits of $34.0 billion to support the payment of possible future dividends or future share repurchases, if and to the extent declared by the directors in compliance with their duties under Irish law. As of December 31, 2021 and 2020, the Company had distributable profits in excess of $32.7 billion and $0.2 billion, respectively. We believe that we have the ability to create sufficient distributable profits for the foreseeable future. Ordinary Shares Aon has a share repurchase program authorized by the Company’s Board of Directors. 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, and November 2020, and by $7.5 billion in authorized repurchases 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):
|  | Years Ended December 31
|  | 2021 |  | 2020
Shares repurchased |  | 12.4 |  |  | 8.5 |
Average price per share |  | $ | 286.82 |  |  | $ | 206.28 |
Costs recorded to retained earnings |  |  |  |
Total repurchase cost |  | $ | 3,543 |  |  | $ | 1,761 |
Additional associated costs |  | — |  |  | 2 |
Total costs recorded to retained earnings |  | $ | 3,543 |  |  | $ | 1,763 |
At December 31, 2021, the remaining authorized amount for share repurchases under the Repurchase Program was approximately $1.7 billion. Under the Repurchase Program, the Company has repurchased a total of 149.6 million shares for an aggregate cost of approximately $18.3 billion. Weighted Average Ordinary Shares Weighted average ordinary shares outstanding are as follows (in millions):
| Years Ended December 31
| 2021 |  | 2020 |  | 2019
Basic weighted average ordinary shares outstanding | 224.7 |  |  | 231.9 |  |  | 238.6 |
Dilutive effect of potentially issuable shares | 1.4 |  |  | 1.2 |  |  | 2.0 |
Diluted weighted average ordinary shares outstanding | 226.1 |  |  | 233.1 |  |  | 240.6 |
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 0.3 million shares excluded from the calculation in 2021 and no shares excluded from the calculation in 2020 and 2019. 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, 2018 | (15) |  |  | (1,319) |  |  | (2,575) |  |  | (3,909) |
Other comprehensive income (loss) before reclassifications: |  |  |  |  |  |  |
Other comprehensive income (loss) before reclassifications | (10) |  |  | 15 |  |  | (287) |  |  | (282) |
Tax benefit (expense) | 1 |  |  | (1) |  |  | 58 |  |  | 58 |
Other comprehensive income (loss) before reclassifications, net | (9) |  |  | 14 |  |  | (229) |  |  | (224) |
Amounts reclassified from accumulated other comprehensive income (loss): |  |  |  |  |  |  |
Amounts reclassified from accumulated other comprehensive income | 14 |  |  | — |  |  | 109 |  |  | 123 |
Tax expense | (2) |  |  | — |  |  | (21) |  |  | (23) |
Amounts reclassified from accumulated other comprehensive income, net (3) | 12 |  |  | — |  |  | 88 |  |  | 100 |
Net current period other comprehensive income (loss) | 3 |  |  | 14 |  |  | (141) |  |  | (124) |
Balance at December 31, 2019 | (12) |  |  | (1,305) |  |  | (2,716) |  |  | (4,033) |
Other comprehensive income (loss) before reclassifications: |  |  |  |  |  |  |
Other comprehensive income (loss) before reclassifications | 1 |  |  | 258 |  |  | (255) |  |  | 4 |
Tax benefit | — |  |  | 2 |  |  | 60 |  |  | 62 |
Other comprehensive income (loss) before reclassifications, net | 1 |  |  | 260 |  |  | (195) |  |  | 66 |
Amounts reclassified from accumulated other comprehensive income (loss): |  |  |  |  |  |  |
Amounts reclassified from accumulated other comprehensive income | 15 |  |  | — |  |  | 125 |  |  | 140 |
Tax expense | (3) |  |  | — |  |  | (31) |  |  | (34) |
Amounts reclassified from accumulated other comprehensive income, net (3) | 12 |  |  | — |  |  | 94 |  |  | 106 |
Net current period other comprehensive income (loss) | 13 |  |  | 260 |  |  | (101) |  |  | 172 |
Balance at December 31, 2020 | $ | 1 |  |  | $ | (1,045) |  |  | $ | (2,817) |  |  | $ | (3,861) |
Other comprehensive income (loss) before reclassifications: |  |  |  |  |  |  |
Other comprehensive income (loss) before reclassifications | — |  |  | (290) |  |  | 227 |  |  | (63) |
Tax benefit (expense) | — |  |  | 2 |  |  | (58) |  |  | (56) |
Other comprehensive income (loss) before reclassifications, net | — |  |  | (288) |  |  | 169 |  |  | (119) |
Amounts reclassified from accumulated other comprehensive income (loss): |  |  |  |  |  |  |
Amounts reclassified from accumulated other comprehensive income | 2 |  |  | — |  |  | 142 |  |  | 144 |
Tax expense | (1) |  |  | — |  |  | (34) |  |  | (35) |
Amounts reclassified from accumulated other comprehensive income, net (3) | 1 |  |  | — |  |  | 108 |  |  | 109 |
Net current period other comprehensive income (loss) | 1 |  |  | (288) |  |  | 277 |  |  | (10) |
Balance at December 31, 2021 | $ | 2 |  |  | $ | (1,333) |  |  | $ | (2,540) |  |  | $ | (3,871) |
(1)Reclassifications from this category included in Accumulated other comprehensive loss are recorded in Total revenue, Interest expense, and Compensation and benefits in the Consolidated Statements of Income. Refer to Note 13 “Derivatives and Hedging” for further information regarding the Company’s derivative and hedging activity. (2)Reclassifications from this category included in Accumulated other comprehensive loss are recorded in Other income (expense) in the Consolidated Statements of Income. (3)It is the Company’s policy to release income tax effects from Accumulated other comprehensive loss using the portfolio approach.

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

X
- Definition The entire disclosure for shareholders' equity and share-based payment arrangement. Includes, but is not limited to, disclosure of policy and terms of share-based payment arrangement, deferred compensation arrangement, and employee stock purchase plan (ESPP). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
Name: | us-gaap_ShareholdersEquityAndShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration