Aon Reports Third Quarter 2017 Results
Third Quarter Key Metrics From Continuing Operations
- Reported revenue increased 6% to
$2.3 billion , with organic revenue growth of 2% - Operating margin was 11.3%, and operating margin, adjusted for certain items, increased 170 basis points to 20.3%
- EPS was
$0.73 , and EPS, adjusted for certain items, increased 18% to$1.29 - For the first nine months of 2017, cash flow from operations was
$289 million , and free cash flow was$164 million
Third Quarter Highlights
- Repurchased 5.4 million Class A Ordinary Shares for approximately
$750 million - Entered into an agreement to acquire
The Townsend Group , a leading global real estate and investment management firm, bringing greater depth of expertise in real estate assets to Aon's distribution scale and increasing Aon's ability to provide more attractive alternative private market assets to clients - Entered into an agreement to acquire Unirobe Meeùs Groep in
the Netherlands , solidifying Aon's position as the leading insurance broker and risk advisor in all business-to-business market segments inthe Netherlands
Net income attributable to Aon shareholders was
"Our results for the quarter reflect strong organic revenue growth in our reinsurance business, 170 basis points of adjusted operating margin improvement, and 18% adjusted earnings per share growth, highlighting increased operating leverage in our Aon United operating model and effective capital management with the repurchase of
THIRD QUARTER 2017 FINANCIAL SUMMARY
The third quarter 2017 financial results discussed herein represent performance from continuing operations unless otherwise noted.
Total revenue in the third quarter increased 6% to
Total operating expenses in the third quarter increased 13% to
Restructuring expenses were
Restructuring savings in the third quarter related to restructuring and other operational improvement initiatives are
Foreign currency exchange rates in the third quarter had a
Effective tax rate reflected in the
Weighted average diluted shares outstanding decreased to 257.3 million in the third quarter compared to 269.6 million in the prior year period. The Company repurchased 5.4 million Class A Ordinary Shares for approximately
THIRD QUARTER 2017 CASH FLOW SUMMARY
Cash flow from operations for the first nine months of 2017 decreased 75%, or
Free cash flow, defined as cash flow from operations less capital expenditures, decreased 84%, or
THIRD QUARTER 2017 REVENUE REVIEW
The third quarter revenue reviews provided below include supplemental information related to organic revenue, which is a non-GAAP measure that is described in detail in "Reconciliation of Non-GAAP Measures - Organic Revenue and Free Cash Flow" on page 10 of this press release.
Three Months Ended |
||||||||||||||||
(millions) |
|
|
% |
Less: |
Less: Fiduciary |
Less: |
Organic |
|||||||||
Revenue |
||||||||||||||||
Commercial Risk Solutions |
$ |
917 |
$ |
884 |
4% |
1% |
—% |
4% |
(1)% |
|||||||
Reinsurance Solutions |
355 |
329 |
8 |
1 |
— |
— |
7 |
|||||||||
Retirement Solutions |
491 |
466 |
5 |
1 |
— |
(1) |
5 |
|||||||||
|
293 |
265 |
11 |
1 |
— |
8 |
2 |
|||||||||
Data & Analytic Services |
289 |
260 |
11 |
1 |
— |
7 |
3 |
|||||||||
Elimination |
(5) |
(3) |
N/A |
N/A |
N/A |
N/A |
N/A |
|||||||||
Total revenue |
$ |
2,340 |
$ |
2,201 |
6% |
1% |
—% |
3% |
2% |
Total organic revenue increased 2% compared to the prior year period highlighted by strong growth in Reinsurance Solutions and Retirement Solutions.
Reinsurance Solutions organic revenue increased 7% compared to the prior year period driven by growth across every major product line, with particular strength in treaty placements driven by record new business generation, partially offset by a modest unfavorable market impact in the
Retirement Solutions organic revenue increased 5% compared to the prior year period driven by strong growth in investment consulting, primarily for delegated investment management, as well as growth in our talent practice for compensation surveys and benchmarking services.
Data & Analytic Services organic revenue increased 3% compared to the prior year period driven by strong growth in the Affinity business, with particular strength in the
THIRD QUARTER 2017 EXPENSE REVIEW
Three Months Ended |
|||||||||||
(millions) |
|
|
$ |
% |
|||||||
Expenses |
|||||||||||
Compensation and benefits |
$ |
1,419 |
$ |
1,300 |
$ |
119 |
9% |
||||
Information technology |
109 |
99 |
10 |
10 |
|||||||
Premises |
89 |
86 |
3 |
3 |
|||||||
Depreciation of fixed assets |
40 |
39 |
1 |
3 |
|||||||
Amortization and impairment of intangible assets |
101 |
42 |
59 |
140 |
|||||||
Other general expenses |
317 |
267 |
50 |
19 |
|||||||
Total operating expenses |
$ |
2,075 |
$ |
1,833 |
$ |
242 |
13% |
Compensation and benefits expense increased 9%, or
Information technology expense increased 10%, or
Premises expense increased 3%, or
Depreciation of fixed assets increased 3%, or
Amortization and impairment of intangible assets increased 140%, or
Other general expenses increased 19%, or
THIRD QUARTER 2017 INCOME SUMMARY
Certain noteworthy items impacted operating income and operating margins in the third quarters of 2017 and 2016. The third quarter information provided below includes supplemental information related to adjusted operating income and adjusted operating margin, which are non-GAAP measures that are described in detail in "Reconciliation of Non-GAAP Measures - Operating Income from Continuing Operations and Diluted Earnings per Share" on page 11 of this press release.
Three Months Ended |
||||||||
(millions) |
|
|
% Change |
|||||
Revenue |
$ |
2,340 |
$ |
2,201 |
6% |
|||
Expenses |
2,075 |
1,833 |
13 |
|||||
Operating income |
$ |
265 |
$ |
368 |
(28)% |
|||
Operating margin |
11.3% |
16.7% |
||||||
Operating income - adjusted |
$ |
476 |
$ |
410 |
16% |
|||
Operating margin - adjusted |
20.3% |
18.6% |
Operating income decreased
Three Months Ended |
||||||||
(millions) |
|
|
% |
|||||
Operating income |
$ |
265 |
$ |
368 |
(28)% |
|||
Interest income |
10 |
1 |
900 |
|||||
Interest expense |
(70) |
(70) |
— |
|||||
Other income (expense) |
(5) |
10 |
(150) |
|||||
Income from continuing operations before income taxes |
$ |
200 |
$ |
309 |
(35)% |
Interest income increased
DISCONTINUED OPERATIONS
Net loss from discontinued operations was
Conference Call, Presentation Slides and Webcast Details
The Company will host a conference call on
About Aon
Safe Harbor Statement
This communication 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. 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. These forward-looking statements include information about possible or assumed future results of our operations. All statements, other than statements of historical facts that address activities, events or developments that we expect or anticipate may occur in the future, including such things as our outlook, future capital expenditures, growth in commissions and fees, changes to the composition or level of our revenues, cash flow and liquidity, expected tax rates, business strategies, competitive strengths, goals, the benefits of new initiatives, growth of our business and operations, plans and references to future successes, are forward-looking statements. Also, when we use the words such as "anticipate", "believe", "estimate", "expect", "intend", "plan", "probably", "potential", "looking forward", or similar expressions, we are making forward-looking statements.
The following factors, among others, could cause actual results to differ from those set forth in the forward looking statements: general economic and political conditions in different countries in which Aon does business around the world; changes in the competitive environment; fluctuations in exchange and interest rates, including negative yields in some jurisdictions, that could influence revenue and expense; changes in global equity and fixed income markets that could affect the return on invested assets; changes in the funding status of Aon's various defined benefit pension plans and the impact of any increased pension funding resulting from those changes; the level of Aon's debt limiting financial flexibility; rating agency actions that could affect Aon's ability to borrow funds; the effect of the change in global headquarters and jurisdiction of incorporation, including differences in the anticipated benefits; changes in estimates or assumptions on our financial statements; limits on Aon's subsidiaries to make dividend and other payments to Aon; the impact of lawsuits and other contingent liabilities and loss contingencies arising from errors and omissions and other claims against Aon; the impact of, and potential challenges in complying with, legislation and regulation in the jurisdictions in which Aon operates, particularly given the global scope of Aon's businesses and the possibility of conflicting regulatory requirements across jurisdictions in which Aon does business; the impact of any investigations brought by regulatory authorities in the
Any or all of Aon's forward-looking statements may turn out to be inaccurate, and there are no guarantees about Aon's 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. Further information concerning Aon and its businesses, including factors that potentially could materially affect Aon's financial results, is contained in Aon's filings with the
Explanation of Non-GAAP Measures
This communication includes supplemental information related to organic revenue, free cash flow, adjusted operating margin, and adjusted earnings per share for continuing operations that exclude the effects of intangible asset amortization, capital expenditures, and certain other noteworthy items that affected results for the comparable periods. Organic revenue includes the impact of intercompany activity and excludes the impact of foreign exchange rate changes, acquisitions, divestitures, transfers between business units, fiduciary investment income, and reimbursable expenses. The impact of foreign exchange is determined by translating last year's revenue, expense or net income at this year's foreign exchange rates. Reconciliations are provided in the attached appendices. Supplemental organic revenue information and additional measures that exclude the effects of certain items noted above that do not affect net income or any other
Investor Contact: |
Media Contact: |
|
Investor Relations |
|
|
312-381-1801 |
Senior Director, |
|
312-381-1532 |
|
|||||||||||||||||||
Condensed Consolidated Statements of Income (Unaudited) |
|||||||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||||||
(millions, except per share data) |
|
|
% |
|
|
% Change |
|||||||||||||
Revenue |
|||||||||||||||||||
Total revenue |
$ |
2,340 |
$ |
2,201 |
6% |
$ |
7,089 |
$ |
6,759 |
5% |
|||||||||
Expenses |
|||||||||||||||||||
Compensation and benefits |
1,419 |
1,300 |
9% |
4,337 |
4,041 |
7% |
|||||||||||||
Information technology |
109 |
99 |
10% |
295 |
281 |
5% |
|||||||||||||
Premises |
89 |
86 |
3% |
259 |
257 |
1% |
|||||||||||||
Depreciation of fixed assets |
40 |
39 |
3% |
148 |
118 |
25% |
|||||||||||||
Amortization and impairment of intangible assets |
101 |
42 |
140% |
604 |
117 |
416% |
|||||||||||||
Other general expenses |
317 |
267 |
19% |
956 |
770 |
24% |
|||||||||||||
Total operating expenses |
2,075 |
1,833 |
13% |
6,599 |
5,584 |
18% |
|||||||||||||
Operating income |
265 |
368 |
(28)% |
490 |
1,175 |
(58)% |
|||||||||||||
Interest income |
10 |
1 |
900% |
20 |
6 |
233% |
|||||||||||||
Interest expense |
(70) |
(70) |
—% |
(211) |
(212) |
—% |
|||||||||||||
Other income (expense) |
(5) |
10 |
(150)% |
(20) |
27 |
(174)% |
|||||||||||||
Income from continuing operations before income taxes |
200 |
309 |
(35)% |
279 |
996 |
(72)% |
|||||||||||||
Income taxes (1) |
4 |
25 |
(84)% |
(139) |
127 |
(209)% |
|||||||||||||
Net income from continuing operations |
196 |
284 |
(31)% |
418 |
869 |
(52)% |
|||||||||||||
Income from discontinued operations, net of tax (2) |
(4) |
42 |
(110)% |
857 |
102 |
740% |
|||||||||||||
Net income |
192 |
326 |
(41)% |
1,275 |
971 |
31% |
|||||||||||||
Less: Net income attributable to noncontrolling interests |
7 |
7 |
—% |
30 |
27 |
11% |
|||||||||||||
Net income attributable to Aon shareholders |
$ |
185 |
$ |
319 |
(42)% |
$ |
1,245 |
$ |
944 |
32% |
|||||||||
Basic net income (loss) per share attributable to Aon shareholders |
|||||||||||||||||||
Continuing operations |
$ |
0.74 |
$ |
1.03 |
(28)% |
$ |
1.49 |
$ |
3.13 |
(52)% |
|||||||||
Discontinued operations (3) |
(0.02) |
0.16 |
(113)% |
3.28 |
0.38 |
763% |
|||||||||||||
Net income |
$ |
0.72 |
$ |
1.19 |
(39)% |
$ |
4.77 |
$ |
3.51 |
36% |
|||||||||
Diluted net income (loss) per share attributable to Aon shareholders |
|||||||||||||||||||
Continuing operations |
$ |
0.73 |
$ |
1.03 |
(29)% |
$ |
1.48 |
$ |
3.11 |
(52)% |
|||||||||
Discontinued operations (3) |
(0.01) |
0.15 |
(107)% |
3.26 |
0.37 |
781% |
|||||||||||||
Net income |
$ |
0.72 |
$ |
1.18 |
(39)% |
$ |
4.74 |
$ |
3.48 |
36% |
|||||||||
Weighted average ordinary shares outstanding - basic |
255.6 |
267.5 |
(4)% |
260.9 |
269.1 |
(3)% |
|||||||||||||
Weighted average ordinary shares outstanding - diluted |
257.3 |
269.6 |
(5)% |
262.9 |
271.0 |
(3)% |
(1) |
The effective tax rate was 2.0% and 8.1% for the three months ended |
(2) |
Income from discontinued operations, net of tax, includes a |
(3) |
Upon triggering held for sale criteria in |
|
||||||||||||||||
Reconciliation of Non-GAAP Measures - Organic Revenue Growth and Free Cash Flow (Unaudited) |
||||||||||||||||
Organic Revenue Growth From Continuing Operations (Unaudited) |
||||||||||||||||
Three Months Ended |
||||||||||||||||
(millions) |
|
|
% |
Less: |
Less: Fiduciary |
Less: Acquisitions, |
Organic |
|||||||||
Revenue |
||||||||||||||||
Commercial Risk Solutions |
$ |
917 |
$ |
884 |
4% |
1% |
—% |
4% |
(1)% |
|||||||
Reinsurance Solutions |
355 |
329 |
8 |
1 |
— |
— |
7 |
|||||||||
Retirement Solutions |
491 |
466 |
5 |
1 |
— |
(1) |
5 |
|||||||||
|
293 |
265 |
11 |
1 |
— |
8 |
2 |
|||||||||
Data & Analytic Services |
289 |
260 |
11 |
1 |
— |
7 |
3 |
|||||||||
Elimination |
(5) |
(3) |
N/A |
N/A |
N/A |
N/A |
N/A |
|||||||||
Total revenue |
$ |
2,340 |
$ |
2,201 |
6% |
1% |
—% |
3% |
2% |
Nine Months Ended |
||||||||||||||||
(millions) |
|
|
% |
Less: |
Less: Fiduciary |
Less: Acquisitions, |
Organic |
|||||||||
Revenue |
||||||||||||||||
Commercial Risk Solutions |
$ |
2,943 |
$ |
2,835 |
4% |
(1)% |
—% |
4% |
1% |
|||||||
Reinsurance Solutions |
1,070 |
1,032 |
4 |
(1) |
— |
— |
5 |
|||||||||
Retirement Solutions |
1,266 |
1,266 |
— |
(2) |
— |
(1) |
3 |
|||||||||
|
977 |
838 |
17 |
(1) |
— |
11 |
7 |
|||||||||
Data & Analytic Services |
842 |
794 |
6 |
— |
— |
2 |
4 |
|||||||||
Elimination |
(9) |
(6) |
N/A |
N/A |
N/A |
N/A |
N/A |
|||||||||
Total revenue |
$ |
7,089 |
$ |
6,759 |
5% |
(1)% |
—% |
3% |
3% |
(1) |
Currency impact is determined by translating last year's revenue at this year's foreign exchange rates. |
(2) |
Fiduciary Investment Income for the three months ended |
(3) |
Organic revenue growth includes the impact of intercompany activity and excludes the impact of foreign exchange rate changes, acquisitions, divestitures, transfers between business units, fiduciary investment income, and reimbursable expenses. |
Free Cash Flow from Continuing Operations (Unaudited) |
||||||||
Nine Months Ended |
||||||||
(millions) |
|
|
Percent |
|||||
Cash Provided by Continuing Operating Activities |
$ |
289 |
$ |
1,152 |
(75)% |
|||
Capital Expenditures Used for Continuing Operations |
(125) |
(107) |
17 |
|||||
Free Cash Flow Provided by Continuing Operations (1) |
$ |
164 |
$ |
1,045 |
(84)% |
(1) |
Free cash flow is defined as cash flow from operations less capital expenditures. This non-GAAP measure does not imply or represent a precise calculation of residual cash flow available for discretionary expenditures. |
|
|||||||||||||||||
Reconciliation of Non-GAAP Measures - Operating Income from Continuing Operations and Diluted Earnings Per Share (Unaudited) (1) |
|||||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||||
(millions, except percentages) |
|
|
Percent |
|
|
Percent |
|||||||||||
Revenue from continuing operations |
$ |
2,340 |
$ |
2,201 |
6% |
$ |
7,089 |
$ |
6,759 |
5% |
|||||||
Operating income from continuing operations - as reported |
$ |
265 |
$ |
368 |
(28)% |
$ |
490 |
$ |
1,175 |
(58)% |
|||||||
Amortization and impairment of intangible assets |
101 |
42 |
604 |
117 |
|||||||||||||
Restructuring |
102 |
— |
401 |
— |
|||||||||||||
Regulatory and compliance matters |
8 |
— |
42 |
— |
|||||||||||||
Pension settlement |
— |
— |
— |
62 |
|||||||||||||
Operating income from continuing operations - as adjusted |
$ |
476 |
$ |
410 |
16% |
$ |
1,537 |
$ |
1,354 |
14% |
|||||||
Operating margin from continuing operations - as reported |
11.3% |
16.7% |
6.9% |
17.4% |
|||||||||||||
Operating margin from continuing operations - as adjusted |
20.3% |
18.6% |
21.7% |
20.0% |
Three Months Ended |
Nine Months Ended |
||||||||||||||||
(millions, except per share data) |
|
|
Percent |
|
|
Percent Change |
|||||||||||
Operating income from continuing operations - as adjusted |
$ |
476 |
$ |
410 |
16% |
$ |
1,537 |
$ |
1,354 |
14% |
|||||||
Interest income |
10 |
1 |
900% |
20 |
6 |
233% |
|||||||||||
Interest expense |
(70) |
(70) |
—% |
(211) |
(212) |
—% |
|||||||||||
Other income (expense) |
(5) |
10 |
(150)% |
(20) |
27 |
(174)% |
|||||||||||
Income before income taxes from continuing operations - as adjusted |
411 |
351 |
17% |
1,326 |
1,175 |
13% |
|||||||||||
Income taxes (2) |
72 |
50 |
44% |
194 |
176 |
10% |
|||||||||||
Net income from continuing operations - as adjusted |
339 |
301 |
13% |
1,132 |
999 |
13% |
|||||||||||
Adjusted income (loss) from discontinued operations, net of tax (3) |
(10) |
65 |
(115)% |
60 |
171 |
(65)% |
|||||||||||
Net income - as adjusted |
329 |
366 |
(10)% |
1,192 |
1,170 |
2% |
|||||||||||
Less: Net income attributable to noncontrolling interests |
7 |
7 |
—% |
30 |
27 |
11% |
|||||||||||
Net income attributable to Aon shareholders - as adjusted |
$ |
322 |
$ |
359 |
(10)% |
$ |
1,162 |
$ |
1,143 |
2% |
|||||||
Diluted net income (loss) per share attributable to Aon shareholders
|
|||||||||||||||||
Continuing operations - as adjusted |
$ |
1.29 |
$ |
1.09 |
18% |
$ |
4.19 |
$ |
3.59 |
17% |
|||||||
Discontinued operations - as adjusted |
(0.04) |
0.24 |
(117)% |
0.23 |
0.63 |
(63)% |
|||||||||||
Net income - as adjusted |
$ |
1.25 |
$ |
1.33 |
(6)% |
$ |
4.42 |
$ |
4.22 |
5% |
|||||||
Weighted average ordinary shares outstanding - diluted |
257.3 |
269.6 |
(5)% |
262.9 |
271.0 |
(3)% |
(1) |
Certain noteworthy items impacting operating income in 2017 and 2016 are described in this schedule. The items shown with the caption "as adjusted" are non-GAAP measures. |
(2) |
The effective tax rates in the |
(3) |
Adjusted income from discontinued operations, net of tax, excludes the gain on sale and intangible asset amortization on discontinued operations of |
|
||||||
Condensed Consolidated Statements of Financial Position (Unaudited) |
||||||
As of |
||||||
(millions) |
|
|
||||
ASSETS |
||||||
CURRENT ASSETS |
||||||
Cash and cash equivalents |
$ |
749 |
$ |
426 |
||
Short-term investments |
1,640 |
290 |
||||
Receivables, net |
2,068 |
2,106 |
||||
Fiduciary assets (1) |
9,292 |
8,959 |
||||
Other current assets |
518 |
247 |
||||
Current assets of discontinued operations |
— |
1,118 |
||||
Total Current Assets |
14,267 |
13,146 |
||||
|
7,888 |
7,410 |
||||
Intangible assets, net |
1,341 |
1,890 |
||||
Fixed assets, net |
545 |
550 |
||||
Deferred tax assets |
565 |
325 |
||||
Prepaid pension |
1,020 |
858 |
||||
Other non-current assets |
298 |
360 |
||||
Non-current assets of discontinued operations |
— |
2,076 |
||||
TOTAL ASSETS |
$ |
25,924 |
$ |
26,615 |
||
LIABILITIES AND EQUITY |
||||||
LIABILITIES |
||||||
CURRENT LIABILITIES |
||||||
Accounts payable and accrued liabilities |
$ |
1,588 |
$ |
1,604 |
||
Short-term debt and current portion of long-term debt |
305 |
336 |
||||
Fiduciary liabilities |
9,292 |
8,959 |
||||
Other current liabilities |
1,289 |
656 |
||||
Current liabilities of discontinued operations |
— |
940 |
||||
Total Current Liabilities |
12,474 |
12,495 |
||||
Long-term debt |
5,662 |
5,869 |
||||
Deferred tax liabilities |
83 |
101 |
||||
Pension, other postretirement and postemployment liabilities |
1,612 |
1,760 |
||||
Other non-current liabilities |
846 |
719 |
||||
Non-current liabilities of discontinued operations |
— |
139 |
||||
TOTAL LIABILITIES |
20,677 |
21,083 |
||||
EQUITY |
||||||
Ordinary shares - |
3 |
3 |
||||
Additional paid-in capital |
5,670 |
5,577 |
||||
Retained earnings |
2,914 |
3,807 |
||||
Accumulated other comprehensive loss |
(3,412) |
(3,912) |
||||
TOTAL AON SHAREHOLDERS' EQUITY |
5,175 |
5,475 |
||||
Noncontrolling interests |
72 |
57 |
||||
TOTAL EQUITY |
5,247 |
5,532 |
||||
TOTAL LIABILITIES AND EQUITY |
$ |
25,924 |
$ |
26,615 |
(1) |
Includes cash and short-term investments of |
|
||||||||
Condensed Consolidated Statements of Cash Flows (Unaudited) |
||||||||
Nine Months Ended |
||||||||
(millions) |
|
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES |
||||||||
Net income |
$ |
1,275 |
$ |
971 |
||||
Less: Income from discontinued operations, net of income taxes |
857 |
102 |
||||||
Adjustments to reconcile net income to cash provided by operating activities: |
||||||||
Loss (gain) from sales of businesses and investments, net |
2 |
(41) |
||||||
Depreciation of fixed assets |
148 |
118 |
||||||
Amortization and impairment of intangible assets |
604 |
117 |
||||||
Share-based compensation expense |
214 |
210 |
||||||
Deferred income taxes |
(208) |
(7) |
||||||
Change in assets and liabilities: |
||||||||
Fiduciary receivables |
986 |
1,538 |
||||||
Short-term investments — funds held on behalf of clients |
(701) |
(419) |
||||||
Fiduciary liabilities |
(285) |
(1,119) |
||||||
Receivables, net |
144 |
175 |
||||||
Accounts payable and accrued liabilities |
(237) |
(246) |
||||||
Restructuring reserves |
170 |
— |
||||||
Current income taxes |
(785) |
(80) |
||||||
Pension, other postretirement and other postemployment liabilities |
(142) |
(70) |
||||||
Other assets and liabilities |
(39) |
107 |
||||||
Net cash provided by operating activities - continuing operations |
289 |
1,152 |
||||||
Net cash provided by operating activities - discontinued operations |
64 |
323 |
||||||
CASH PROVIDED BY OPERATING ACTIVITIES |
353 |
1,475 |
||||||
CASH FLOWS FROM INVESTING ACTIVITIES |
||||||||
Proceeds from investments |
43 |
31 |
||||||
Payments for investments |
(55) |
(47) |
||||||
Net sale (purchases) of short-term investments — non-fiduciary |
(1,344) |
(108) |
||||||
Acquisition of businesses, net of cash acquired |
(172) |
(198) |
||||||
Sale of businesses, net of cash sold |
4,194 |
104 |
||||||
Capital expenditures |
(125) |
(107) |
||||||
Net cash provided by (used for) investing activities - continuing operations |
2,541 |
(325) |
||||||
Net cash used for investing activities - discontinued operations |
(19) |
(46) |
||||||
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES |
2,522 |
(371) |
||||||
CASH FLOWS FROM FINANCING ACTIVITIES |
||||||||
Share repurchase |
(1,888) |
(1,037) |
||||||
Issuance of shares for employee benefit plans |
(118) |
(70) |
||||||
Issuance of debt |
1,651 |
2,729 |
||||||
Repayment of debt |
(1,998) |
(2,308) |
||||||
Cash dividends to shareholders |
(274) |
(258) |
||||||
Noncontrolling interests and other financing activities |
(21) |
(71) |
||||||
Net cash provided by financing activities - continuing operations |
(2,648) |
(1,015) |
||||||
Net cash provided by financing activities - discontinued operations |
— |
— |
||||||
CASH USED FOR FINANCING ACTIVITIES |
(2,648) |
(1,015) |
||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS |
91 |
10 |
||||||
NET INCREASE IN CASH AND CASH EQUIVALENTS |
318 |
99 |
||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD |
431 |
384 |
||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD (1) |
$ |
749 |
$ |
483 |
(1) |
Includes |
|
||||||||||||
Restructuring Plan (Unaudited) (1) |
||||||||||||
Three months ended |
Nine months ended |
Estimated |
Estimated Total |
|||||||||
Workforce reduction |
$ |
52 |
$ |
257 |
$ |
46 |
$ |
303 |
||||
Technology rationalization |
12 |
22 |
124 |
146 |
||||||||
Lease consolidation |
4 |
8 |
72 |
80 |
||||||||
Asset impairments |
2 |
26 |
14 |
40 |
||||||||
Other costs associated with restructuring and separation (3) |
32 |
88 |
93 |
181 |
||||||||
Total restructuring and related expenses |
$ |
102 |
$ |
401 |
$ |
349 |
$ |
750 |
(1) |
In the Condensed Consolidated Statements of Income, workforce reductions are included in "Compensation and benefits," IT rationalization is included in "Information technology," lease consolidations are included in "Premises," asset impairments are included in "Depreciation of fixed assets," and other costs associated with restructuring are included in "Other general expenses" depending on the nature of the expense. |
(2) |
Actual costs, when incurred, may vary due to changes in the assumptions built into this 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 allocations between expense categories may be revised in future periods as these assumptions are updated. |
(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. |
View original content:http://www.prnewswire.com/news-releases/aon-reports-third-quarter-2017-results-300544614.html
SOURCE
Republican Budget Cuts Hurt Nebraska Families: 500,000 Nebraskans Rely on Medicaid and Medicare
Himco Variable Insurance Trust Files SEC Form 40-17G/A, Fidelity Bond [Rule 17G-1(G)]: (Oct. 13, 2017)
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News