Aon plc 10-Q: Financials and Debt Guarantees

TL;DR

Aon's Q2 10-Q shows debt guarantees for notes maturing up to 2029.

AI Summary

Aon plc filed its 10-Q for the period ending June 30, 2024, reporting on its financial performance. The filing details various financial instruments and obligations, including guarantees for several senior notes with maturities ranging from 2025 to 2029. Specific note series mentioned include the 3.875% Senior Notes due 2025 and the 2.875% Senior Notes due 2026.

Why It Matters

This filing provides insight into Aon's financial health and its commitments related to outstanding debt, which can impact investor confidence and future borrowing capacity.

Risk Assessment

Risk Level: medium — The filing details significant debt obligations and guarantees, which carry inherent financial risks.

Key Players & Entities

• Aon plc (company) — Filer of the 10-Q report
• 20240630 (date) — End of the reporting period
• 3.875% Senior Notes due 2025 (dollar_amount) — Guaranteed debt instrument
• 2.875% Senior Notes due 2026 (dollar_amount) — Guaranteed debt instrument
• 2.85% Senior Notes due 2027 (dollar_amount) — Guaranteed debt instrument
• 5.125% Senior Notes due 2027 (dollar_amount) — Guaranteed debt instrument
• 5.150% Senior Notes due 2029 (dollar_amount) — Guaranteed debt instrument

FAQ

Key Financial Figures

• $0.01 — ich registered Class A Ordinary Shares $0.01 nominal value AON New York Stock Exchan

Filing Documents

• aon-20240630.htm (10-Q) — 1924KB
• a221q22024.htm (EX-22.1) — 14KB
• a311certificationofceoq220.htm (EX-31.1) — 8KB
• a312certificationofcfoq220.htm (EX-31.2) — 8KB
• a321certificationofceoq220.htm (EX-32.1) — 4KB
• a322certificationofcfoq220.htm (EX-32.2) — 4KB
• 0001628280-24-033161.txt ( ) — 9755KB
• aon-20240630.xsd (EX-101.SCH) — 67KB
• aon-20240630_cal.xml (EX-101.CAL) — 113KB
• aon-20240630_def.xml (EX-101.DEF) — 272KB
• aon-20240630_lab.xml (EX-101.LAB) — 700KB
• aon-20240630_pre.xml (EX-101.PRE) — 479KB
• aon-20240630_htm.xml (XML) — 1627KB

Financial Statements

Item 1. Financial Statements Aon plc Condensed Consolidated Statements of Income Aon plc Condensed Consolidated Statements of Comprehensive Income Aon plc Condensed Consolidated Statements of Financial Position Aon plc Condensed Consolidated Statements of Shareholders' Equity Aon plc Condensed Consolidated Statements of Cash Flows Notes to Condensed Consolidated Financial Statements

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Controls and Procedures

Item 4. Controls and Procedures PART II

Legal Proceedings

Item 1. Legal Proceedings

Risk Factors

Item 1A. Risk Factors

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities

Mine Safety Disclosures

Item 4. Mine Safety Disclosures

Other Information

Item 5. Other Information

Exhibits

Item 6. Exhibits Signature Exhibit Index The below definitions apply throughout this report unless the context requires otherwise: Term Definition CODM Chief Operating Decision Maker DCF Discounted Cash Flow E&O Errors and Omissions EBITDA Earnings Before Interest, Taxes, Depreciation, and Amortization EMEA Europe, the Middle East, and Africa ESG Environmental, Social, and Governance FCA Financial Conduct Authority GAAP Generally Accepted Accounting Principles GHG Greenhouse Gas LOC Letter of Credit OECD Organisation for Economic Co-operation and Development ROU Right-of-Use SEC Securities and Exchange Commission U.K. United Kingdom U.S. United States

Financial Information

Part I Financial Information

Financial Statements

Item 1. Financial Statements Aon plc Condensed Consolidated Statements of Income (Unaudited) Three Months Ended June 30, Six Months Ended June 30, (millions, except per share data) 2024 2023 2024 2023 Revenue Total revenue $ 3,760 $ 3,177 $ 7,830 $ 7,048 Expenses Compensation and benefits 2,130 1,754 4,013 3,546 Information technology 132 129 256 268 Premises 82 68 153 143 Depreciation of fixed assets 45 39 89 77 Amortization and impairment of intangible assets 128 25 144 50 Other general expense 455 320 803 649 Accelerating Aon United Program expenses 132 — 251 — Total operating expenses 3,104 2,335 5,709 4,733 Operating income 656 842 2,121 2,315 Interest income 31 5 59 10 Interest expense ( 225 ) ( 130 ) ( 369 ) ( 241 ) Other income (expense) 236 ( 59 ) 311 ( 84 ) Income before income taxes 698 658 2,122 2,000 Income tax expense 160 83 491 346 Net income 538 575 1,631 1,654 Less: Net income attributable to redeemable and non-redeemable noncontrolling interests 14 15 36 44 Net income attributable to Aon shareholders $ 524 $ 560 $ 1,595 $ 1,610 Basic net income per share attributable to Aon shareholders $ 2.47 $ 2.74 $ 7.75 $ 7.84 Diluted net income per share attributable to Aon shareholders $ 2.46 $ 2.71 $ 7.72 $ 7.79 Weighted average ordinary shares outstanding - basic 212.5 204.7 205.8 205.4 Weighted average ordinary shares outstanding - diluted 213.3 206.3 206.7 206.7 See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited). 6 Aon plc Condensed Consolidated Statements of Comprehensive Income (Unaudited) Three Months Ended June 30, Six Months Ended June 30, (millions) 2024 2023 2024 2023 Net income $ 538 $ 575 $ 1,631 $ 1,654 Less: Net income attributable to redeemable and non-redeemable noncontrolling interests 14 15 36 44 Net income attributable to Aon shareholders 524 560 1,595 1,610 Other comprehensive income, net of tax: Change in fair value of financial instruments 1 8 76 11 Foreig