Aon Reports First Quarter 2019 Results

Published

LONDON, April 26, 2019 /PRNewswire/ -- 

First Quarter Key Metrics From Continuing Operations

  • Total revenue increased 2% to $3.1 billion, with organic revenue growth of 6%
  • Operating margin increased 180 basis points to 27.7%, and operating margin, adjusted for certain items, increased 190 basis points to 33.7%
  • EPS increased 15% to $2.70, and EPS, adjusted for certain items, increased 11% to $3.31
  • For the first three months of 2019, cash flow from operations decreased 47% to $74 million, and free cash flow decreased 82% to $17 million

First Quarter Highlights

  • Repurchased 0.6 million Class A Ordinary Shares for approximately $100 million
  • Subsequent to the close of the quarter, announced a 10% increase to the quarterly cash dividend
  • Aon's New Ventures Group announced the formal sponsorship of the firm's Intellectual Property Solutions to accelerate industry-leading innovation and scale our internal capabilities with greater speed to market

Aon plc (NYSE: AON) today reported results for the three months ended March 31, 2019.

Net income from continuing operations attributable to Aon shareholders was $659 million, or $2.70 per share, compared to $588 million, or $2.35 per share, in the prior year period. Net income per share from continuing operations attributable to Aon shareholders, adjusted for certain items, increased 11% to $3.31, including an unfavorable impact of $0.13 per share if the company were to translate prior year period results at current period foreign exchange rates ("foreign currency translation"), compared to $2.97 in the prior year period. Certain items that impacted first quarter results and comparisons with the prior year period are detailed in the "Reconciliation of Non-GAAP Measures - Operating Income from Continuing Operations and Diluted Earnings Per Share" on page 10 of this press release.

"Our results reflect increasing strength from our Aon United initiatives, as highlighted by strong organic revenue growth of 6%, substantial operating margin improvement of +190 basis points, and double-digit earnings per share growth for the first quarter," said Greg Case, Chief Executive Officer. "More important, we continue to strengthen our firm through investments in industry-defining content and capability, while increasing our relevance to clients, delivering strong financial results and unlocking significant shareholder value creation through double-digit free cash flow growth over the long-term."

FIRST QUARTER 2019 FINANCIAL SUMMARY
The first quarter 2019 financial results discussed herein represent performance from continuing operations unless otherwise noted.

Total revenue in the first quarter increased 2% to $3.1 billion compared to the prior year period driven by 6% organic revenue growth, partially offset by a 4% unfavorable impact from foreign currency translation.

Total operating expenses in the first quarter decreased 1% to $2.3 billion compared to the prior year period due primarily to a $93 million favorable impact from foreign currency translation, $45 million of incremental savings related to restructuring and other operational improvement initiatives, and a $21 million decrease in expenses related to divestitures, net of acquisitions, partially offset by a $17 million increase in restructuring charges and an increase in expenses associated with 6% organic revenue growth.

Restructuring expenses were $91 million in the first quarter, primarily driven by other costs associated with restructuring and separation initiatives and workforce reductions. As previously announced, the Company expects to invest $1,125 million in total cash over the three-year period, which will be completed in the fourth quarter of 2019. In addition, the Company expects to incur approximately $100 million of non-cash charges associated with the program. To date, the Company has incurred $1,073 million, or 88%, of the total estimated restructuring charges and $818 million, or 73% of the total estimated cash spend. In addition to the restructuring charges, the Company continues to estimate $200 million of incremental capital expenditures associated with the three-year program, of which $104 million, or 52%, has been incurred to date. An analysis of restructuring and related costs by type is detailed on page 15 of this press release.

Restructuring savings in the first quarter related to restructuring and other operational improvement initiatives are estimated at $108 million, before any potential reinvestment, an increase of $45 million compared to the prior year period. Before any potential reinvestment of savings, restructuring and other operational improvement initiatives are expected to deliver run-rate savings of $500 million annually by the end of 2019. To date, the Company has achieved $405 million, or 81%, of the total estimated annualized savings, before any potential reinvestment.

Foreign currency exchange rates in the first quarter had a $34 million, or $0.12 per share, unfavorable impact on U.S. GAAP net income, and a $32 million, or $0.13 per share, unfavorable impact on adjusted net income if the Company were to translate prior year quarter results at current quarter foreign exchange rates. The Company also incurred $6 million, or $0.02 per share, of net losses due to the unfavorable impact of exchange rates on the remeasurement of assets and liabilities in non-functional currencies recorded in other expense. If currency were to remain stable at today's rates, we would expect an unfavorable impact of approximately $0.04 per share in the second quarter of 2019, an unfavorable impact of approximately $0.01 per share in the third quarter of 2019 and an immaterial impact in the fourth quarter of 2019.

Effective tax rate used in our U.S. GAAP financial statements in the first quarter was 15.7%, compared to 15.9% in the prior year period. After adjusting to exclude the applicable tax impact associated with certain non-GAAP adjustments, the adjusted effective tax rate for the first quarter of 2019 increased modestly to 16.9% compared to 16.5% in the prior year quarter. The adjusted effective tax rate in both periods includes a net favorable impact from certain discrete items. Certain items that impacted first quarter results and comparisons with the prior year period are detailed in the "Reconciliation of Non-GAAP Measures - Operating Income from Continuing Operations and Diluted Earnings Per Share" on page 10 of this press release.

Weighted average diluted shares outstanding decreased to 243.7 million in the first quarter compared to 250.2 million in the prior year period. The Company repurchased 0.6 million Class A Ordinary Shares for approximately $100 million in the quarter. As of March 31, 2019, the Company had $3.9 billion of remaining authorization under its share repurchase program.

FIRST QUARTER 2019 CASH FLOW SUMMARY
Cash flow from operations for the first three months of 2019 decreased 47%, or $66 million, to $74 million compared to the prior year period. Strong operational improvement and working capital improvements in payables were more than offset by approximately $85 million of net cash payments related to legacy litigation and $15 million of incremental cash restructuring charges.

Free cash flow, defined as cash flow from operations less capital expenditures, decreased 82%, or $78 million, to $17 million for the first three months of 2019 compared to the prior year period, reflecting a decrease in cash flow from operations and a $12 million increase in capital expenditures, including investments in our operating model.

FIRST QUARTER 2019 REVENUE REVIEW
The first 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 9 of this press release.

Three Months Ended
(millions) Mar 31, 2019 Mar 31, 2018 % Change Less: Currency Impact Less: Fiduciary Investment Income Less: Acquisitions, Divestitures & Other Organic Revenue Growth
Revenue
Commercial Risk Solutions $ 1,118 $ 1,184 (6)% (5)% —% (7)% 6%
Reinsurance Solutions 788 742 6 (3) 9
Retirement Solutions 420 424 (1) (4) 1 2
Health Solutions 486 451 8 (5) 8 5
Data & Analytic Services 336 294 14 (4) 13 5
Elimination (5) (5) N/A N/A N/A N/A N/A
Total revenue $ 3,143 $ 3,090 2% (4)% —% —% 6%

Total revenue increased $53 million, or 2%, to $3,143 million, compared to the prior year period, including organic revenue growth of 6% primarily driven by strong new business generation and retention globally across our core portfolio, as well as strong growth in specific areas of continued investment including transaction liability, cyber solutions, and delegated investment management.

Commercial Risk Solutions organic revenue growth increased 6% compared to the prior year period driven by growth across every major geography, highlighted by double-digit growth in Latin America and strong growth across North America and Asia. Results reflect strong global new business generation and management of the renewal book portfolio. In North America, double-digit new business generation was highlighted by strength in our transaction liability business in the U.S.

Reinsurance Solutions organic revenue growth increased 9% compared to the prior year period driven by strong net new business generation globally in treaty, as well as double-digit growth globally in facultative placements and in capital markets transactions. In addition, market impact was modestly positive on results in the first quarter.

Retirement Solutions organic revenue growth increased 2% compared to the prior year period driven by solid growth in investment consulting and solutions, including double-digit growth in delegated investment management. Results also reflect modest growth in our actuarial retirement businesses globally, and growth across Performance, Rewards, and Assessment.

Health Solutions organic revenue growth increased 5% compared to the prior year period driven by solid growth globally in health and benefits brokerage, highlighted by particular strength internationally, including double-digit growth in China.

Data & Analytic Services organic revenue growth increased 5% compared to the prior year period driven by growth globally across our Affinity business, with particular strength across both business and consumer solutions in the U.S. and EMEA.

 FIRST QUARTER 2019 EXPENSE REVIEW

Three Months Ended Three Months Ended
(millions) Mar 31, 2019 Mar 31, 2018 % Change Less: Currency Impact Less: Fiduciary Investment Income Less: Acquisitions, Divestitures & Other Organic Revenue Growth (millions) Mar 31, 2019 Mar 31, 2018 $Change %Change
Revenue Expenses
Commercial Risk Solutions $ 1,118 $ 1,184 (6)% (5)% —% (7)% 6% Compensation and benefits $ 1,584 $ 1,616 $ (32) (2)%
Reinsurance Solutions 788 742 6 (3) 9 Information technology 117 115 2 2
Retirement Solutions 420 424 (1) (4) 1 2 Premises 87 93 (6) (6)
Health Solutions 486 451 8 (5) 8 5 Depreciation of fixed assets 40 39 1 3
Data & Analytic Services 336 294 14 (4) 13 5 Amortization and impairment of intangible assets 97 110 (13) (12)
Elimination (5) (5) N/A N/A N/A N/A N/A Other general expenses 346 318 28 9
Total revenue $ 3,143 $ 3,090 2% (4)% —% —% 6% Total operating expenses $ 2,271 $ 2,291 $ (20) (1)%

Compensation and benefits expense decreased $32 million, or 2%, compared to the prior year period due primarily to a $69 million favorable impact from foreign currency translation and $48 million of incremental savings related to restructuring and other operational improvement initiatives, partially offset by an increase in expense associated with 6% organic revenue growth.

Information technology expense increased $2 million, or 2%, compared to the prior year period due primarily to an increase in investments supporting growth initiatives and an increase in expense associated with 6% organic revenue growth.

Premises expense decreased $6 million, or 6%, compared to the prior year period due primarily to $5 million of incremental savings related to restructuring and other operational improvement initiatives and a $4 million favorable impact from foreign currency translation, partially offset by a $7 million increase in restructuring costs.

Depreciation of fixed assets increased $1 million, or 3%, compared to the prior year period.

Amortization and impairment of intangible assets decreased $13 million, or 12%, compared to the prior year period primarily due to a $6 million decrease related to divestitures, net of acquisitions, and a favorable impact from foreign currency translation.

Other general expenses increased $28 million, or 9%, compared to the prior year period due primarily to a $19 million increase in restructuring costs, a $9 million decrease in savings related to restructuring and other operational improvement initiatives, and an increase in expense associated with 6% organic revenue growth, partially offset by a $14 million favorable impact from foreign currency translation.

FIRST QUARTER 2019 INCOME SUMMARY
The first quarter 2019 financial results discussed herein represent performance from continuing operations unless otherwise noted. In addition, certain noteworthy items impacted adjusted operating income and adjusted operating margins in the first quarters of 2019 and 2018, which are also described in detail in "Reconciliation of Non-GAAP Measures - Operating Income from Continuing Operations and Diluted Earnings Per Share" on page 10 of this press release.

Three Months Ended Three Months Ended Three Months Ended
(millions) Mar 31, 2019 Mar 31, 2018 % Change Less: Currency Impact Less: Fiduciary Investment Income Less: Acquisitions, Divestitures & Other Organic Revenue Growth (millions) Mar 31, 2019 Mar 31, 2018 $Change %Change (millions) Mar 31,  2019 Mar 31,  2018 % Change
Revenue Expenses Revenue $ 3,143 $ 3,090 2%
Commercial Risk Solutions $ 1,118 $ 1,184 (6)% (5)% —% (7)% 6% Compensation and benefits $ 1,584 $ 1,616 $ (32) (2)% Expenses 2,271 2,291 (1)
Reinsurance Solutions 788 742 6 (3) 9 Information technology 117 115 2 2 Operating income $ 872 $ 799 9%
Retirement Solutions 420 424 (1) (4) 1 2 Premises 87 93 (6) (6) Operating margin 27.7% 25.9%
Health Solutions 486 451 8 (5) 8 5 Depreciation of fixed assets 40 39 1 3 Operating income - as adjusted $ 1,060 $ 983 8%
Data & Analytic Services 336 294 14 (4) 13 5 Amortization and impairment of intangible assets 97 110 (13) (12) Operating margin - as adjusted 33.7% 31.8%
Elimination (5) (5) N/A N/A N/A N/A N/A Other general expenses 346 318 28 9
Total revenue $ 3,143 $ 3,090 2% (4)% —% —% 6% Total operating expenses $ 2,271 $ 2,291 $ (20) (1)%

Operating income increased $73 million, or 9%, compared to the prior year period. Adjusting for certain items detailed on page 10 of this press release, operating income increased $77 million, or 8%, and operating margin increased +190 basis points to 33.7%, each compared to the prior year period. Adjusted operating income and margin primarily includes a favorable impact from strong organic revenue growth of 6% and incremental savings from restructuring and other operational improvements of $45 million, or +140 basis points, partially offset by an unfavorable impact from foreign currency translation of $38 million. Operating income growth and operating margin expansion compared to the prior year period also reflects the absorption of near-term reinvestment of restructuring savings in client-facing colleagues and capabilities to support long-term Aon United growth initiatives.

Interest income decreased $2 million to $2 million. Interest expense increased $2 million to $72 million compared to the prior year period reflecting higher outstanding term debt and an increase in commercial paper borrowings. Other pension income decreased $5 million to $4 million. Other expense was a $4 million impact on the quarter as net losses of $6 million due to the unfavorable impact of exchange rates on the remeasurement of assets and liabilities in non-functional currencies and $4 million of losses on certain company owned life insurance plans was partially offset by a gain on sale of certain businesses. The prior year period included net losses related to the unfavorable impact of exchange rates on the remeasurement of assets and liabilities in non-functional currencies and losses related to certain long-term investments.

DISCONTINUED OPERATIONS
Net income from discontinued operations was $0 million, or an immaterial impact per share, compared to net income of $6 million, or $0.02 per share, in the prior year period.

Conference Call, Presentation Slides and Webcast Details
The Company will host a conference call on Friday, April 26, 2019 at 7:30 a.m., central time. Interested parties can listen to the conference call via a live audio webcast and view the presentation slides at www.aon.com.

About Aon
Aon plc (NYSE:AON) Aon is a leading global professional services firm providing a broad range of risk, retirement and health solutions. Our 50,000 colleagues in 120 countries empower results for clients by using proprietary data and analytics to deliver insights that reduce volatility and improve performance.

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, including the U.K.'s expected withdrawal from the European Union; changes in the competitive environment; fluctuations in exchange and interest rates 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 or increasing borrowing costs; rating agency actions that could affect Aon's ability to borrow funds;; volatility in our tax rate due to a variety of different factors, including U.S. tax reform; 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 U.S., U.K. and other countries; the impact of any inquiries relating to compliance with the U.S. Foreign Corrupt Practices Act and non-U.S. anti-corruption laws and with U.S. and non-U.S. trade sanctions regimes; failure to protect intellectual property rights or allegations that we infringe on the intellectual property rights of others; the effects of English law on our operating flexibility and the enforcement of judgments against Aon; the failure to retain and attract qualified personnel; international risks associated with Aon's global operations; the effect or natural or man-made disasters; the potential of a system or network breach or disruption resulting in operational interruption or improper disclosure of personal data; Aon's ability to develop and implement new technology; the damage to our reputation among clients, markets or third parties; the actions taken by third parties that perform aspects of our business operations and client services;  the extent to which Aon manages certain risks created in connection with the various services, including fiduciary and investments and other advisory services and business process outsourcing services, among others, that Aon currently provides, or will provide in the future, to clients; Aon's ability to continue, and the costs and the costs and risks associated with, growing, developing and integrating companies that it acquires or new lines of business; changes in commercial property and casualty markets, commercial premium rates or methods of compensation; changes in the health care system or our relationships with insurance carriers; Aon's ability to implement initiatives intended to yield cost savings, and the ability to achieve those cost savings; risks and uncertainties in connection with the sale of our divested business; and our ability to realize the expected benefits from our restructuring plan.

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 SEC. See Aon's Annual Report on Form 10-K for the year ended December 31, 2018 and its Quarterly Report on Form 10-Q for the quarter ended March 31, 2019 for a further discussion of these and other risks and uncertainties applicable to Aon's businesses. These factors may be revised or supplemented in subsequent reports.  Aon is under no obligation, and expressly disclaims any obligation, to update or alter any forward-looking statement that it may make from time to time, whether as a result of new information, future events or otherwise.

Explanation of Non-GAAP Measures

This communication includes supplemental information related to organic revenue growth, free cash flow, adjusted operating margin, and adjusted earnings per share for continuing operations that exclude the effects of intangible asset amortization, restructuring, capital expenditures, and certain other noteworthy items that affected results for the comparable periods. Organic revenue growth includes the impact of intercompany activity and excludes foreign exchange rate changes, acquisitions, divestitures, transfers between revenue lines, fiduciary investment income, and gains or losses on derivatives accounted for as hedges. 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 to the closest U.S. GAAP measure for each non-GAAP measure presented in this press release are provided in the attached appendices.  Supplemental organic revenue growth information and additional measures that exclude the effects of certain items noted above do not affect net income or any other U.S. GAAP reported amounts.  Free cash flow is cash flow from operating activity less capital expenditures. The effective tax rate, as adjusted, excludes the applicable tax impact associated with expenses for estimated intangible asset amortization, restructuring, and certain other noteworthy items. Management believes that these measures are important to make meaningful period-to-period comparisons and that this supplemental information is helpful to investors.  They should be viewed in addition to, not in lieu of, the Company's Consolidated Financial Statements.  Industry peers provide similar supplemental information regarding their performance, although they may not make identical adjustments.

Three Months Ended Three Months Ended Three Months Ended Investor Contact: Media Contact:
(millions) Mar 31, 2019 Mar 31, 2018 % Change Less: Currency Impact Less: Fiduciary Investment Income Less: Acquisitions, Divestitures & Other Organic Revenue Growth (millions) Mar 31, 2019 Mar 31, 2018 $Change %Change (millions) Mar 31,  2019 Mar 31,  2018 % Change Investor Relations Ellen Barry
Revenue Expenses Revenue $ 3,143 $ 3,090 2% 312-381-3310 Global Head of Communications
Commercial Risk Solutions $ 1,118 $ 1,184 (6)% (5)% —% (7)% 6% Compensation and benefits $ 1,584 $ 1,616 $ (32) (2)% Expenses 2,271 2,291 (1) investor.relations@aon.com 312-381-2140
Reinsurance Solutions 788 742 6 (3) 9 Information technology 117 115 2 2 Operating income $ 872 $ 799 9%
Retirement Solutions 420 424 (1) (4) 1 2 Premises 87 93 (6) (6) Operating margin 27.7% 25.9%
Health Solutions 486 451 8 (5) 8 5 Depreciation of fixed assets 40 39 1 3 Operating income - as adjusted $ 1,060 $ 983 8%
Data & Analytic Services 336 294 14 (4) 13 5 Amortization and impairment of intangible assets 97 110 (13) (12) Operating margin - as adjusted 33.7% 31.8%
Elimination (5) (5) N/A N/A N/A N/A N/A Other general expenses 346 318 28 9
Total revenue $ 3,143 $ 3,090 2% (4)% —% —% 6% Total operating expenses $ 2,271 $ 2,291 $ (20) (1)%

 

Three Months Ended Three Months Ended Three Months Ended Investor Contact: Media Contact: Aon plc
(millions) Mar 31, 2019 Mar 31, 2018 % Change Less: Currency Impact Less: Fiduciary Investment Income Less: Acquisitions, Divestitures & Other Organic Revenue Growth (millions) Mar 31, 2019 Mar 31, 2018 $Change %Change (millions) Mar 31,  2019 Mar 31,  2018 % Change Investor Relations Ellen Barry Condensed Consolidated Statements of Income (Unaudited)
Revenue Expenses Revenue $ 3,143 $ 3,090 2% 312-381-3310 Global Head of Communications
Commercial Risk Solutions $ 1,118 $ 1,184 (6)% (5)% —% (7)% 6% Compensation and benefits $ 1,584 $ 1,616 $ (32) (2)% Expenses 2,271 2,291 (1) investor.relations@aon.com 312-381-2140 Three Months Ended
Reinsurance Solutions 788 742 6 (3) 9 Information technology 117 115 2 2 Operating income $ 872 $ 799 9% (millions, except per share data) Mar 31,  2019 Mar 31,  2018 % Change
Retirement Solutions 420 424 (1) (4) 1 2 Premises 87 93 (6) (6) Operating margin 27.7% 25.9% Revenue
Health Solutions 486 451 8 (5) 8 5 Depreciation of fixed assets 40 39 1 3 Operating income - as adjusted $ 1,060 $ 983 8% Total revenue $ 3,143 $ 3,090 2%
Data & Analytic Services 336 294 14 (4) 13 5 Amortization and impairment of intangible assets 97 110 (13) (12) Operating margin - as adjusted 33.7% 31.8% Expenses
Elimination (5) (5) N/A N/A N/A N/A N/A Other general expenses 346 318 28 9 Compensation and benefits 1,584 1,616 (2)%
Total revenue $ 3,143 $ 3,090 2% (4)% —% —% 6% Total operating expenses $ 2,271 $ 2,291 $ (20) (1)% Information technology 117 115 2%
Premises 87 93 (6)%
Depreciation of fixed assets 40 39 3%
Amortization and impairment of intangible assets 97 110 (12)%
Other general expenses 346 318 9%
Total operating expenses 2,271 2,291 (1)%
Operating income 872 799 9%
Interest income 2 4 (50)%
Interest expense (72) (70) 3%
Other income (expense) (15) (100)%
Income from continuing operations before income taxes 802 718 12%
Income taxes (1) 126 114 11%
Net income from continuing operations 676 604 12%
Net income from discontinued operations 6 (100)%
Net income 676 610 11%
Less: Net income attributable to noncontrolling interests 17 16 6%
Net income attributable to Aon shareholders $ 659 $ 594 11%
Basic net income per share attributable to Aon shareholders
Continuing operations $ 2.72 $ 2.37 15%
Discontinued operations 0.02 (100)%
Net income $ 2.72 $ 2.39 14%
Diluted net income per share attributable to Aon shareholders
Continuing operations $ 2.70 $ 2.35 15%
Discontinued operations 0.02 (100)%
Net income $ 2.70 $ 2.37 14%
Weighted average ordinary shares outstanding - basic 242.2 248.5 (3)%
Weighted average ordinary shares outstanding - diluted 243.7 250.2 (3) %

Three Months Ended Three Months Ended Three Months Ended Investor Contact: Media Contact: Aon plc
(millions) Mar 31, 2019 Mar 31, 2018 % Change Less: Currency Impact Less: Fiduciary Investment Income Less: Acquisitions, Divestitures & Other Organic Revenue Growth (millions) Mar 31, 2019 Mar 31, 2018 $Change %Change (millions) Mar 31,  2019 Mar 31,  2018 % Change Investor Relations Ellen Barry Condensed Consolidated Statements of Income (Unaudited) (1) The effective tax rate was 15.7% and 15.9% for the three months ended March 31, 2019 and 2018, respectively.
Revenue Expenses Revenue $ 3,143 $ 3,090 2% 312-381-3310 Global Head of Communications
Commercial Risk Solutions $ 1,118 $ 1,184 (6)% (5)% —% (7)% 6% Compensation and benefits $ 1,584 $ 1,616 $ (32) (2)% Expenses 2,271 2,291 (1) investor.relations@aon.com 312-381-2140 Three Months Ended
Reinsurance Solutions 788 742 6 (3) 9 Information technology 117 115 2 2 Operating income $ 872 $ 799 9% (millions, except per share data) Mar 31,  2019 Mar 31,  2018 % Change
Retirement Solutions 420 424 (1) (4) 1 2 Premises 87 93 (6) (6) Operating margin 27.7% 25.9% Revenue
Health Solutions 486 451 8 (5) 8 5 Depreciation of fixed assets 40 39 1 3 Operating income - as adjusted $ 1,060 $ 983 8% Total revenue $ 3,143 $ 3,090 2%
Data & Analytic Services 336 294 14 (4) 13 5 Amortization and impairment of intangible assets 97 110 (13) (12) Operating margin - as adjusted 33.7% 31.8% Expenses
Elimination (5) (5) N/A N/A N/A N/A N/A Other general expenses 346 318 28 9 Compensation and benefits 1,584 1,616 (2)%
Total revenue $ 3,143 $ 3,090 2% (4)% —% —% 6% Total operating expenses $ 2,271 $ 2,291 $ (20) (1)% Information technology 117 115 2%
Premises 87 93 (6)%
Depreciation of fixed assets 40 39 3%
Amortization and impairment of intangible assets 97 110 (12)%
Other general expenses 346 318 9%
Total operating expenses 2,271 2,291 (1)%
Operating income 872 799 9%
Interest income 2 4 (50)%
Interest expense (72) (70) 3%
Other income (expense) (15) (100)%
Income from continuing operations before income taxes 802 718 12%
Income taxes (1) 126 114 11%
Net income from continuing operations 676 604 12%
Net income from discontinued operations 6 (100)%
Net income 676 610 11%
Less: Net income attributable to noncontrolling interests 17 16 6%
Net income attributable to Aon shareholders $ 659 $ 594 11%
Basic net income per share attributable to Aon shareholders
Continuing operations $ 2.72 $ 2.37 15%
Discontinued operations 0.02 (100)%
Net income $ 2.72 $ 2.39 14%
Diluted net income per share attributable to Aon shareholders
Continuing operations $ 2.70 $ 2.35 15%
Discontinued operations 0.02 (100)%
Net income $ 2.70 $ 2.37 14%
Weighted average ordinary shares outstanding - basic 242.2 248.5 (3)%
Weighted average ordinary shares outstanding - diluted 243.7 250.2 (3) %

 

Three Months Ended Three Months Ended Three Months Ended Investor Contact: Media Contact: Aon plc Aon plc
(millions) Mar 31, 2019 Mar 31, 2018 % Change Less: Currency Impact Less: Fiduciary Investment Income Less: Acquisitions, Divestitures & Other Organic Revenue Growth (millions) Mar 31, 2019 Mar 31, 2018 $Change %Change (millions) Mar 31,  2019 Mar 31,  2018 % Change Investor Relations Ellen Barry Condensed Consolidated Statements of Income (Unaudited) (1) The effective tax rate was 15.7% and 15.9% for the three months ended March 31, 2019 and 2018, respectively. Reconciliation of Non-GAAP Measures - Organic Revenue Growth and Free Cash Flow (Unaudited)
Revenue Expenses Revenue $ 3,143 $ 3,090 2% 312-381-3310 Global Head of Communications
Commercial Risk Solutions $ 1,118 $ 1,184 (6)% (5)% —% (7)% 6% Compensation and benefits $ 1,584 $ 1,616 $ (32) (2)% Expenses 2,271 2,291 (1) investor.relations@aon.com 312-381-2140 Three Months Ended Organic Revenue Growth From Continuing Operations (Unaudited)
Reinsurance Solutions 788 742 6 (3) 9 Information technology 117 115 2 2 Operating income $ 872 $ 799 9% (millions, except per share data) Mar 31,  2019 Mar 31,  2018 % Change
Retirement Solutions 420 424 (1) (4) 1 2 Premises 87 93 (6) (6) Operating margin 27.7% 25.9% Revenue Three Months Ended
Health Solutions 486 451 8 (5) 8 5 Depreciation of fixed assets 40 39 1 3 Operating income - as adjusted $ 1,060 $ 983 8% Total revenue $ 3,143 $ 3,090 2% (millions) Mar 31, 2019 Mar 31, 2018 % Change Less: Currency Impact (1) Less: FiduciaryInvestmentIncome (2) Less: Acquisitions, Divestitures & Other Organic Revenue Growth (3)
Data & Analytic Services 336 294 14 (4) 13 5 Amortization and impairment of intangible assets 97 110 (13) (12) Operating margin - as adjusted 33.7% 31.8% Expenses Revenue
Elimination (5) (5) N/A N/A N/A N/A N/A Other general expenses 346 318 28 9 Compensation and benefits 1,584 1,616 (2)% Commercial Risk Solutions $ 1,118 $ 1,184 (6)% (5) —% (7)% 6%
Total revenue $ 3,143 $ 3,090 2% (4)% —% —% 6% Total operating expenses $ 2,271 $ 2,291 $ (20) (1)% Information technology 117 115 2% Reinsurance Solutions 788 742 6 (3) 9
Premises 87 93 (6)% Retirement Solutions 420 424 (1) (4) 1 2
Depreciation of fixed assets 40 39 3% Health Solutions 486 451 8 (5) 8 5
Amortization and impairment of intangible assets 97 110 (12)% Data & Analytic Services 336 294 14 (4) 13 5
Other general expenses 346 318 9% Elimination (5) (5) N/A N/A N/A N/A N/A
Total operating expenses 2,271 2,291 (1)% Total revenue $ 3,143 $ 3,090 2% (4) —% —% 6%
Operating income 872 799 9%
Interest income 2 4 (50)%
Interest expense (72) (70) 3%
Other income (expense) (15) (100)%
Income from continuing operations before income taxes 802 718 12%
Income taxes (1) 126 114 11%
Net income from continuing operations 676 604 12%
Net income from discontinued operations 6 (100)%
Net income 676 610 11%
Less: Net income attributable to noncontrolling interests 17 16 6%
Net income attributable to Aon shareholders $ 659 $ 594 11%
Basic net income per share attributable to Aon shareholders
Continuing operations $ 2.72 $ 2.37 15%
Discontinued operations 0.02 (100)%
Net income $ 2.72 $ 2.39 14%
Diluted net income per share attributable to Aon shareholders
Continuing operations $ 2.70 $ 2.35 15%
Discontinued operations 0.02 (100)%
Net income $ 2.70 $ 2.37 14%
Weighted average ordinary shares outstanding - basic 242.2 248.5 (3)%
Weighted average ordinary shares outstanding - diluted 243.7 250.2 (3) %

Three Months Ended Three Months Ended Three Months Ended Investor Contact: Media Contact: Aon plc Aon plc
(millions) Mar 31, 2019 Mar 31, 2018 % Change Less: Currency Impact Less: Fiduciary Investment Income Less: Acquisitions, Divestitures & Other Organic Revenue Growth (millions) Mar 31, 2019 Mar 31, 2018 $Change %Change (millions) Mar 31,  2019 Mar 31,  2018 % Change Investor Relations Ellen Barry Condensed Consolidated Statements of Income (Unaudited) (1) The effective tax rate was 15.7% and 15.9% for the three months ended March 31, 2019 and 2018, respectively. Reconciliation of Non-GAAP Measures - Organic Revenue Growth and Free Cash Flow (Unaudited) (1) Currency impact is determined by translating last year's revenue at this year's foreign exchange rates.
Revenue Expenses Revenue $ 3,143 $ 3,090 2% 312-381-3310 Global Head of Communications (2) Fiduciary Investment Income for the three months ended March 31, 2019 and 2018 was $19 million and $10 million, respectively.
Commercial Risk Solutions $ 1,118 $ 1,184 (6)% (5)% —% (7)% 6% Compensation and benefits $ 1,584 $ 1,616 $ (32) (2)% Expenses 2,271 2,291 (1) investor.relations@aon.com 312-381-2140 Three Months Ended Organic Revenue Growth From Continuing Operations (Unaudited) (3) Organic revenue growth includes the impact of intercompany activity and excludes the impact of changes in foreign exchange rates, fiduciary investment income, acquisitions, divestitures, transfers between revenue lines, and gains or losses on derivatives accounted for as hedges.
Reinsurance Solutions 788 742 6 (3) 9 Information technology 117 115 2 2 Operating income $ 872 $ 799 9% (millions, except per share data) Mar 31,  2019 Mar 31,  2018 % Change
Retirement Solutions 420 424 (1) (4) 1 2 Premises 87 93 (6) (6) Operating margin 27.7% 25.9% Revenue Three Months Ended
Health Solutions 486 451 8 (5) 8 5 Depreciation of fixed assets 40 39 1 3 Operating income - as adjusted $ 1,060 $ 983 8% Total revenue $ 3,143 $ 3,090 2% (millions) Mar 31, 2019 Mar 31, 2018 % Change Less: Currency Impact (1) Less: FiduciaryInvestmentIncome (2) Less: Acquisitions, Divestitures & Other Organic Revenue Growth (3)
Data & Analytic Services 336 294 14 (4) 13 5 Amortization and impairment of intangible assets 97 110 (13) (12) Operating margin - as adjusted 33.7% 31.8% Expenses Revenue
Elimination (5) (5) N/A N/A N/A N/A N/A Other general expenses 346 318 28 9 Compensation and benefits 1,584 1,616 (2)% Commercial Risk Solutions $ 1,118 $ 1,184 (6)% (5) —% (7)% 6%
Total revenue $ 3,143 $ 3,090 2% (4)% —% —% 6% Total operating expenses $ 2,271 $ 2,291 $ (20) (1)% Information technology 117 115 2% Reinsurance Solutions 788 742 6 (3) 9
Premises 87 93 (6)% Retirement Solutions 420 424 (1) (4) 1 2
Depreciation of fixed assets 40 39 3% Health Solutions 486 451 8 (5) 8 5
Amortization and impairment of intangible assets 97 110 (12)% Data & Analytic Services 336 294 14 (4) 13 5
Other general expenses 346 318 9% Elimination (5) (5) N/A N/A N/A N/A N/A
Total operating expenses 2,271 2,291 (1)% Total revenue $ 3,143 $ 3,090 2% (4) —% —% 6%
Operating income 872 799 9%
Interest income 2 4 (50)%
Interest expense (72) (70) 3%
Other income (expense) (15) (100)%
Income from continuing operations before income taxes 802 718 12%
Income taxes (1) 126 114 11%
Net income from continuing operations 676 604 12%
Net income from discontinued operations 6 (100)%
Net income 676 610 11%
Less: Net income attributable to noncontrolling interests 17 16 6%
Net income attributable to Aon shareholders $ 659 $ 594 11%
Basic net income per share attributable to Aon shareholders
Continuing operations $ 2.72 $ 2.37 15%
Discontinued operations 0.02 (100)%
Net income $ 2.72 $ 2.39 14%
Diluted net income per share attributable to Aon shareholders
Continuing operations $ 2.70 $ 2.35 15%
Discontinued operations 0.02 (100)%
Net income $ 2.70 $ 2.37 14%
Weighted average ordinary shares outstanding - basic 242.2 248.5 (3)%
Weighted average ordinary shares outstanding - diluted 243.7 250.2 (3) %

 

Three Months Ended Three Months Ended Three Months Ended Investor Contact: Media Contact: Aon plc Aon plc Free Cash Flow from Operations (Unaudited)
(millions) Mar 31, 2019 Mar 31, 2018 % Change Less: Currency Impact Less: Fiduciary Investment Income Less: Acquisitions, Divestitures & Other Organic Revenue Growth (millions) Mar 31, 2019 Mar 31, 2018 $Change %Change (millions) Mar 31,  2019 Mar 31,  2018 % Change Investor Relations Ellen Barry Condensed Consolidated Statements of Income (Unaudited) (1) The effective tax rate was 15.7% and 15.9% for the three months ended March 31, 2019 and 2018, respectively. Reconciliation of Non-GAAP Measures - Organic Revenue Growth and Free Cash Flow (Unaudited) (1) Currency impact is determined by translating last year's revenue at this year's foreign exchange rates.
Revenue Expenses Revenue $ 3,143 $ 3,090 2% 312-381-3310 Global Head of Communications (2) Fiduciary Investment Income for the three months ended March 31, 2019 and 2018 was $19 million and $10 million, respectively. Three Months Ended
Commercial Risk Solutions $ 1,118 $ 1,184 (6)% (5)% —% (7)% 6% Compensation and benefits $ 1,584 $ 1,616 $ (32) (2)% Expenses 2,271 2,291 (1) investor.relations@aon.com 312-381-2140 Three Months Ended Organic Revenue Growth From Continuing Operations (Unaudited) (3) Organic revenue growth includes the impact of intercompany activity and excludes the impact of changes in foreign exchange rates, fiduciary investment income, acquisitions, divestitures, transfers between revenue lines, and gains or losses on derivatives accounted for as hedges. (millions) Mar 31, 2019 Mar 31, 2018 %Change
Reinsurance Solutions 788 742 6 (3) 9 Information technology 117 115 2 2 Operating income $ 872 $ 799 9% (millions, except per share data) Mar 31,  2019 Mar 31,  2018 % Change Cash Provided by Operating Activities $ 74 $ 140 (47)%
Retirement Solutions 420 424 (1) (4) 1 2 Premises 87 93 (6) (6) Operating margin 27.7% 25.9% Revenue Three Months Ended Capital Expenditures Used for Operations (57) (45) 27
Health Solutions 486 451 8 (5) 8 5 Depreciation of fixed assets 40 39 1 3 Operating income - as adjusted $ 1,060 $ 983 8% Total revenue $ 3,143 $ 3,090 2% (millions) Mar 31, 2019 Mar 31, 2018 % Change Less: Currency Impact (1) Less: FiduciaryInvestmentIncome (2) Less: Acquisitions, Divestitures & Other Organic Revenue Growth (3) Free Cash Flow Provided by Operations (1) $ 17 $ 95 (82)%
Data & Analytic Services 336 294 14 (4) 13 5 Amortization and impairment of intangible assets 97 110 (13) (12) Operating margin - as adjusted 33.7% 31.8% Expenses Revenue
Elimination (5) (5) N/A N/A N/A N/A N/A Other general expenses 346 318 28 9 Compensation and benefits 1,584 1,616 (2)% Commercial Risk Solutions $ 1,118 $ 1,184 (6)% (5) —% (7)% 6%
Total revenue $ 3,143 $ 3,090 2% (4)% —% —% 6% Total operating expenses $ 2,271 $ 2,291 $ (20) (1)% Information technology 117 115 2% Reinsurance Solutions 788 742 6 (3) 9
Premises 87 93 (6)% Retirement Solutions 420 424 (1) (4) 1 2
Depreciation of fixed assets 40 39 3% Health Solutions 486 451 8 (5) 8 5
Amortization and impairment of intangible assets 97 110 (12)% Data & Analytic Services 336 294 14 (4) 13 5
Other general expenses 346 318 9% Elimination (5) (5) N/A N/A N/A N/A N/A
Total operating expenses 2,271 2,291 (1)% Total revenue $ 3,143 $ 3,090 2% (4) —% —% 6%
Operating income 872 799 9%
Interest income 2 4 (50)%
Interest expense (72) (70) 3%
Other income (expense) (15) (100)%
Income from continuing operations before income taxes 802 718 12%
Income taxes (1) 126 114 11%
Net income from continuing operations 676 604 12%
Net income from discontinued operations 6 (100)%
Net income 676 610 11%
Less: Net income attributable to noncontrolling interests 17 16 6%
Net income attributable to Aon shareholders $ 659 $ 594 11%
Basic net income per share attributable to Aon shareholders
Continuing operations $ 2.72 $ 2.37 15%
Discontinued operations 0.02 (100)%
Net income $ 2.72 $ 2.39 14%
Diluted net income per share attributable to Aon shareholders
Continuing operations $ 2.70 $ 2.35 15%
Discontinued operations 0.02 (100)%
Net income $ 2.70 $ 2.37 14%
Weighted average ordinary shares outstanding - basic 242.2 248.5 (3)%
Weighted average ordinary shares outstanding - diluted 243.7 250.2 (3) %

Three Months Ended Three Months Ended Three Months Ended Investor Contact: Media Contact: Aon plc Aon plc Free Cash Flow from Operations (Unaudited)
(millions) Mar 31, 2019 Mar 31, 2018 % Change Less: Currency Impact Less: Fiduciary Investment Income Less: Acquisitions, Divestitures & Other Organic Revenue Growth (millions) Mar 31, 2019 Mar 31, 2018 $Change %Change (millions) Mar 31,  2019 Mar 31,  2018 % Change Investor Relations Ellen Barry Condensed Consolidated Statements of Income (Unaudited) (1) The effective tax rate was 15.7% and 15.9% for the three months ended March 31, 2019 and 2018, respectively. Reconciliation of Non-GAAP Measures - Organic Revenue Growth and Free Cash Flow (Unaudited) (1) Currency impact is determined by translating last year's revenue at this year's foreign exchange rates. (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.
Revenue Expenses Revenue $ 3,143 $ 3,090 2% 312-381-3310 Global Head of Communications (2) Fiduciary Investment Income for the three months ended March 31, 2019 and 2018 was $19 million and $10 million, respectively. Three Months Ended
Commercial Risk Solutions $ 1,118 $ 1,184 (6)% (5)% —% (7)% 6% Compensation and benefits $ 1,584 $ 1,616 $ (32) (2)% Expenses 2,271 2,291 (1) investor.relations@aon.com 312-381-2140 Three Months Ended Organic Revenue Growth From Continuing Operations (Unaudited) (3) Organic revenue growth includes the impact of intercompany activity and excludes the impact of changes in foreign exchange rates, fiduciary investment income, acquisitions, divestitures, transfers between revenue lines, and gains or losses on derivatives accounted for as hedges. (millions) Mar 31, 2019 Mar 31, 2018 %Change
Reinsurance Solutions 788 742 6 (3) 9 Information technology 117 115 2 2 Operating income $ 872 $ 799 9% (millions, except per share data) Mar 31,  2019 Mar 31,  2018 % Change Cash Provided by Operating Activities $ 74 $ 140 (47)%
Retirement Solutions 420 424 (1) (4) 1 2 Premises 87 93 (6) (6) Operating margin 27.7% 25.9% Revenue Three Months Ended Capital Expenditures Used for Operations (57) (45) 27
Health Solutions 486 451 8 (5) 8 5 Depreciation of fixed assets 40 39 1 3 Operating income - as adjusted $ 1,060 $ 983 8% Total revenue $ 3,143 $ 3,090 2% (millions) Mar 31, 2019 Mar 31, 2018 % Change Less: Currency Impact (1) Less: FiduciaryInvestmentIncome (2) Less: Acquisitions, Divestitures & Other Organic Revenue Growth (3) Free Cash Flow Provided by Operations (1) $ 17 $ 95 (82)%
Data & Analytic Services 336 294 14 (4) 13 5 Amortization and impairment of intangible assets 97 110 (13) (12) Operating margin - as adjusted 33.7% 31.8% Expenses Revenue
Elimination (5) (5) N/A N/A N/A N/A N/A Other general expenses 346 318 28 9 Compensation and benefits 1,584 1,616 (2)% Commercial Risk Solutions $ 1,118 $ 1,184 (6)% (5) —% (7)% 6%
Total revenue $ 3,143 $ 3,090 2% (4)% —% —% 6% Total operating expenses $ 2,271 $ 2,291 $ (20) (1)% Information technology 117 115 2% Reinsurance Solutions 788 742 6 (3) 9
Premises 87 93 (6)% Retirement Solutions 420 424 (1) (4) 1 2
Depreciation of fixed assets 40 39 3% Health Solutions 486 451 8 (5) 8 5
Amortization and impairment of intangible assets 97 110 (12)% Data & Analytic Services 336 294 14 (4) 13 5
Other general expenses 346 318 9% Elimination (5) (5) N/A N/A N/A N/A N/A
Total operating expenses 2,271 2,291 (1)% Total revenue $ 3,143 $ 3,090 2% (4) —% —% 6%
Operating income 872 799 9%
Interest income 2 4 (50)%
Interest expense (72) (70) 3%
Other income (expense) (15) (100)%
Income from continuing operations before income taxes 802 718 12%
Income taxes (1) 126 114 11%
Net income from continuing operations 676 604 12%
Net income from discontinued operations 6 (100)%
Net income 676 610 11%
Less: Net income attributable to noncontrolling interests 17 16 6%
Net income attributable to Aon shareholders $ 659 $ 594 11%
Basic net income per share attributable to Aon shareholders
Continuing operations $ 2.72 $ 2.37 15%
Discontinued operations 0.02 (100)%
Net income $ 2.72 $ 2.39 14%
Diluted net income per share attributable to Aon shareholders
Continuing operations $ 2.70 $ 2.35 15%
Discontinued operations 0.02 (100)%
Net income $ 2.70 $ 2.37 14%
Weighted average ordinary shares outstanding - basic 242.2 248.5 (3)%
Weighted average ordinary shares outstanding - diluted 243.7 250.2 (3) %

 

Three Months Ended Three Months Ended Three Months Ended Investor Contact: Media Contact: Aon plc Aon plc Free Cash Flow from Operations (Unaudited) Aon plc
(millions) Mar 31, 2019 Mar 31, 2018 % Change Less: Currency Impact Less: Fiduciary Investment Income Less: Acquisitions, Divestitures & Other Organic Revenue Growth (millions) Mar 31, 2019 Mar 31, 2018 $Change %Change (millions) Mar 31,  2019 Mar 31,  2018 % Change Investor Relations Ellen Barry Condensed Consolidated Statements of Income (Unaudited) (1) The effective tax rate was 15.7% and 15.9% for the three months ended March 31, 2019 and 2018, respectively. Reconciliation of Non-GAAP Measures - Organic Revenue Growth and Free Cash Flow (Unaudited) (1) Currency impact is determined by translating last year's revenue at this year's foreign exchange rates. (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)
Revenue Expenses Revenue $ 3,143 $ 3,090 2% 312-381-3310 Global Head of Communications (2) Fiduciary Investment Income for the three months ended March 31, 2019 and 2018 was $19 million and $10 million, respectively. Three Months Ended
Commercial Risk Solutions $ 1,118 $ 1,184 (6)% (5)% —% (7)% 6% Compensation and benefits $ 1,584 $ 1,616 $ (32) (2)% Expenses 2,271 2,291 (1) investor.relations@aon.com 312-381-2140 Three Months Ended Organic Revenue Growth From Continuing Operations (Unaudited) (3) Organic revenue growth includes the impact of intercompany activity and excludes the impact of changes in foreign exchange rates, fiduciary investment income, acquisitions, divestitures, transfers between revenue lines, and gains or losses on derivatives accounted for as hedges. (millions) Mar 31, 2019 Mar 31, 2018 %Change Three Months Ended
Reinsurance Solutions 788 742 6 (3) 9 Information technology 117 115 2 2 Operating income $ 872 $ 799 9% (millions, except per share data) Mar 31,  2019 Mar 31,  2018 % Change Cash Provided by Operating Activities $ 74 $ 140 (47)% (millions, except percentages) Mar 31, 2019 Mar 31, 2018 %Change
Retirement Solutions 420 424 (1) (4) 1 2 Premises 87 93 (6) (6) Operating margin 27.7% 25.9% Revenue Three Months Ended Capital Expenditures Used for Operations (57) (45) 27 Revenue from continuing operations $ 3,143 $ 3,090 2%
Health Solutions 486 451 8 (5) 8 5 Depreciation of fixed assets 40 39 1 3 Operating income - as adjusted $ 1,060 $ 983 8% Total revenue $ 3,143 $ 3,090 2% (millions) Mar 31, 2019 Mar 31, 2018 % Change Less: Currency Impact (1) Less: FiduciaryInvestmentIncome (2) Less: Acquisitions, Divestitures & Other Organic Revenue Growth (3) Free Cash Flow Provided by Operations (1) $ 17 $ 95 (82)%
Data & Analytic Services 336 294 14 (4) 13 5 Amortization and impairment of intangible assets 97 110 (13) (12) Operating margin - as adjusted 33.7% 31.8% Expenses Revenue Operating income from continuing operations $ 872 $ 799 9%
Elimination (5) (5) N/A N/A N/A N/A N/A Other general expenses 346 318 28 9 Compensation and benefits 1,584 1,616 (2)% Commercial Risk Solutions $ 1,118 $ 1,184 (6)% (5) —% (7)% 6% Amortization and impairment of intangible assets 97 110
Total revenue $ 3,143 $ 3,090 2% (4)% —% —% 6% Total operating expenses $ 2,271 $ 2,291 $ (20) (1)% Information technology 117 115 2% Reinsurance Solutions 788 742 6 (3) 9 Restructuring 91 74
Premises 87 93 (6)% Retirement Solutions 420 424 (1) (4) 1 2 Operating income from continuing operations - as adjusted $ 1,060 $ 983 8%
Depreciation of fixed assets 40 39 3% Health Solutions 486 451 8 (5) 8 5 Operating margin from continuing operations 27.7% 25.9%
Amortization and impairment of intangible assets 97 110 (12)% Data & Analytic Services 336 294 14 (4) 13 5 Operating margin from continuing operations - as adjusted 33.7% 31.8%
Other general expenses 346 318 9% Elimination (5) (5) N/A N/A N/A N/A N/A Three Months Ended
Total operating expenses 2,271 2,291 (1)% Total revenue $ 3,143 $ 3,090 2% (4) —% —% 6% (millions, except percentages) Mar 31, 2019 Mar 31, 2018 %Change
Operating income 872 799 9% Operating income from continuing operations - as adjusted $ 1,060 $ 983 8%
Interest income 2 4 (50)% Interest income 2 4 (50)%
Interest expense (72) (70) 3% Interest expense (72) (70) 3%
Other income (expense) (15) (100)% Other income (expense):
Income from continuing operations before income taxes 802 718 12% Other income (expense) - pensions - as adjusted (2) 4 9 (56)%
Income taxes (1) 126 114 11% Other income (expense) - other (4) (17) (76)%
Net income from continuing operations 676 604 12% Total Other income (expense) - as adjusted (2) (8) (100)%
Net income from discontinued operations 6 (100)% Income before income taxes from continuing operations - as adjusted 990 909 9%
Net income 676 610 11% Income taxes expense (3) 167 150 11%
Less: Net income attributable to noncontrolling interests 17 16 6% Net income from continuing operations - as adjusted 823 759 8%
Net income attributable to Aon shareholders $ 659 $ 594 11% Less: Net income attributable to noncontrolling interests 17 16 6%
Net income attributable to Aon shareholders from continuing operations - as adjusted 806 743 8%
Basic net income per share attributable to Aon shareholders Net income (loss) from discontinued operation - as adjusted (4) (2) (100)%
Continuing operations $ 2.72 $ 2.37 15% Income from discontinued operations, net of tax $ 806 $ 741 9%
Discontinued operations 0.02 (100)% Diluted net income (loss) per share attributable to Aon shareholders
Net income $ 2.72 $ 2.39 14% Continuing operations - as adjusted $ 3.31 $ 2.97 11%
Diluted net income per share attributable to Aon shareholders Discontinued operations - as adjusted (0.01) (100)%
Continuing operations $ 2.70 $ 2.35 15% Net income - as adjusted $ 3.31 $ 2.96 12%
Discontinued operations 0.02 (100)% Weighted average ordinary shares outstanding - diluted 243.7 250.2 (3)%
Net income $ 2.70 $ 2.37 14% Effective Tax Rates
Weighted average ordinary shares outstanding - basic 242.2 248.5 (3)% Continuing Operations - U.S. GAAP 15.7% 15.9%
Weighted average ordinary shares outstanding - diluted 243.7 250.2 (3) % Continuing Operations - Non-GAAP 16.9% 16.5%
Discontinued Operations - U.S. GAAP —% 17.2%
Discontinued Operations - Non-GAAP (6) —% 46.5%

Three Months Ended Three Months Ended Three Months Ended Investor Contact: Media Contact: Aon plc Aon plc Free Cash Flow from Operations (Unaudited) Aon plc
(millions) Mar 31, 2019 Mar 31, 2018 % Change Less: Currency Impact Less: Fiduciary Investment Income Less: Acquisitions, Divestitures & Other Organic Revenue Growth (millions) Mar 31, 2019 Mar 31, 2018 $Change %Change (millions) Mar 31,  2019 Mar 31,  2018 % Change Investor Relations Ellen Barry Condensed Consolidated Statements of Income (Unaudited) (1) The effective tax rate was 15.7% and 15.9% for the three months ended March 31, 2019 and 2018, respectively. Reconciliation of Non-GAAP Measures - Organic Revenue Growth and Free Cash Flow (Unaudited) (1) Currency impact is determined by translating last year's revenue at this year's foreign exchange rates. (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) (1) Certain noteworthy items impacting operating income in 2019 and 2018 are described in this schedule. The items shown with the caption "as adjusted" are non-GAAP measures.
Revenue Expenses Revenue $ 3,143 $ 3,090 2% 312-381-3310 Global Head of Communications (2) Fiduciary Investment Income for the three months ended March 31, 2019 and 2018 was $19 million and $10 million, respectively. Three Months Ended (2) Adjusted Other income (expense) excludes Pension settlement charges of $7 million for three months ended March 31, 2018.
Commercial Risk Solutions $ 1,118 $ 1,184 (6)% (5)% —% (7)% 6% Compensation and benefits $ 1,584 $ 1,616 $ (32) (2)% Expenses 2,271 2,291 (1) investor.relations@aon.com 312-381-2140 Three Months Ended Organic Revenue Growth From Continuing Operations (Unaudited) (3) Organic revenue growth includes the impact of intercompany activity and excludes the impact of changes in foreign exchange rates, fiduciary investment income, acquisitions, divestitures, transfers between revenue lines, and gains or losses on derivatives accounted for as hedges. (millions) Mar 31, 2019 Mar 31, 2018 %Change Three Months Ended (3) Adjusted items are generally taxed at the estimated annual effective tax rate, except for the applicable tax impact associated with estimated restructuring plan expenses, accelerated tradename amortization, and non-cash pension settlement charges, which are adjusted at the related jurisdictional rate. In addition, tax expense excludes the tax impacts of payment of certain legacy litigation and enactment date impacts of US Tax Reform.
Reinsurance Solutions 788 742 6 (3) 9 Information technology 117 115 2 2 Operating income $ 872 $ 799 9% (millions, except per share data) Mar 31,  2019 Mar 31,  2018 % Change Cash Provided by Operating Activities $ 74 $ 140 (47)% (millions, except percentages) Mar 31, 2019 Mar 31, 2018 %Change (4) Adjusted income from discontinued operations, net of tax, excludes the gain on sale of discontinued operations of $8 million for the three months ended March 31, 2018. The effective tax rate was further adjusted for the applicable tax impact associated with the gain on sale, as applicable.
Retirement Solutions 420 424 (1) (4) 1 2 Premises 87 93 (6) (6) Operating margin 27.7% 25.9% Revenue Three Months Ended Capital Expenditures Used for Operations (57) (45) 27 Revenue from continuing operations $ 3,143 $ 3,090 2%
Health Solutions 486 451 8 (5) 8 5 Depreciation of fixed assets 40 39 1 3 Operating income - as adjusted $ 1,060 $ 983 8% Total revenue $ 3,143 $ 3,090 2% (millions) Mar 31, 2019 Mar 31, 2018 % Change Less: Currency Impact (1) Less: FiduciaryInvestmentIncome (2) Less: Acquisitions, Divestitures & Other Organic Revenue Growth (3) Free Cash Flow Provided by Operations (1) $ 17 $ 95 (82)%
Data & Analytic Services 336 294 14 (4) 13 5 Amortization and impairment of intangible assets 97 110 (13) (12) Operating margin - as adjusted 33.7% 31.8% Expenses Revenue Operating income from continuing operations $ 872 $ 799 9%
Elimination (5) (5) N/A N/A N/A N/A N/A Other general expenses 346 318 28 9 Compensation and benefits 1,584 1,616 (2)% Commercial Risk Solutions $ 1,118 $ 1,184 (6)% (5) —% (7)% 6% Amortization and impairment of intangible assets 97 110
Total revenue $ 3,143 $ 3,090 2% (4)% —% —% 6% Total operating expenses $ 2,271 $ 2,291 $ (20) (1)% Information technology 117 115 2% Reinsurance Solutions 788 742 6 (3) 9 Restructuring 91 74
Premises 87 93 (6)% Retirement Solutions 420 424 (1) (4) 1 2 Operating income from continuing operations - as adjusted $ 1,060 $ 983 8%
Depreciation of fixed assets 40 39 3% Health Solutions 486 451 8 (5) 8 5 Operating margin from continuing operations 27.7% 25.9%
Amortization and impairment of intangible assets 97 110 (12)% Data & Analytic Services 336 294 14 (4) 13 5 Operating margin from continuing operations - as adjusted 33.7% 31.8%
Other general expenses 346 318 9% Elimination (5) (5) N/A N/A N/A N/A N/A Three Months Ended
Total operating expenses 2,271 2,291 (1)% Total revenue $ 3,143 $ 3,090 2% (4) —% —% 6% (millions, except percentages) Mar 31, 2019 Mar 31, 2018 %Change
Operating income 872 799 9% Operating income from continuing operations - as adjusted $ 1,060 $ 983 8%
Interest income 2 4 (50)% Interest income 2 4 (50)%
Interest expense (72) (70) 3% Interest expense (72) (70) 3%
Other income (expense) (15) (100)% Other income (expense):
Income from continuing operations before income taxes 802 718 12% Other income (expense) - pensions - as adjusted (2) 4 9 (56)%
Income taxes (1) 126 114 11% Other income (expense) - other (4) (17) (76)%
Net income from continuing operations 676 604 12% Total Other income (expense) - as adjusted (2) (8) (100)%
Net income from discontinued operations 6 (100)% Income before income taxes from continuing operations - as adjusted 990 909 9%
Net income 676 610 11% Income taxes expense (3) 167 150 11%
Less: Net income attributable to noncontrolling interests 17 16 6% Net income from continuing operations - as adjusted 823 759 8%
Net income attributable to Aon shareholders $ 659 $ 594 11% Less: Net income attributable to noncontrolling interests 17 16 6%
Net income attributable to Aon shareholders from continuing operations - as adjusted 806 743 8%
Basic net income per share attributable to Aon shareholders Net income (loss) from discontinued operation - as adjusted (4) (2) (100)%
Continuing operations $ 2.72 $ 2.37 15% Income from discontinued operations, net of tax $ 806 $ 741 9%
Discontinued operations 0.02 (100)% Diluted net income (loss) per share attributable to Aon shareholders
Net income $ 2.72 $ 2.39 14% Continuing operations - as adjusted $ 3.31 $ 2.97 11%
Diluted net income per share attributable to Aon shareholders Discontinued operations - as adjusted (0.01) (100)%
Continuing operations $ 2.70 $ 2.35 15% Net income - as adjusted $ 3.31 $ 2.96 12%
Discontinued operations 0.02 (100)% Weighted average ordinary shares outstanding - diluted 243.7 250.2 (3)%
Net income $ 2.70 $ 2.37 14% Effective Tax Rates
Weighted average ordinary shares outstanding - basic 242.2 248.5 (3)% Continuing Operations - U.S. GAAP 15.7% 15.9%
Weighted average ordinary shares outstanding - diluted 243.7 250.2 (3) % Continuing Operations - Non-GAAP 16.9% 16.5%
Discontinued Operations - U.S. GAAP —% 17.2%
Discontinued Operations - Non-GAAP (6) —% 46.5%

 

Three Months Ended Three Months Ended Three Months Ended Investor Contact: Media Contact: Aon plc Aon plc Free Cash Flow from Operations (Unaudited) Aon plc Aon plc
(millions) Mar 31, 2019 Mar 31, 2018 % Change Less: Currency Impact Less: Fiduciary Investment Income Less: Acquisitions, Divestitures & Other Organic Revenue Growth (millions) Mar 31, 2019 Mar 31, 2018 $Change %Change (millions) Mar 31,  2019 Mar 31,  2018 % Change Investor Relations Ellen Barry Condensed Consolidated Statements of Income (Unaudited) (1) The effective tax rate was 15.7% and 15.9% for the three months ended March 31, 2019 and 2018, respectively. Reconciliation of Non-GAAP Measures - Organic Revenue Growth and Free Cash Flow (Unaudited) (1) Currency impact is determined by translating last year's revenue at this year's foreign exchange rates. (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) (1) Certain noteworthy items impacting operating income in 2019 and 2018 are described in this schedule. The items shown with the caption "as adjusted" are non-GAAP measures. Pro Forma Historical Reconciliation of Non-GAAP Measures - Operating Income and Diluted Earnings Per Share from Continuing Operations as Adjusted for Changes in Accounting Guidance (Unaudited) (1)(2)
Revenue Expenses Revenue $ 3,143 $ 3,090 2% 312-381-3310 Global Head of Communications (2) Fiduciary Investment Income for the three months ended March 31, 2019 and 2018 was $19 million and $10 million, respectively. Three Months Ended (2) Adjusted Other income (expense) excludes Pension settlement charges of $7 million for three months ended March 31, 2018.
Commercial Risk Solutions $ 1,118 $ 1,184 (6)% (5)% —% (7)% 6% Compensation and benefits $ 1,584 $ 1,616 $ (32) (2)% Expenses 2,271 2,291 (1) investor.relations@aon.com 312-381-2140 Three Months Ended Organic Revenue Growth From Continuing Operations (Unaudited) (3) Organic revenue growth includes the impact of intercompany activity and excludes the impact of changes in foreign exchange rates, fiduciary investment income, acquisitions, divestitures, transfers between revenue lines, and gains or losses on derivatives accounted for as hedges. (millions) Mar 31, 2019 Mar 31, 2018 %Change Three Months Ended (3) Adjusted items are generally taxed at the estimated annual effective tax rate, except for the applicable tax impact associated with estimated restructuring plan expenses, accelerated tradename amortization, and non-cash pension settlement charges, which are adjusted at the related jurisdictional rate. In addition, tax expense excludes the tax impacts of payment of certain legacy litigation and enactment date impacts of US Tax Reform. Pro Forma Periods Reported Periods
Reinsurance Solutions 788 742 6 (3) 9 Information technology 117 115 2 2 Operating income $ 872 $ 799 9% (millions, except per share data) Mar 31,  2019 Mar 31,  2018 % Change Cash Provided by Operating Activities $ 74 $ 140 (47)% (millions, except percentages) Mar 31, 2019 Mar 31, 2018 %Change (4) Adjusted income from discontinued operations, net of tax, excludes the gain on sale of discontinued operations of $8 million for the three months ended March 31, 2018. The effective tax rate was further adjusted for the applicable tax impact associated with the gain on sale, as applicable. Three Months Ended (5) Three Months Ended (6) Three Months Ended (7)
Retirement Solutions 420 424 (1) (4) 1 2 Premises 87 93 (6) (6) Operating margin 27.7% 25.9% Revenue Three Months Ended Capital Expenditures Used for Operations (57) (45) 27 Revenue from continuing operations $ 3,143 $ 3,090 2% (millions, except per share data) Mar 31, 2017 Jun 30, 2017 Sep 30, 2017 Dec 31, 2017 Full Year 2017 (6) Mar 31, 2018 Jun 30, 2018 Sep 30, 2018 Dec 31,2018 Full Year 2018 (7) Mar 31, 2019
Health Solutions 486 451 8 (5) 8 5 Depreciation of fixed assets 40 39 1 3 Operating income - as adjusted $ 1,060 $ 983 8% Total revenue $ 3,143 $ 3,090 2% (millions) Mar 31, 2019 Mar 31, 2018 % Change Less: Currency Impact (1) Less: FiduciaryInvestmentIncome (2) Less: Acquisitions, Divestitures & Other Organic Revenue Growth (3) Free Cash Flow Provided by Operations (1) $ 17 $ 95 (82)% Revenue
Data & Analytic Services 336 294 14 (4) 13 5 Amortization and impairment of intangible assets 97 110 (13) (12) Operating margin - as adjusted 33.7% 31.8% Expenses Revenue Operating income from continuing operations $ 872 $ 799 9% Commercial Risk Solutions $ 989 $ 1,041 $ 915 $ 1,218 $ 4,163 $ 1,184 $ 1,166 $ 1,029 $ 1,273 $ 4,652 $ 1,118
Elimination (5) (5) N/A N/A N/A N/A N/A Other general expenses 346 318 28 9 Compensation and benefits 1,584 1,616 (2)% Commercial Risk Solutions $ 1,118 $ 1,184 (6)% (5) —% (7)% 6% Amortization and impairment of intangible assets 97 110 Reinsurance Solutions 671 345 257 153 1,426 742 380 279 162 1,563 788
Total revenue $ 3,143 $ 3,090 2% (4)% —% —% 6% Total operating expenses $ 2,271 $ 2,291 $ (20) (1)% Information technology 117 115 2% Reinsurance Solutions 788 742 6 (3) 9 Restructuring 91 74 Retirement Solutions 385 388 492 489 1,754 424 431 501 509 1,865 420
Premises 87 93 (6)% Retirement Solutions 420 424 (1) (4) 1 2 Operating income from continuing operations - as adjusted $ 1,060 $ 983 8% Health Solutions 428 281 277 526 1,512 451 309 278 558 1,596 486
Depreciation of fixed assets 40 39 3% Health Solutions 486 451 8 (5) 8 5 Operating margin from continuing operations 27.7% 25.9% Data & Analytic Services 273 281 287 299 1,140 294 277 263 271 1,105 336
Amortization and impairment of intangible assets 97 110 (12)% Data & Analytic Services 336 294 14 (4) 13 5 Operating margin from continuing operations - as adjusted 33.7% 31.8% Elimination (4) (5) (1) (10) (5) (2) (1) (3) (11) (5)
Other general expenses 346 318 9% Elimination (5) (5) N/A N/A N/A N/A N/A Three Months Ended Total revenue $ 2,746 $ 2,332 $ 2,223 $ 2,684 $ 9,985 $ 3,090 $ 2,561 $ 2,349 $ 2,770 $10,770 $ 3,143
Total operating expenses 2,271 2,291 (1)% Total revenue $ 3,143 $ 3,090 2% (4) —% —% 6% (millions, except percentages) Mar 31, 2019 Mar 31, 2018 %Change Expenses
Operating income 872 799 9% Operating income from continuing operations - as adjusted $ 1,060 $ 983 8% Compensation and benefits 1,548 1,471 1,420 1,568 6,007 1,616 1,494 1,392 1,601 6,103 1,584
Interest income 2 4 (50)% Interest income 2 4 (50)% Information technology 88 98 109 124 419 115 123 125 121 484 117
Interest expense (72) (70) 3% Interest expense (72) (70) 3% Premises 84 86 89 89 348 93 96 94 87 370 87
Other income (expense) (15) (100)% Other income (expense): Depreciation of fixed assets 54 54 40 39 187 39 47 40 50 176 40
Income from continuing operations before income taxes 802 718 12% Other income (expense) - pensions - as adjusted (2) 4 9 (56)% Amortization of intangible assets 43 460 101 100 704 110 282 100 101 593 97
Income taxes (1) 126 114 11% Other income (expense) - other (4) (17) (76)% Other general expenses 307 330 307 328 1,272 318 535 336 311 1,500 346
Net income from continuing operations 676 604 12% Total Other income (expense) - as adjusted (2) (8) (100)% Total operating expenses 2,124 2,499 2,066 2,248 8,937 2,291 2,577 2,087 2,271 9,226 2,271
Net income from discontinued operations 6 (100)% Income before income taxes from continuing operations - as adjusted 990 909 9% Operating income 622 (167) 157 436 1,048 799 (16) 262 499 1,544 872
Net income 676 610 11% Income taxes expense (3) 167 150 11% Amortization of intangible assets 43 460 101 100 704 110 282 100 101 593 97
Less: Net income attributable to noncontrolling interests 17 16 6% Net income from continuing operations - as adjusted 823 759 8% Restructuring 144 155 102 96 497 74 195 97 119 485 91
Net income attributable to Aon shareholders $ 659 $ 594 11% Less: Net income attributable to noncontrolling interests 17 16 6% Legacy Litigation 103 (25) (3) 75
Net income attributable to Aon shareholders from continuing operations - as adjusted 806 743 8% Regulatory and compliance matters 34 8 (14) 28
Basic net income per share attributable to Aon shareholders Net income (loss) from discontinued operation - as adjusted (4) (2) (100)% Operating income - as adjusted 809 482 368 618 2,277 983 564 434 716 2,697 1,060
Continuing operations $ 2.72 $ 2.37 15% Income from discontinued operations, net of tax $ 806 $ 741 9% Operating margin from continuing operations - as adjusted 29.5% 20.7% 16.6% 23.0% 22.8% 31.8% 22.0% 18.5% 25.8% 25.0% 33.7%
Discontinued operations 0.02 (100)% Diluted net income (loss) per share attributable to Aon shareholders Interest income 2 8 10 7 27 4 1 5 2
Net income $ 2.72 $ 2.39 14% Continuing operations - as adjusted $ 3.31 $ 2.97 11% Interest expense (70) (71) (70) (71) (282) (70) (69) (69) (70) (278) (72)
Diluted net income per share attributable to Aon shareholders Discontinued operations - as adjusted (0.01) (100)% Other income (expense):
Continuing operations $ 2.70 $ 2.35 15% Net income - as adjusted $ 3.31 $ 2.96 12% Other income (expense) - pensions - as adjusted (3) 8 9 9 16 42 9 9 9 11 38 4
Discontinued operations 0.02 (100)% Weighted average ordinary shares outstanding - diluted 243.7 250.2 (3)% Other income (expense) - other - as adjusted (4) (10) (5) (5) (19) (39) (17) 4 1 (14) (26) (4)
Net income $ 2.70 $ 2.37 14% Effective Tax Rates Total Other income (expense) - as adjusted (3)(4) (2) 4 4 (3) 3 (8) 13 10 (3) 12
Weighted average ordinary shares outstanding - basic 242.2 248.5 (3)% Continuing Operations - U.S. GAAP 15.7% 15.9% Income before income taxes from continuing operations - as adjusted 739 423 312 551 2,025 909 509 375 643 2,436 990
Weighted average ordinary shares outstanding - diluted 243.7 250.2 (3) % Continuing Operations - Non-GAAP 16.9% 16.5% Income taxes 98 68 54 81 301 150 75 48 106 379 167
Discontinued Operations - U.S. GAAP —% 17.2% Income from continuing operations - as adjusted 641 355 258 470 1,724 759 434 327 537 2,057 823
Discontinued Operations - Non-GAAP (6) —% 46.5% Less: Net income attributable to noncontrolling interests 14 9 7 7 37 16 10 6 8 40 17
Net income attributable to Aon shareholders from continuing operations - as adjusted $ 627 $ 346 $ 251 $ 463 $ 1,687 $ 743 $ 424 $ 321 $ 529 $ 2,017 $ 806
Diluted earnings per share from continuing operations - as adjusted $ 2.35 $ 1.31 $ 0.98 $ 1.82 $ 6.47 $ 2.97 $ 1.71 $ 1.31 $ 2.16 $ 8.16 $ 3.31
Weighted average ordinary shares outstanding - diluted 267.0 264.3 257.3 254.5 260.7 250.2 247.4 245.6 245.0 247.0 243.7

Three Months Ended Three Months Ended Three Months Ended Investor Contact: Media Contact: Aon plc Aon plc Free Cash Flow from Operations (Unaudited) Aon plc Aon plc
(millions) Mar 31, 2019 Mar 31, 2018 % Change Less: Currency Impact Less: Fiduciary Investment Income Less: Acquisitions, Divestitures & Other Organic Revenue Growth (millions) Mar 31, 2019 Mar 31, 2018 $Change %Change (millions) Mar 31,  2019 Mar 31,  2018 % Change Investor Relations Ellen Barry Condensed Consolidated Statements of Income (Unaudited) (1) The effective tax rate was 15.7% and 15.9% for the three months ended March 31, 2019 and 2018, respectively. Reconciliation of Non-GAAP Measures - Organic Revenue Growth and Free Cash Flow (Unaudited) (1) Currency impact is determined by translating last year's revenue at this year's foreign exchange rates. (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) (1) Certain noteworthy items impacting operating income in 2019 and 2018 are described in this schedule. The items shown with the caption "as adjusted" are non-GAAP measures. Pro Forma Historical Reconciliation of Non-GAAP Measures - Operating Income and Diluted Earnings Per Share from Continuing Operations as Adjusted for Changes in Accounting Guidance (Unaudited) (1)(2) Notes
Revenue Expenses Revenue $ 3,143 $ 3,090 2% 312-381-3310 Global Head of Communications (2) Fiduciary Investment Income for the three months ended March 31, 2019 and 2018 was $19 million and $10 million, respectively. Three Months Ended (2) Adjusted Other income (expense) excludes Pension settlement charges of $7 million for three months ended March 31, 2018. (1) Certain noteworthy items impacting operating income in 2017, 2018, and 2019, are described in this schedule. The items shown with the caption "as adjusted" are non-GAAP measures.
Commercial Risk Solutions $ 1,118 $ 1,184 (6)% (5)% —% (7)% 6% Compensation and benefits $ 1,584 $ 1,616 $ (32) (2)% Expenses 2,271 2,291 (1) investor.relations@aon.com 312-381-2140 Three Months Ended Organic Revenue Growth From Continuing Operations (Unaudited) (3) Organic revenue growth includes the impact of intercompany activity and excludes the impact of changes in foreign exchange rates, fiduciary investment income, acquisitions, divestitures, transfers between revenue lines, and gains or losses on derivatives accounted for as hedges. (millions) Mar 31, 2019 Mar 31, 2018 %Change Three Months Ended (3) Adjusted items are generally taxed at the estimated annual effective tax rate, except for the applicable tax impact associated with estimated restructuring plan expenses, accelerated tradename amortization, and non-cash pension settlement charges, which are adjusted at the related jurisdictional rate. In addition, tax expense excludes the tax impacts of payment of certain legacy litigation and enactment date impacts of US Tax Reform. Pro Forma Periods Reported Periods (2) The historical period presented above have been adjusted retrospectively to reflect Aon's adoption of new revenue recognition standard in the first quarter of 2018. For a complete reconciliation of prior period reported balances to the pro forma adjusted balances above, please refer to our press release issued on February 2, 2018.
Reinsurance Solutions 788 742 6 (3) 9 Information technology 117 115 2 2 Operating income $ 872 $ 799 9% (millions, except per share data) Mar 31,  2019 Mar 31,  2018 % Change Cash Provided by Operating Activities $ 74 $ 140 (47)% (millions, except percentages) Mar 31, 2019 Mar 31, 2018 %Change (4) Adjusted income from discontinued operations, net of tax, excludes the gain on sale of discontinued operations of $8 million for the three months ended March 31, 2018. The effective tax rate was further adjusted for the applicable tax impact associated with the gain on sale, as applicable. Three Months Ended (5) Three Months Ended (6) Three Months Ended (7) (3) Adjusted Other income (expense) excludes pension settlement charges taken within each respective period. Pension settlement charges were $128 million for the three and twelve months ended December 31, 2017. Pension settlement charges were $7 million, $16 million, $9 million, and $5 million, respectively, for the three months ended March 31, 2018, June 30, 2018, September 30, 2018, and December 31, 2018, and $37 million for the twelve months ended December 31, 2018.
Retirement Solutions 420 424 (1) (4) 1 2 Premises 87 93 (6) (6) Operating margin 27.7% 25.9% Revenue Three Months Ended Capital Expenditures Used for Operations (57) (45) 27 Revenue from continuing operations $ 3,143 $ 3,090 2% (millions, except per share data) Mar 31, 2017 Jun 30, 2017 Sep 30, 2017 Dec 31, 2017 Full Year 2017 (6) Mar 31, 2018 Jun 30, 2018 Sep 30, 2018 Dec 31,2018 Full Year 2018 (7) Mar 31, 2019 (4) For illustrative purposes, the impact of the total foreign currency related to the new revenue accounting guidance is excluded from the Pro Forma financial statements. The impact on Other income (expense) of foreign currency due to this new guidance was $(2) million, $(4) million, $(6) million, and $1 million, respectively, for the three months ended March 31, 2017, June 30, 2017, September 30, 2017, and December 31, 2017, and $(11) million for the twelve months ended December 31, 2017.
Health Solutions 486 451 8 (5) 8 5 Depreciation of fixed assets 40 39 1 3 Operating income - as adjusted $ 1,060 $ 983 8% Total revenue $ 3,143 $ 3,090 2% (millions) Mar 31, 2019 Mar 31, 2018 % Change Less: Currency Impact (1) Less: FiduciaryInvestmentIncome (2) Less: Acquisitions, Divestitures & Other Organic Revenue Growth (3) Free Cash Flow Provided by Operations (1) $ 17 $ 95 (82)% Revenue (5) The non-GAAP effective tax rates reported were 11.1%, 15.6%, 17.5%, and 15.5%, respectively, for the three months ended March 31, 2017, June 30, 2017, September 30, 2017, and December 31, 2017, and 14.9% for the twelve months ended December 31, 2017. Adjusted items are generally taxed at the estimated annual effective tax rate, except for the applicable tax impact associated with estimated restructuring expenses, accelerated tradename amortization, impairment charges, regulatory and compliance provisions, and non-cash pension settlements, which are adjusted at the related jurisdictional rate. In addition, tax expense excludes the provisional estimates of the impact of U.S. Tax Reform recorded pursuant to SAB 118. The non-GAAP effective tax rates for continuing operations, adjusted for the change in accounting guidance were 13.3%, 16.1%, 17.3%, and 14.7% for the three months ended March 31, 2017, June 30, 2017, September 30, 2017, and December 31, 2017, and 14.9% for the twelve months ended December 31, 2017.
Data & Analytic Services 336 294 14 (4) 13 5 Amortization and impairment of intangible assets 97 110 (13) (12) Operating margin - as adjusted 33.7% 31.8% Expenses Revenue Operating income from continuing operations $ 872 $ 799 9% Commercial Risk Solutions $ 989 $ 1,041 $ 915 $ 1,218 $ 4,163 $ 1,184 $ 1,166 $ 1,029 $ 1,273 $ 4,652 $ 1,118 (6) The non-GAAP effective tax rates reported were 16.5%, 14.7%, 12.8%, and 16.5% respectively, for the three months ended March 31, 2018, June 30, 2018, September 30, 2018, and December 31, 2018 and 15.6% for the twelve months ended December 31, 2018. Adjusted items are generally taxed at the estimated annual effective tax rate, except for the applicable tax impact associated with estimated restructuring expenses, legacy litigation, accelerated tradename amortization, impairment charges, and non-cash pension settlement charges, which are adjusted at the related jurisdictional rate. In addition, tax expense excludes the tax impacts of the sale of certain assets and liabilities previously classified as held for sale, as well as the tax adjustments to finalize the 2017 accounting for the impact of US Tax Reform recorded pursuant to SAB 118.
Elimination (5) (5) N/A N/A N/A N/A N/A Other general expenses 346 318 28 9 Compensation and benefits 1,584 1,616 (2)% Commercial Risk Solutions $ 1,118 $ 1,184 (6)% (5) —% (7)% 6% Amortization and impairment of intangible assets 97 110 Reinsurance Solutions 671 345 257 153 1,426 742 380 279 162 1,563 788 (7) The non-GAAP effective tax rate reported was 16.9% for the three months ended March 31, 2019. Adjusted items are generally taxed at the estimated annual effective tax rate, except for the applicable tax impact associated with estimated restructuring expenses and accelerated tradename amortization, which are adjusted at the related jurisdictional rate.
Total revenue $ 3,143 $ 3,090 2% (4)% —% —% 6% Total operating expenses $ 2,271 $ 2,291 $ (20) (1)% Information technology 117 115 2% Reinsurance Solutions 788 742 6 (3) 9 Restructuring 91 74 Retirement Solutions 385 388 492 489 1,754 424 431 501 509 1,865 420
Premises 87 93 (6)% Retirement Solutions 420 424 (1) (4) 1 2 Operating income from continuing operations - as adjusted $ 1,060 $ 983 8% Health Solutions 428 281 277 526 1,512 451 309 278 558 1,596 486
Depreciation of fixed assets 40 39 3% Health Solutions 486 451 8 (5) 8 5 Operating margin from continuing operations 27.7% 25.9% Data & Analytic Services 273 281 287 299 1,140 294 277 263 271 1,105 336
Amortization and impairment of intangible assets 97 110 (12)% Data & Analytic Services 336 294 14 (4) 13 5 Operating margin from continuing operations - as adjusted 33.7% 31.8% Elimination (4) (5) (1) (10) (5) (2) (1) (3) (11) (5)
Other general expenses 346 318 9% Elimination (5) (5) N/A N/A N/A N/A N/A Three Months Ended Total revenue $ 2,746 $ 2,332 $ 2,223 $ 2,684 $ 9,985 $ 3,090 $ 2,561 $ 2,349 $ 2,770 $10,770 $ 3,143
Total operating expenses 2,271 2,291 (1)% Total revenue $ 3,143 $ 3,090 2% (4) —% —% 6% (millions, except percentages) Mar 31, 2019 Mar 31, 2018 %Change Expenses
Operating income 872 799 9% Operating income from continuing operations - as adjusted $ 1,060 $ 983 8% Compensation and benefits 1,548 1,471 1,420 1,568 6,007 1,616 1,494 1,392 1,601 6,103 1,584
Interest income 2 4 (50)% Interest income 2 4 (50)% Information technology 88 98 109 124 419 115 123 125 121 484 117
Interest expense (72) (70) 3% Interest expense (72) (70) 3% Premises 84 86 89 89 348 93 96 94 87 370 87
Other income (expense) (15) (100)% Other income (expense): Depreciation of fixed assets 54 54 40 39 187 39 47 40 50 176 40
Income from continuing operations before income taxes 802 718 12% Other income (expense) - pensions - as adjusted (2) 4 9 (56)% Amortization of intangible assets 43 460 101 100 704 110 282 100 101 593 97
Income taxes (1) 126 114 11% Other income (expense) - other (4) (17) (76)% Other general expenses 307 330 307 328 1,272 318 535 336 311 1,500 346
Net income from continuing operations 676 604 12% Total Other income (expense) - as adjusted (2) (8) (100)% Total operating expenses 2,124 2,499 2,066 2,248 8,937 2,291 2,577 2,087 2,271 9,226 2,271
Net income from discontinued operations 6 (100)% Income before income taxes from continuing operations - as adjusted 990 909 9% Operating income 622 (167) 157 436 1,048 799 (16) 262 499 1,544 872
Net income 676 610 11% Income taxes expense (3) 167 150 11% Amortization of intangible assets 43 460 101 100 704 110 282 100 101 593 97
Less: Net income attributable to noncontrolling interests 17 16 6% Net income from continuing operations - as adjusted 823 759 8% Restructuring 144 155 102 96 497 74 195 97 119 485 91
Net income attributable to Aon shareholders $ 659 $ 594 11% Less: Net income attributable to noncontrolling interests 17 16 6% Legacy Litigation 103 (25) (3) 75
Net income attributable to Aon shareholders from continuing operations - as adjusted 806 743 8% Regulatory and compliance matters 34 8 (14) 28
Basic net income per share attributable to Aon shareholders Net income (loss) from discontinued operation - as adjusted (4) (2) (100)% Operating income - as adjusted 809 482 368 618 2,277 983 564 434 716 2,697 1,060
Continuing operations $ 2.72 $ 2.37 15% Income from discontinued operations, net of tax $ 806 $ 741 9% Operating margin from continuing operations - as adjusted 29.5% 20.7% 16.6% 23.0% 22.8% 31.8% 22.0% 18.5% 25.8% 25.0% 33.7%
Discontinued operations 0.02 (100)% Diluted net income (loss) per share attributable to Aon shareholders Interest income 2 8 10 7 27 4 1 5 2
Net income $ 2.72 $ 2.39 14% Continuing operations - as adjusted $ 3.31 $ 2.97 11% Interest expense (70) (71) (70) (71) (282) (70) (69) (69) (70) (278) (72)
Diluted net income per share attributable to Aon shareholders Discontinued operations - as adjusted (0.01) (100)% Other income (expense):
Continuing operations $ 2.70 $ 2.35 15% Net income - as adjusted $ 3.31 $ 2.96 12% Other income (expense) - pensions - as adjusted (3) 8 9 9 16 42 9 9 9 11 38 4
Discontinued operations 0.02 (100)% Weighted average ordinary shares outstanding - diluted 243.7 250.2 (3)% Other income (expense) - other - as adjusted (4) (10) (5) (5) (19) (39) (17) 4 1 (14) (26) (4)
Net income $ 2.70 $ 2.37 14% Effective Tax Rates Total Other income (expense) - as adjusted (3)(4) (2) 4 4 (3) 3 (8) 13 10 (3) 12
Weighted average ordinary shares outstanding - basic 242.2 248.5 (3)% Continuing Operations - U.S. GAAP 15.7% 15.9% Income before income taxes from continuing operations - as adjusted 739 423 312 551 2,025 909 509 375 643 2,436 990
Weighted average ordinary shares outstanding - diluted 243.7 250.2 (3) % Continuing Operations - Non-GAAP 16.9% 16.5% Income taxes 98 68 54 81 301 150 75 48 106 379 167
Discontinued Operations - U.S. GAAP —% 17.2% Income from continuing operations - as adjusted 641 355 258 470 1,724 759 434 327 537 2,057 823
Discontinued Operations - Non-GAAP (6) —% 46.5% Less: Net income attributable to noncontrolling interests 14 9 7 7 37 16 10 6 8 40 17
Net income attributable to Aon shareholders from continuing operations - as adjusted $ 627 $ 346 $ 251 $ 463 $ 1,687 $ 743 $ 424 $ 321 $ 529 $ 2,017 $ 806
Diluted earnings per share from continuing operations - as adjusted $ 2.35 $ 1.31 $ 0.98 $ 1.82 $ 6.47 $ 2.97 $ 1.71 $ 1.31 $ 2.16 $ 8.16 $ 3.31
Weighted average ordinary shares outstanding - diluted 267.0 264.3 257.3 254.5 260.7 250.2 247.4 245.6 245.0 247.0 243.7

 

Three Months Ended Three Months Ended Three Months Ended Investor Contact: Media Contact: Aon plc Aon plc Free Cash Flow from Operations (Unaudited) Aon plc Aon plc Aon plc
(millions) Mar 31, 2019 Mar 31, 2018 % Change Less: Currency Impact Less: Fiduciary Investment Income Less: Acquisitions, Divestitures & Other Organic Revenue Growth (millions) Mar 31, 2019 Mar 31, 2018 $Change %Change (millions) Mar 31,  2019 Mar 31,  2018 % Change Investor Relations Ellen Barry Condensed Consolidated Statements of Income (Unaudited) (1) The effective tax rate was 15.7% and 15.9% for the three months ended March 31, 2019 and 2018, respectively. Reconciliation of Non-GAAP Measures - Organic Revenue Growth and Free Cash Flow (Unaudited) (1) Currency impact is determined by translating last year's revenue at this year's foreign exchange rates. (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) (1) Certain noteworthy items impacting operating income in 2019 and 2018 are described in this schedule. The items shown with the caption "as adjusted" are non-GAAP measures. Pro Forma Historical Reconciliation of Non-GAAP Measures - Operating Income and Diluted Earnings Per Share from Continuing Operations as Adjusted for Changes in Accounting Guidance (Unaudited) (1)(2) Notes Condensed Consolidated Statements of Financial Position (Unaudited)
Revenue Expenses Revenue $ 3,143 $ 3,090 2% 312-381-3310 Global Head of Communications (2) Fiduciary Investment Income for the three months ended March 31, 2019 and 2018 was $19 million and $10 million, respectively. Three Months Ended (2) Adjusted Other income (expense) excludes Pension settlement charges of $7 million for three months ended March 31, 2018. (1) Certain noteworthy items impacting operating income in 2017, 2018, and 2019, are described in this schedule. The items shown with the caption "as adjusted" are non-GAAP measures.
Commercial Risk Solutions $ 1,118 $ 1,184 (6)% (5)% —% (7)% 6% Compensation and benefits $ 1,584 $ 1,616 $ (32) (2)% Expenses 2,271 2,291 (1) investor.relations@aon.com 312-381-2140 Three Months Ended Organic Revenue Growth From Continuing Operations (Unaudited) (3) Organic revenue growth includes the impact of intercompany activity and excludes the impact of changes in foreign exchange rates, fiduciary investment income, acquisitions, divestitures, transfers between revenue lines, and gains or losses on derivatives accounted for as hedges. (millions) Mar 31, 2019 Mar 31, 2018 %Change Three Months Ended (3) Adjusted items are generally taxed at the estimated annual effective tax rate, except for the applicable tax impact associated with estimated restructuring plan expenses, accelerated tradename amortization, and non-cash pension settlement charges, which are adjusted at the related jurisdictional rate. In addition, tax expense excludes the tax impacts of payment of certain legacy litigation and enactment date impacts of US Tax Reform. Pro Forma Periods Reported Periods (2) The historical period presented above have been adjusted retrospectively to reflect Aon's adoption of new revenue recognition standard in the first quarter of 2018. For a complete reconciliation of prior period reported balances to the pro forma adjusted balances above, please refer to our press release issued on February 2, 2018. As of
Reinsurance Solutions 788 742 6 (3) 9 Information technology 117 115 2 2 Operating income $ 872 $ 799 9% (millions, except per share data) Mar 31,  2019 Mar 31,  2018 % Change Cash Provided by Operating Activities $ 74 $ 140 (47)% (millions, except percentages) Mar 31, 2019 Mar 31, 2018 %Change (4) Adjusted income from discontinued operations, net of tax, excludes the gain on sale of discontinued operations of $8 million for the three months ended March 31, 2018. The effective tax rate was further adjusted for the applicable tax impact associated with the gain on sale, as applicable. Three Months Ended (5) Three Months Ended (6) Three Months Ended (7) (3) Adjusted Other income (expense) excludes pension settlement charges taken within each respective period. Pension settlement charges were $128 million for the three and twelve months ended December 31, 2017. Pension settlement charges were $7 million, $16 million, $9 million, and $5 million, respectively, for the three months ended March 31, 2018, June 30, 2018, September 30, 2018, and December 31, 2018, and $37 million for the twelve months ended December 31, 2018. (millions) March 31,  2019 December 31, 2018
Retirement Solutions 420 424 (1) (4) 1 2 Premises 87 93 (6) (6) Operating margin 27.7% 25.9% Revenue Three Months Ended Capital Expenditures Used for Operations (57) (45) 27 Revenue from continuing operations $ 3,143 $ 3,090 2% (millions, except per share data) Mar 31, 2017 Jun 30, 2017 Sep 30, 2017 Dec 31, 2017 Full Year 2017 (6) Mar 31, 2018 Jun 30, 2018 Sep 30, 2018 Dec 31,2018 Full Year 2018 (7) Mar 31, 2019 (4) For illustrative purposes, the impact of the total foreign currency related to the new revenue accounting guidance is excluded from the Pro Forma financial statements. The impact on Other income (expense) of foreign currency due to this new guidance was $(2) million, $(4) million, $(6) million, and $1 million, respectively, for the three months ended March 31, 2017, June 30, 2017, September 30, 2017, and December 31, 2017, and $(11) million for the twelve months ended December 31, 2017. ASSETS
Health Solutions 486 451 8 (5) 8 5 Depreciation of fixed assets 40 39 1 3 Operating income - as adjusted $ 1,060 $ 983 8% Total revenue $ 3,143 $ 3,090 2% (millions) Mar 31, 2019 Mar 31, 2018 % Change Less: Currency Impact (1) Less: FiduciaryInvestmentIncome (2) Less: Acquisitions, Divestitures & Other Organic Revenue Growth (3) Free Cash Flow Provided by Operations (1) $ 17 $ 95 (82)% Revenue (5) The non-GAAP effective tax rates reported were 11.1%, 15.6%, 17.5%, and 15.5%, respectively, for the three months ended March 31, 2017, June 30, 2017, September 30, 2017, and December 31, 2017, and 14.9% for the twelve months ended December 31, 2017. Adjusted items are generally taxed at the estimated annual effective tax rate, except for the applicable tax impact associated with estimated restructuring expenses, accelerated tradename amortization, impairment charges, regulatory and compliance provisions, and non-cash pension settlements, which are adjusted at the related jurisdictional rate. In addition, tax expense excludes the provisional estimates of the impact of U.S. Tax Reform recorded pursuant to SAB 118. The non-GAAP effective tax rates for continuing operations, adjusted for the change in accounting guidance were 13.3%, 16.1%, 17.3%, and 14.7% for the three months ended March 31, 2017, June 30, 2017, September 30, 2017, and December 31, 2017, and 14.9% for the twelve months ended December 31, 2017. Current assets
Data & Analytic Services 336 294 14 (4) 13 5 Amortization and impairment of intangible assets 97 110 (13) (12) Operating margin - as adjusted 33.7% 31.8% Expenses Revenue Operating income from continuing operations $ 872 $ 799 9% Commercial Risk Solutions $ 989 $ 1,041 $ 915 $ 1,218 $ 4,163 $ 1,184 $ 1,166 $ 1,029 $ 1,273 $ 4,652 $ 1,118 (6) The non-GAAP effective tax rates reported were 16.5%, 14.7%, 12.8%, and 16.5% respectively, for the three months ended March 31, 2018, June 30, 2018, September 30, 2018, and December 31, 2018 and 15.6% for the twelve months ended December 31, 2018. Adjusted items are generally taxed at the estimated annual effective tax rate, except for the applicable tax impact associated with estimated restructuring expenses, legacy litigation, accelerated tradename amortization, impairment charges, and non-cash pension settlement charges, which are adjusted at the related jurisdictional rate. In addition, tax expense excludes the tax impacts of the sale of certain assets and liabilities previously classified as held for sale, as well as the tax adjustments to finalize the 2017 accounting for the impact of US Tax Reform recorded pursuant to SAB 118. Cash and cash equivalents $ 600 $ 656
Elimination (5) (5) N/A N/A N/A N/A N/A Other general expenses 346 318 28 9 Compensation and benefits 1,584 1,616 (2)% Commercial Risk Solutions $ 1,118 $ 1,184 (6)% (5) —% (7)% 6% Amortization and impairment of intangible assets 97 110 Reinsurance Solutions 671 345 257 153 1,426 742 380 279 162 1,563 788 (7) The non-GAAP effective tax rate reported was 16.9% for the three months ended March 31, 2019. Adjusted items are generally taxed at the estimated annual effective tax rate, except for the applicable tax impact associated with estimated restructuring expenses and accelerated tradename amortization, which are adjusted at the related jurisdictional rate. Short-term investments 134 172
Total revenue $ 3,143 $ 3,090 2% (4)% —% —% 6% Total operating expenses $ 2,271 $ 2,291 $ (20) (1)% Information technology 117 115 2% Reinsurance Solutions 788 742 6 (3) 9 Restructuring 91 74 Retirement Solutions 385 388 492 489 1,754 424 431 501 509 1,865 420 Receivables, net 3,242 2,760
Premises 87 93 (6)% Retirement Solutions 420 424 (1) (4) 1 2 Operating income from continuing operations - as adjusted $ 1,060 $ 983 8% Health Solutions 428 281 277 526 1,512 451 309 278 558 1,596 486 Fiduciary assets (1) 11,412 10,166
Depreciation of fixed assets 40 39 3% Health Solutions 486 451 8 (5) 8 5 Operating margin from continuing operations 27.7% 25.9% Data & Analytic Services 273 281 287 299 1,140 294 277 263 271 1,105 336 Other current assets 531 618
Amortization and impairment of intangible assets 97 110 (12)% Data & Analytic Services 336 294 14 (4) 13 5 Operating margin from continuing operations - as adjusted 33.7% 31.8% Elimination (4) (5) (1) (10) (5) (2) (1) (3) (11) (5) Total current assets 15,919 14,372
Other general expenses 346 318 9% Elimination (5) (5) N/A N/A N/A N/A N/A Three Months Ended Total revenue $ 2,746 $ 2,332 $ 2,223 $ 2,684 $ 9,985 $ 3,090 $ 2,561 $ 2,349 $ 2,770 $10,770 $ 3,143 Goodwill 8,219 8,171
Total operating expenses 2,271 2,291 (1)% Total revenue $ 3,143 $ 3,090 2% (4) —% —% 6% (millions, except percentages) Mar 31, 2019 Mar 31, 2018 %Change Expenses Intangible assets, net 1,077 1,149
Operating income 872 799 9% Operating income from continuing operations - as adjusted $ 1,060 $ 983 8% Compensation and benefits 1,548 1,471 1,420 1,568 6,007 1,616 1,494 1,392 1,601 6,103 1,584 Fixed assets, net 606 588
Interest income 2 4 (50)% Interest income 2 4 (50)% Information technology 88 98 109 124 419 115 123 125 121 484 117 Operating lease right-of-use assets 993
Interest expense (72) (70) 3% Interest expense (72) (70) 3% Premises 84 86 89 89 348 93 96 94 87 370 87 Deferred tax assets 588 561
Other income (expense) (15) (100)% Other income (expense): Depreciation of fixed assets 54 54 40 39 187 39 47 40 50 176 40 Prepaid pension 1,224 1,133
Income from continuing operations before income taxes 802 718 12% Other income (expense) - pensions - as adjusted (2) 4 9 (56)% Amortization of intangible assets 43 460 101 100 704 110 282 100 101 593 97 Other non-current assets 509 448
Income taxes (1) 126 114 11% Other income (expense) - other (4) (17) (76)% Other general expenses 307 330 307 328 1,272 318 535 336 311 1,500 346 Total assets $ 29,135 $ 26,422
Net income from continuing operations 676 604 12% Total Other income (expense) - as adjusted (2) (8) (100)% Total operating expenses 2,124 2,499 2,066 2,248 8,937 2,291 2,577 2,087 2,271 9,226 2,271
Net income from discontinued operations 6 (100)% Income before income taxes from continuing operations - as adjusted 990 909 9% Operating income 622 (167) 157 436 1,048 799 (16) 262 499 1,544 872 Liabilities and equity
Net income 676 610 11% Income taxes expense (3) 167 150 11% Amortization of intangible assets 43 460 101 100 704 110 282 100 101 593 97 Liabilities
Less: Net income attributable to noncontrolling interests 17 16 6% Net income from continuing operations - as adjusted 823 759 8% Restructuring 144 155 102 96 497 74 195 97 119 485 91 Current liabilities
Net income attributable to Aon shareholders $ 659 $ 594 11% Less: Net income attributable to noncontrolling interests 17 16 6% Legacy Litigation 103 (25) (3) 75 Accounts payable and accrued liabilities $ 1,479 $ 1,943
Net income attributable to Aon shareholders from continuing operations - as adjusted 806 743 8% Regulatory and compliance matters 34 8 (14) 28 Short-term debt and current portion of long-term debt 426 251
Basic net income per share attributable to Aon shareholders Net income (loss) from discontinued operation - as adjusted (4) (2) (100)% Operating income - as adjusted 809 482 368 618 2,277 983 564 434 716 2,697 1,060 Fiduciary liabilities 11,412 10,166
Continuing operations $ 2.72 $ 2.37 15% Income from discontinued operations, net of tax $ 806 $ 741 9% Operating margin from continuing operations - as adjusted 29.5% 20.7% 16.6% 23.0% 22.8% 31.8% 22.0% 18.5% 25.8% 25.0% 33.7% Other current liabilities 1,220 936
Discontinued operations 0.02 (100)% Diluted net income (loss) per share attributable to Aon shareholders Interest income 2 8 10 7 27 4 1 5 2 Total current liabilities 14,537 13,296
Net income $ 2.72 $ 2.39 14% Continuing operations - as adjusted $ 3.31 $ 2.97 11% Interest expense (70) (71) (70) (71) (282) (70) (69) (69) (70) (278) (72) Long-term debt 5,990 5,993
Diluted net income per share attributable to Aon shareholders Discontinued operations - as adjusted (0.01) (100)% Other income (expense): Non-current operating lease liabilities 978