Investor Presentaiton
Appendix B: Reconciliation of Non-GAAP Measures - Operating
Income and Diluted Earnings Per Share
Aon ple
Reconciliation of Non-GAAP Measures - Operating Income, Operating Margin, and Diluted Earnings Per Share (Unaudited) (¹)
(millions, except percentages)
Revenue
Operating income
Amortization and impairment of intangible assets
Legal settlements (2)
Operating income - as adjusted
Operating margin
Operating margin as adjusted
Three Months Ended
June 30,
Six Months Ended
June 30,
2023
$3,177
2022
$2,983
%
Change
2023
7% $7,048
%
2022
$6,653
Change
6%
$ 842
$ 700
20% $2,315
25
25
50
$2,067
53
12 %
-
58
58
$ 867
$ 783
11% $2,365
$2,178
9%
26.5 %
27.3 %
23.5%
26.2 %
32.8 %
31.1 %
33.6 %
32.7 %
Three Months Ended
June 30,
Six Months Ended
June 30,
(millions, except percentages)
2023
2022
%
Change
Operating income - as adjusted
$ 867
$ 783
2023
11% $2,365
2022
$2,178
%
Change
9 %
Interest income
5
5
-%
10
8
25%
Interest expense
(130)
(102)
27 %
(241)
(193)
25 %
Other income (expense):
Other income (expense) - pensions - as adjusted (3)
(16)
(3)
433 %
(33)
(6)
450 %
Other income (expense) - other
(16)
33
(148)%
(24)
61
(139)%
Total Other income (expense)
(32)
30
(207)%
(57)
55
(204)%
(4)
Income before income taxes - as adjusted
Income tax expense
Net income as adjusted
Less: Net income attributable to noncontrolling interests
710
716
(1)% 2,077
2,048
1 %
125
138
(9)% 393
400
(2)%
585
578
1 % 1,684
1,648
2 %
15
13
15%
44
38
16 %
Net income attributable to Aon shareholders - as adjusted
Diluted net income per share attributable to Aon shareholders - as
adjusted
$ 570
$ 565
1% $1,640
$1,610
2%
$ 2.76
$ 2.63
Weighted average ordinary shares outstanding - diluted
Effective Tax Rates (4)
206.3
214.7
5 % $ 7.93
(4)% 206.7
$ 7.47
6%
215.6
(4)%
U.S. GAAP
12.6 %
17.6 %
18.8 %
19.3 %
17.3 %
18.9 %
19.4 %
19.5 %
AON
Certain noteworthy items impacting operating income in the three months ended June 30, 2023 and 2022 are described in this schedule. The items shown with the caption "as adjusted"
are non-GAAP measures.
Non-GAAP
(1)
(2)
(3)
In connection with certain legal settlements reached, a $58 million charge was recognized in the second quarter of 2022.
To further its pension de-risking strategy, the Company settled certain pension obligations in the Netherlands through the purchase of annuities, where certain pension assets were
liquidated to purchase the annuities. A non-cash settlement charge totaling $27 million was recognized in the second quarter of 2023 which is excluded from Adjusted Other income
(expense) -as adjusted.
(4) Adjusted items are generally taxes at the estimated annual effective tax rate, except for the applicable tax impact associated with certain assets and liabilities classified as held for sale
and certain legal settlements, which are adjusted at the related jurisdictional rate.
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