EX-99.2
3
a08-10023_1ex99d2.htm
EX-99.2
Exhibit 99.2
Aon Corporation
Pro Forma Statement of Financial Position
Twelve Months Ended December 31, 2007
(Unaudited)
(millions)
Historical
Pro Forma
Adjustments
Pro Forma
Adjusted
ASSETS
CURRENT ASSETS
Cash
$
584
$
2,913
(2)
$
3,497
Short-term investments
4,331
-
4,331
Receivables
8,378
-
8,378
Other current assets
292
-
292
Assets held for sale
4,388
(4,388
)(1)
-
Total Current Assets
17,973
(1,475
)
16,498
Goodwill
4,935
-
4,935
Other intangible assets
204
-
204
Fixed assets, net
498
-
498
Long-term investments
417
-
417
Other non-current assets
921
-
921
TOTAL ASSETS
$
24,948
$
(1,475
)
$
23,473
LIABILITIES AND STOCKHOLDERS'
EQUITY
CURRENT LIABILITIES
Insurance premiums payable
$
9,498
$
-
$
9,498
Short-term debt
252
-
252
Accounts payable and accrued liabilities
1,418
78
(4)
1,496
Other current liabilities
360
499
(3)
859
Liabilities held for sale
3,025
(3,025
)(1)
-
Total Current Liabilities
14,553
(2,448
)
12,105
Long-term debt
1,893
-
1,893
Pension, post employment and post retirement liabilities
1,251
(13
)(4)
1,238
Other non-current liabilities
1,030
-
1,030
TOTAL LIABILITIES
18,727
(2,461
)
16,266
STOCKHOLDERS' EQUITY
6,221
986
(5)
7,207
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY
$
24,948
$
(1,475
)
$
23,473
Aon Corporation
Pro Forma Statement of Income
Twelve Months Ended December 31, 2007
(Unaudited)
(millions except per share data)
Historical
Pro Forma
Adjustments
Pro Forma
Adjusted
Revenue
Commissions and fees and other
$
7,170
$
-
$
7,170
Investment income
301
-
301
Total revenue
7,471
-
7,471
Expenses
Compensation and benefits
4,388
-
4,388
Other general expenses
1,726
-
1,726
Depreciation and amortization
194
-
194
Interest expense
138
-
138
Provision for New York and other state settlements
1
-
1
Total expenses
6,447
-
6,447
Income from continuing operations before
provision for income tax
1,024
-
1,024
Provision for income tax
352
-
352
Income from continuing operations
672
-
672
Discontinued operations
Income from discontinued operations
316
(323
)(6)
(7
)
Provision for income tax
124
(137
)(6)
(13
)
Income from discontinued operations
192
(186
)
6
Net income
$
864
$
(186
)
$
678
Basic net income per share
Continuing operations
$
2.25
$
2.25
Discontinued operations
0.65
0.03
Net income
$
2.90
$
2.28
Diluted net income per share
Continuing operations
$
2.10
$
2.10
Discontinued operations
0.59
0.01
Net income
$
2.69
$
2.11
Weighted average number of common shares:
Basic
297.5
297.5
Diluted
323.0
323.0
Aon Corporation
Notes to Pro Forma Financial Information
(1) -
Reflects book value of assets and liabilities of CICA, Sterling and Olympic.
(2) -
Reflects cash proceeds received at closing.
The proceeds are subject to post-closing adjustments as described in
Item 2.01 of this Current Report on Form 8-K.
(3) -
Reflects the estimated income tax effect of the transaction.
(4) -
Reflects the estimated transaction costs and benefits.
(5) -
Reflects estimated after-tax gain of the transaction.
(6) -
Reflects elimination of the results of operations of CICA, Sterling and
Olympic.

EX - 99 . 2 3 a08 - 10023 _ 1ex99d2 . htm EX - 99 . 2 Exhibit 99 . 2 Aon Corporation Pro Forma Statement of Financial Position Twelve Months Ended December 31 , 2007 ( Unaudited ) ( millions ) Historical Pro Forma Adjustments Pro Forma Adjusted ASSETS CURRENT ASSETS Cash $ 584 $ 2,913 ( 2 ) $ 3,497 Short - term investments 4,331 - 4,331 Receivables 8,378 - 8,378 Other current assets 292 - 292 Assets held for sale 4,388 ( 4,388 ) ( 1 ) - Total Current Assets 17,973 ( 1,475 ) 16,498 Goodwill 4,935 - 4,935 Other intangible assets 204 - 204 Fixed assets , net 498 - 498 Long - term investments 417 - 417 Other non - current assets 921 - 921 TOTAL ASSETS $ 24,948 $ ( 1,475 ) $ 23,473 LIABILITIES AND STOCKHOLDERS ' EQUITY CURRENT LIABILITIES Insurance premiums payable $ 9,498 $ - $ 9,498 Short - term debt 252 - 252 Accounts payable and accrued liabilities 1,418 78 ( 4 ) 1,496 Other current liabilities 360 499 ( 3 ) 859 Liabilities held for sale 3,025 ( 3,025 ) ( 1 ) - Total Current Liabilities 14,553 ( 2,448 ) 12,105 Long - term debt 1,893 - 1,893 Pension , post employment and post retirement liabilities 1,251 ( 13 ) ( 4 ) 1,238 Other non - current liabilities 1,030 - 1,030 TOTAL LIABILITIES 18,727 ( 2,461 ) 16,266 STOCKHOLDERS ' EQUITY 6,221 986 ( 5 ) 7,207 TOTAL LIABILITIES AND STOCKHOLDERS ' EQUITY $ 24,948 $ ( 1,475 ) $ 23,473 Aon Corporation Pro Forma Statement of Income Twelve Months Ended December 31 , 2007 ( Unaudited ) ( millions except per share data ) Historical Pro Forma Adjustments Pro Forma Adjusted Revenue Commissions and fees and other $ 7,170 $ - $ 7,170 Investment income 301 - 301 Total revenue 7,471 - 7,471 Expenses Compensation and benefits 4,388 - 4,388 Other general expenses 1,726 - 1,726 Depreciation and amortization 194 - 194 Interest expense 138 - 138 Provision for New York and other state settlements 1 - 1 Total expenses 6,447 - 6,447 Income from continuing operations before provision for income tax 1,024 - 1,024 Provision for income tax 352 - 352 Income from continuing operations 672 - 672 Discontinued operations Income from discontinued operations 316 ( 323 ) ( 6 ) ( 7 ) Provision for income tax 124 ( 137 ) ( 6 ) ( 13 ) Income from discontinued operations 192 ( 186 ) 6 Net income $ 864 $ ( 186 ) $ 678 Basic net income per share Continuing operations $ 2 . 25 $ 2 . 25 Discontinued operations 0 . 65 0 . 03 Net income $ 2 . 90 $ 2 . 28 Diluted net income per share Continuing operations $ 2 . 10 $ 2 . 10 Discontinued operations 0 . 59 0 . 01 Net income $ 2 . 69 $ 2 . 11 Weighted average number of common shares : Basic 297 . 5 297 . 5 Diluted 323 . 0 323 . 0 Aon Corporation Notes to Pro Forma Financial Information ( 1 ) - Reflects book value of assets and liabilities of CICA , Sterling and Olympic . ( 2 ) - Reflects cash proceeds received at closing . The proceeds are subject to post - closing adjustments as described in Item 2 . 01 of this Current Report on Form 8 - K . ( 3 ) - Reflects the estimated income tax effect of the transaction . ( 4 ) - Reflects the estimated transaction costs and benefits . ( 5 ) - Reflects estimated after - tax gain of the transaction . ( 6 ) - Reflects elimination of the results of operations of CICA , Sterling and Olympic .