XML 52 R36.htm IDEA: XBRL DOCUMENT v3.3.1.900
Shareholders' Equity (Tables)
 12 Months Ended
Dec. 31, 2015
Stockholders' Equity Note [Abstract]  
Summary of stock options activity
Data for stock options issued under AFG’s stock incentive plans is presented below:
 
Shares
 
Average
Exercise
Price
 
Average
Remaining
Contractual
Term
 
Aggregate
Intrinsic
Value
(in millions)
Outstanding at January 1, 2015
6,383,799

 
$
36.92

 
 
 
 
Granted
716,818

 
$
63.15

 
 
 
 
Exercised
(1,475,202
)
 
$
31.77

 
 
 
 
Forfeited/Cancelled
(109,325
)
 
$
49.34

 
 
 
 
Outstanding at December 31, 2015
5,516,090

 
$
41.46

 
5.9 years
 
$
169

 
 
 
 
 
 
 
 
Options exercisable at December 31, 2015
2,988,920

 
$
32.85

 
4.4 years
 
$
117
Assumptions used in estimating weighted average fair value of options on grant date
 
2015
 
2014
 
2013
Exercise price
$
63.15

 
$
56.47

 
$
44.01

Expected dividend yield
1.6
%
 
1.6
%
 
1.8
%
Expected volatility
25
%
 
26
%
 
39
%
Expected term (in years)
7.25

 
7.25

 
7.25

Risk-free rate
1.88
%
 
2.20
%
 
1.36
%
 
 
 
 
 
 
Grant date fair value
$
15.29

 
$
14.66

 
$
15.10
Summary of restricted stock awards activity
The restricted Common Stock that AFG has granted generally vests over a three or four year period. Data relating to grants of restricted stock is presented below:
 
Shares
 
Average
Grant Date
Fair Value
Outstanding at January 1, 2015
515,450

 
$
43.32

Granted
171,130

 
$
63.15

Vested
(163,312
)
 
$
38.36

Forfeited
(17,570
)
 
$
49.28

Outstanding at December 31, 2015
505,698

 
$
51.43
Components of accumulated other comprehensive income (loss)
The progression of the components of accumulated other comprehensive income follows (in millions):
 
 
 
Other Comprehensive Income
 
 
 
AOCI
Beginning
Balance
 
Pretax
 
Tax
 
Net
of
tax
 
Attributable to
noncontrolling
interests
 
Attributable to
shareholders
 
AOCI
Ending
Balance
Year ended December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
Net unrealized gains (losses) on securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrealized holding gains (losses) on securities arising during the period
 
 
$
(625
)
 
$
219

 
$
(406
)
 
$
9

 
$
(397
)
 
 
Reclassification adjustment for realized (gains) losses included in net earnings (a)
 
 
14

 
(5
)
 
9

 
(1
)
 
8

 
 
Reclassification for unrealized gains of subsidiaries sold
 
 
(34
)
 
12

 
(22
)
 
—

 
(22
)
 
 
Total net unrealized gains (losses) on securities (b)
$
743

 
(645
)
 
226

 
(419
)
 
8

 
(411
)
 
$
332

Net unrealized gains on cash flow hedges
—

 
1

 
—

 
1

 
—

 
1

 
1

Foreign currency translation adjustments
(8
)
 
(9
)
 
(5
)
 
(14
)
 
—

 
(14
)
 
(22
)
Pension and other postretirement plans adjustments
(8
)
 
1

 
—

 
1

 
—

 
1

 
(7
)
Total
$
727

 
$
(652
)
 
$
221

 
$
(431
)
 
$
8

 
$
(423
)
 
$
304

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year ended December 31, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
Net unrealized gains on securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrealized holding gains (losses) on securities arising during the period
 
 
$
334

 
$
(118
)
 
$
216

 
$
(4
)
 
$
212

 
 
Reclassification adjustment for realized (gains) losses included in net earnings (a)
 
 
(52
)
 
19

 
(33
)
 
1

 
(32
)
 
 
Total net unrealized gains on securities (b)
$
563

 
282

 
(99
)
 
183

 
(3
)
 
180

 
$
743

Foreign currency translation adjustments
1

 
(8
)
 
(1
)
 
(9
)
 
—

 
(9
)
 
(8
)
Pension and other postretirement plans adjustments
(4
)
 
(6
)
 
2

 
(4
)
 
—

 
(4
)
 
(8
)
Total
$
560

 
$
268

 
$
(98
)
 
$
170

 
$
(3
)
 
$
167

 
$
727

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year ended December 31, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
Net unrealized gains on securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrealized holding gains (losses) on securities arising during the period
 
 
$
(188
)
 
$
66

 
$
(122
)
 
$
4

 
$
(118
)
 
 
Reclassification adjustment for realized (gains) losses included in net earnings (a)
 
 
(222
)
 
78

 
(144
)
 
2

 
(142
)
 
 
Total net unrealized gains on securities (b)
$
823

 
(410
)
 
144

 
(266
)
 
6

 
(260
)
 
$
563

Foreign currency translation adjustments
14

 
(13
)
 
—

 
(13
)
 
—

 
(13
)
 
1

Pension and other postretirement plans adjustments
(6
)
 
3

 
(1
)
 
2

 
—

 
2

 
(4
)
Total
$
831

 
$
(420
)
 
$
143

 
$
(277
)
 
$
6

 
$
(271
)
 
$
560

 

(a)
The reclassification adjustment out of net unrealized gains on securities affected the following lines in AFG’s Statement of Earnings:
 
OCI component
 
Affected line in the Statement of Earnings
 
 
Pretax
 
Realized gains on securities
 
 
Tax
 
Provision for income taxes
 
 
Attributable to noncontrolling interests
 
Net earnings (loss) attributable to noncontrolling interests
 


(b)
Includes net unrealized gains of $51 million at December 31, 2015 compared to net unrealized gains of $58 million and $54 million at December 31, 2014 and 2013, related to securities for which only the credit portion of an other-than-temporary impairment has been recorded in earnings.