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Supplemental Condensed Consolidating Financial Information Supplemental Condensed Consolidating Financial Information (Tables)
9 Months Ended
Sep. 30, 2013
Condensed Financial Statements, Captions [Line Items]  
Schedule of Condensed Income Statement [Table Text Block]
The following tables show condensed consolidating financial information for the Company as of September 30, 2013 and December 31, 2012 and for the periods ended September 30, 2013 and 2012, with a separate column for the Guarantor, the issuer and the other businesses of the Company combined ("Non-Guarantor subsidiaries").
 
 
Condensed Consolidating Statement of Operations
 
 
For the nine months ended September 30, 2013
 
 
KFSI
KAI
Other subsidiaries
Consolidation adjustments
Total
 
(a "Guarantor")
(an "Issuer")
(the "Non-Guarantor subsidiaries")
 
 
Revenue:
 
 
 
 
 
Net premiums earned
$

$

$
82,406

$

$
82,406

Service fee and commission income


37,332


37,332

Net investment income, net realized losses, other-than-temporary impairment loss and other income
(177
)
(2,558
)
8,799


6,064

Loss on change in fair value of debt

(2,179
)
(633
)

(2,812
)
Total revenues
(177
)
(4,737
)
127,904


122,990

Expenses:
 
 
 
 
 
Loss and loss adjustment expenses


67,789


67,789

Commissions and premium taxes


18,566


18,566

Other expenses
2,287

4,689

57,378


64,354

Interest expense

8,480

(2,912
)

5,568

Total expenses
2,287

13,169

140,821


156,277

Loss from continuing operations before loss on buy-back of debt, equity in net income (loss) of investee and income tax expense (benefit)
(2,464
)
(17,906
)
(12,917
)

(33,287
)
Loss on buy-back of debt

(24
)


(24
)
Equity in net income of investee

255



255

Loss from continuing operations before income tax expense (benefit)
(2,464
)
(17,675
)
(12,917
)

(33,056
)
Income tax expense (benefit)
(710
)

312


(398
)
Equity in undistributed net (loss) income of subsidiaries
(23,675
)
(13,017
)

36,692


Loss from continuing operations
(25,429
)
(30,692
)
(13,229
)
36,692

(32,658
)
Gain on liquidation of subsidiaries, net of taxes

7,227



7,227

Net (loss) income
$
(25,429
)
$
(23,465
)
$
(13,229
)
$
36,692

$
(25,431
)



 
 
Condensed Consolidating Statement of Operations
 
 
For the nine months ended September 30, 2012
 
 
KFSI
KAI
Other subsidiaries
Consolidation adjustments
Total
 
(a "Guarantor")
(an "Issuer")
(the "Non-Guarantor subsidiaries")
 
 
Revenue:
 
 
 
 
 
Net premiums earned
$

$

$
86,753

$

$
86,753

Service fee and commission income


25,315


25,315

Net investment income, net realized gains, other-than-temporary impairment loss and other income
937

2,289

5,812


9,038

Loss on change in fair value of debt

(2,284
)
(7,642
)

(9,926
)
Total revenues
937

5

110,238


111,180

Expenses:
 
 
 
 
 
Loss and loss adjustment expenses


78,739


78,739

Commissions and premium taxes


11,624


11,624

Other expenses
2,827

3,223

48,696


54,746

Interest expense

10,710

(5,058
)

5,652

Total expenses
2,827

13,933

134,001


150,761

Loss from continuing operations before gain on buy-back of debt, equity in net loss of investee and income tax expense (benefit)
(1,890
)
(13,928
)
(23,763
)

(39,581
)
Gain on buy-back of debt


500


500

Equity in net loss of investee

(2,067
)
(4
)

(2,071
)
Loss from continuing operations before income tax expense (benefit)
(1,890
)
(15,995
)
(23,267
)

(41,152
)
Income tax (benefit) expense
(1,211
)

332


(879
)
Equity in undistributed net (loss) income of subsidiaries
(33,888
)
(21,479
)

55,367


Net (loss) income
$
(34,567
)
$
(37,474
)
$
(23,599
)
$
55,367

$
(40,273
)
Schedule of Condensed Balance Sheet [Table Text Block]
 
 
Condensed Consolidating Balance Sheets
 
 
 
 
 
 As of September 30, 2013
 
 
KFSI
KAI
Other subsidiaries
Consolidation adjustments
Total
 
(a "Guarantor")
(an "Issuer")
(the "Non-Guarantor subsidiaries")
 
 
Assets:
 
 
 
 
 
Investments in subsidiaries
$
31,826

$
220,524

$

$
(252,350
)
$

Total investments

2,175

133,256

(47,361
)
88,070

Cash and cash equivalents
14,140

7,841

64,056


86,037

Goodwill


9,484


9,484

Intangible assets

7,803

42,258


50,061

Other assets
3,630

246,675

458,149

(604,031
)
104,423

Asset held for sale


7,291

 
7,291

Total assets
49,596

485,018

714,494

(903,742
)
345,366

Liabilities and Equity:
 
 
 
 
 
Liabilities:
 
 
 
 
 
Unpaid loss and loss adjustment expenses


92,868


92,868

Unearned premiums


47,846


47,846

LROC preferred units


14,286


14,286

Senior unsecured debentures

26,356



26,356

Subordinated debt

22,790



22,790

Notes payable

70,222

(70,222
)


Other liabilities
508

19,265

80,197

(7,838
)
92,132

Total liabilities
508

138,633

164,975

(7,838
)
296,278

 
 
 
 
 
 
Equity:
 
 
 
 
 
Common stock
308,734

829,681

482,397

(1,312,078
)
308,734

Additional paid-in capital
15,955




15,955

Accumulated deficit
(287,906
)
(456,576
)
57,601

398,975

(287,906
)
Accumulated other comprehensive income (loss)
11,222

(26,720
)
9,521

17,199

11,222

Shareholders' equity attributable to common shareholders
48,005

346,385

549,519

(895,904
)
48,005

Noncontrolling interests in consolidated subsidiaries
1,083




1,083

Total equity
49,088

346,385

549,519

(895,904
)
49,088

Total liabilities and equity
$
49,596

$
485,018

$
714,494

$
(903,742
)
$
345,366









 
 
Condensed Consolidating Balance Sheets
 
 
 
 
 
 As of December 31, 2012
 
 
KFSI
KAI
Other subsidiaries
Consolidation adjustments
Total
 
(a "Guarantor")
(an "Issuer")
(the "Non-Guarantor subsidiaries")
 
 
Assets:
 
 
 
 
 
Investments in subsidiaries
$
58,709

$
185,079

$

$
(243,788
)
$

Total investments


142,499

(54,499
)
88,000

Investment in investee

36,723


5,010

41,733

Cash and cash equivalents
1,932

6,371

72,510


80,813

Goodwill


8,421


8,421

Intangible assets

7,803

42,780


50,583

Other assets
5,004

229,206

452,199

(591,896
)
94,513

Asset held for sale


8,737


8,737

Total assets
65,645

465,182

727,146

(885,173
)
372,800

Liabilities and Equity:
 
 
 
 
 
Liabilities:
 
 
 
 
 
Unpaid loss and loss adjustment expenses


106,564


106,564

Unearned premiums


45,047


45,047

LROC preferred units


13,655


13,655

Senior unsecured debentures

23,730



23,730

Subordinated debt

23,774



23,774

Notes payable

70,222

(70,222
)


Other liabilities
231

16,374

92,145

(14,134
)
94,616

Total liabilities
231

134,100

187,189

(14,134
)
307,386

Equity:
 
 
 
 
 
Common stock
296,621

829,681

572,079

(1,401,760
)
296,621

Additional paid-in capital
15,757




15,757

Accumulated deficit
(262,069
)
(474,768
)
(35,045
)
509,813

(262,069
)
Accumulated other comprehensive income (loss)
14,762

(23,831
)
2,923

20,908

14,762

Shareholders' equity attributable to common shareholders
65,071

331,082

539,957

(871,039
)
65,071

Noncontrolling interests in consolidated subsidiaries
343




343

Total equity
65,414

331,082

539,957

(871,039
)
65,414

Total liabilities and equity
$
65,645

$
465,182

$
727,146

$
(885,173
)
$
372,800

Schedule of Condensed Cash Flow Statement [Table Text Block]
 
 
Condensed Consolidating Statement of Cash Flows
 
 
For the nine months ended September 30, 2013
 
 
KFSI
KAI
Other subsidiaries
Consolidation adjustments
Total
 
(a "Guarantor")
(an "Issuer")
(the "Non-Guarantor subsidiaries")
 
 
Cash provided by (used in):
 
 
 
 
 
Operating activities:
 
 
 
 
 
Net (loss) income
$
(25,429
)
$
(23,465
)
$
(13,229
)
$
36,692

$
(25,431
)
Gain on liquidation of subsidiaries, net of taxes

(7,227
)


(7,227
)
Equity in undistributed net income (loss) of subsidiaries
23,675

13,017


(36,692
)

Gain on change in fair value of debt

2,179

633


2,812

Other
1,849

4,029

(14,707
)

(8,829
)
Net cash provided by (used in) operating activities
95

(11,467
)
(27,303
)

(38,675
)
Investing activities:
 
 
 
 
 
Proceeds from sales and maturities of fixed maturities, equity investments and investment in investee

21,920

19,242


41,162

Purchase of investments

(2,744
)
(4,542
)

(7,286
)
Acquisition of business


(1,052
)

(1,052
)
Other

(5,656
)
5,201


(455
)
Net cash provided by investing activities

13,520

18,849


32,369

Financing activities:
 
 
 
 
 
Proceeds from issuance of common stock, net
12,113




12,113

Redemption of senior unsecured debentures

(583
)


(583
)
Net cash provided by (used in) financing activities
12,113

(583
)


11,530

Net increase (decrease) in cash and cash equivalents
12,208

1,470

(8,454
)

5,224

Cash and cash equivalents at beginning of period
1,932

6,371

72,510


80,813

Cash and cash equivalents at end of period
$
14,140

$
7,841

$
64,056

$

$
86,037













 
 
Condensed Consolidating Statement of Cash Flows
 
 
For the nine months ended September 30, 2012
 
 
KFSI
KAI
Other subsidiaries
Consolidation adjustments
Total
 
(a "Guarantor")
(an "Issuer")
(the "Non-Guarantor subsidiaries")
 
 
Cash provided by (used in):
 
 
 
 
 
Operating activities:
 
 
 
 
 
Net (loss) income
$
(34,567
)
$
(37,474
)
$
(23,599
)
$
55,367

$
(40,273
)
Equity in undistributed net income (loss) of subsidiaries
33,888

21,479


(55,367
)

Loss on change in fair value of debt

2,284

7,642


9,926

Other
(11,244
)
654

(19,937
)
20,184

(10,343
)
Net cash (used in) provided by operating activities
(11,923
)
(13,057
)
(35,894
)
20,184

(40,690
)
Investing activities:
 
 
 
 
 
Proceeds from sales and maturities of fixed maturities


67,037


67,037

Purchase of investments


(44,555
)

(44,555
)
Acquisitions of limited liability investments


(2,403
)

(2,403
)
Other

(6,994
)
6,932


(62
)
Net cash provided by (used in) investing activities

(6,994
)
27,011


20,017

Financing activities:
 
 
 
 
 
Proceeds from issuance of common stock, net
132

20,184


(20,184
)
132

Proceeds from issuance of notes payable


(2,418
)

(2,418
)
Redemption of senior unsecured debentures


(1,656
)

(1,656
)
Net cash provided by (used in) financing activities
132

20,184

(4,074
)
(20,184
)
(3,942
)
Net (decrease) increase in cash and cash equivalents
(11,791
)
133

(12,957
)

(24,615
)
Cash and cash equivalents at beginning of period
22,389

873

62,224


85,486

Cash and cash equivalents at end of period
$
10,598

$
1,006

$
49,267

$

$
60,871