Investments (Tables)
|
12 Months Ended |
Dec. 31, 2011
|
Investments [Abstract] |
|
Schedule of Available-for-sale Securities |
The carrying amounts and fair values of our available for sale securities at December 31, 2011 and 2010 are as follows: | | | | | | | | | | | | | | | | | | | | | | December 31, 2011 | | Carrying Value | | Cost Basis | | Unrealized Gains | | Unrealized Losses | | Fair Value | | (In millions) | Fixed maturity investments (available for sale): | |
| | |
| | |
| | |
| | |
| U.S. government and agencies | $ | 159.1 |
| | $ | 148.2 |
| | $ | 10.9 |
| | $ | — |
| | $ | 159.1 |
| States and political subdivisions | 1,330.1 |
| | 1,266.1 |
| | 64.1 |
| | (0.1 | ) | | 1,330.1 |
| Corporate debt securities | 1,463.4 |
| | 1,442.7 |
| | 48.3 |
| | (27.6 | ) | | 1,463.4 |
| Foreign government bonds | 46.0 |
| | 44.2 |
| | 1.8 |
| | — |
| | 46.0 |
| Mortgage-backed/asset-backed securities | 201.6 |
| | 191.8 |
| | 9.8 |
| | — |
| | 201.6 |
| Preferred stock available for sale | 71.4 |
| | 74.8 |
| | 0.4 |
| | (3.8 | ) | | 71.4 |
| Equity securities available for sale | 105.7 |
| | 83.2 |
| | 25.5 |
| | (3.0 | ) | | 105.7 |
| | $ | 3,377.3 |
| | $ | 3,251.0 |
| | $ | 160.8 |
| | $ | (34.5 | ) | | $ | 3,377.3 |
|
| | | | | | | | | | | | | | | | | | | | | | December 31, 2010 | | Carrying Value | | Cost Basis | | Unrealized Gains | | Unrealized Losses | | Fair Value | | (In millions) | Fixed maturity investments (available for sale): | |
| | |
| | |
| | |
| | |
| U.S. government and agencies | $ | 313.5 |
| | $ | 303.8 |
| | $ | 11.8 |
| | $ | (2.1 | ) | | $ | 313.5 |
| States and political subdivisions | 1,374.0 |
| | 1,343.3 |
| | 37.9 |
| | (7.2 | ) | | 1,374.0 |
| Corporate debt securities | 1,532.7 |
| | 1,469.6 |
| | 69.4 |
| | (6.3 | ) | | 1,532.7 |
| Foreign government bonds and other fixed maturity securities | 90.1 |
| | 83.7 |
| | 6.8 |
| | (0.4 | ) | | 90.1 |
| Mortgage-backed/asset-backed securities | 184.0 |
| | 176.8 |
| | 7.2 |
| | — |
| | 184.0 |
| Equity securities available for sale | 75.2 |
| | 51.1 |
| | 24.4 |
| | (0.3 | ) | | 75.2 |
| | $ | 3,569.5 |
| | $ | 3,428.3 |
| | $ | 157.5 |
| | $ | (16.3 | ) | | $ | 3,569.5 |
|
|
Investments Classified by Contractual Maturity Date |
The following table presents certain information regarding contractual maturities of our fixed maturity securities at December 31, 2011:
| | | | | | | | | | | | | | | | December 31, 2011 | Maturity | Amortized Cost | | % of Total | | Fair Value | | % of Total | | (Dollars in millions) | One year or less | $ | 319.5 |
| | 10.3 | % | | $ | 324.4 |
| | 10.1 | % | After one year through five years | 1,422.3 |
| | 46.0 |
| | 1,468.3 |
| | 45.9 |
| After five years through ten years | 1,101.4 |
| | 35.6 |
| | 1,146.4 |
| | 35.8 |
| After ten years | 57.9 |
| | 1.9 |
| | 59.5 |
| | 1.9 |
| Mortgage-backed/asset-backed securities | 191.9 |
| | 6.2 |
| | 201.6 |
| | 6.3 |
| | $ | 3,093.0 |
| | 100.0 | % | | $ | 3,200.2 |
| | 100.0 | % | Subject to call | $ | 1,437.7 |
| | 46.5 | % | | $ | 1,477.8 |
| | 46.2 | % |
|
Schedule of Temporary Impairment Losses, Investments |
Net unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2011 and 2010 are as follows (in millions):
| | | | | | | | | | | | | | | | | | | | | | | | | 2011 | | | | | | | | | | | | | Less than 12 Months | | 12 Months or Longer | | Total | | Fair Value | | Unrealized Losses | | Fair Value | | Unrealized Losses | | Fair Value | | Unrealized Losses | States and political subdivisions | $ | 10.6 |
| | $ | (0.1 | ) | | $ | — |
| | $ | — |
| | $ | 10.6 |
| | $ | (0.1 | ) | Corporate debt securities | 339.0 |
| | (26.6 | ) | | 7.3 |
| | (1.0 | ) | | 346.3 |
| | (27.6 | ) | Preferred stock available for sale | 52.9 |
| | (3.8 | ) | | — |
| | — |
| | 52.9 |
| | (3.8 | ) | Equity securities available for sale | 16.1 |
| | (3.0 | ) | | — |
| | — |
| | 16.1 |
| | (3.0 | ) | Total temporarily impaired securities | $ | 418.6 |
| | $ | (33.5 | ) | | $ | 7.3 |
| | $ | (1.0 | ) | | $ | 425.9 |
| | $ | (34.5 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | 2010 | | | | | | | | | | | | | Less than 12 Months | | 12 Months or Longer | | Total | | Fair Value | | Unrealized Losses | | Fair Value | | Unrealized Losses | | Fair Value | | Unrealized Losses | U.S. government and agencies | $ | 54.3 |
| | $ | (2.0 | ) | | $ | 0.4 |
| | $ | (0.1 | ) | | $ | 54.7 |
| | $ | (2.1 | ) | States and political subdivisions | 255.2 |
| | (7.2 | ) | | — |
| | — |
| | 255.2 |
| | (7.2 | ) | Corporate debt securities | 251.4 |
| | (6.3 | ) | | — |
| | — |
| | 251.4 |
| | (6.3 | ) | Foreign government bonds and other fixed maturity securities | 10.8 |
| | (0.4 | ) | | — |
| | — |
| | 10.8 |
| | (0.4 | ) | Equity securities available for sale | — |
| | — |
| | 1.8 |
| | (0.3 | ) | | 1.8 |
| | (0.3 | ) | Total temporarily impaired securities | $ | 571.7 |
| | $ | (15.9 | ) | | $ | 2.2 |
| | $ | (0.4 | ) | | $ | 573.9 |
| | $ | (16.3 | ) |
|
Realized Gains and Losses and Proceeds From Sales on Investments and Other Assets |
The following table presents realized gains and losses on investments and other assets and proceeds from the sale or maturity of investments and other assets for the years ending December 31, 2011, 2010, and 2009, respectively: | | | | | | | | | | | | | | | | | | | | Year ended December 31, 2011 | | | Gross Realized Gains | | Gross Realized Losses | | Net Realized Gains (Losses) | | Gross Proceeds from Sale/Maturity | | | (In millions) | Fixed maturity securities available for sale | | $ | 37.5 |
| | $ | (17.8 | ) | | $ | 19.7 |
| | $ | 1,205.6 |
| Preferred stock available for sale | | 0.1 |
| | (0.1 | ) | | — |
| | 21.0 |
| Equity securities available for sale | | 1.9 |
| | — |
| | 1.9 |
| | 16.3 |
| Other long-term investments | | | | | | (4.4 | ) | | 77.7 |
| Other assets | | | | | | (10.5 | ) | | 5.4 |
| Total | | | | | | $ | 6.7 |
| | $ | 1,326.0 |
| | | | | | | | | | | | Year ended December 31, 2010 | | | Gross Realized Gains | | Gross Realized Losses | | Net Realized Gains (Losses) | | Gross Proceeds from Sale/Maturity | | | (In millions) | Fixed maturity securities available for sale | | $ | 90.3 |
| | $ | (1.7 | ) | | $ | 88.6 |
| | $ | 1,348.8 |
| Equity securities available for sale | | 26.3 |
| | — |
| | 26.3 |
| | 59.9 |
| Other long-term investments | | | | | | 109.8 |
| | 193.6 |
| Other assets | | | | | | 11.0 |
| | 20.1 |
| Total | | | | | | $ | 235.7 |
| | $ | 1,622.4 |
| | | | | | | | | | | | Year ended December 31, 2009 | | | Gross Realized Gains | | Gross Realized Losses | | Net Realized Gains (Losses) | | Gross Proceeds from Sale/Maturity | | | (In millions) | Fixed maturity securities available for sale | | $ | 36.3 |
| | $ | (2.6 | ) | | $ | 33.7 |
| | $ | 1,130.1 |
| Equity securities available for sale | | 5.3 |
| | (21.5 | ) | | (16.2 | ) | | 60.0 |
| Other long-term investments | | | | | | 3.7 |
| | — |
| Other assets | | | | | | 4.6 |
| | 53.8 |
| Total | | | | | | $ | 25.8 |
| | $ | 1,243.9 |
|
|
Investment Income |
Interest and investment income consists of the following: | | | | | | | | | | | | | | Year Ended December 31, | | 2011 | | 2010 | | 2009 | | (In millions) | Cash and cash equivalents | $ | 0.4 |
| | $ | 0.4 |
| | $ | 0.4 |
| Fixed maturity securities available for sale | 129.5 |
| | 128.0 |
| | 133.4 |
| Equity securities and preferred stock available for sale | 6.2 |
| | 1.8 |
| | 0.6 |
| Short-term investments | 0.1 |
| | 0.6 |
| | 3.1 |
| Other | 6.5 |
| | 4.2 |
| | 6.4 |
| Total | $ | 142.7 |
| | $ | 135.0 |
| | $ | 143.9 |
|
|
Schedule of Equity Method Investments |
Investments in unconsolidated affiliates are recorded using the equity method of accounting and, as of December 31, 2011 and 2010, consisted of the following (in millions): | | | | | | | | | | | | | Ownership at December 31, 2011 | | 2011 | | 2010 | Ceridian | 33 | % | | $ | 352.8 |
| | $ | 367.2 |
| Remy | 47 | % | | 141.8 |
| | 108.7 |
| Other | various |
| | 51.9 |
| | 51.8 |
| Total | |
| | $ | 546.5 |
| | $ | 527.7 |
|
|
Ceridian summarized financial information balance sheet |
Summarized financial information for the periods included in our Consolidated Financial Statements for Ceridian is presented below. | | | | | | | | | | September 30, 2011 | | September 30, 2010 | | (In millions) | | (In millions) | Total current assets | $ | 1,154.0 |
| | $ | 1,080.3 |
| Goodwill and other intangible assets, net | 4,577.6 |
| | 4,700.6 |
| Other assets | 4,259.6 |
| | 4,859.2 |
| Total assets | $ | 9,991.2 |
| | $ | 10,640.1 |
| Current liabilities | $ | 892.0 |
| | $ | 799.5 |
| Long-term obligations, less current portion | 3,451.4 |
| | 3,492.5 |
| Other long-term liabilities | 4,566.0 |
| | 5,222.2 |
| Total liabilities | 8,909.4 |
| | 9,514.2 |
| Equity | 1,081.8 |
| | 1,125.9 |
| Total liabilities and equity | $ | 9,991.2 |
| | $ | 10,640.1 |
|
|
Ceridian summarized financial information income statement |
| | | | | | | | | | Period from October 1, 2010, through September 30, 2011 | | Period from October 1, 2009, through September 30, 2010 | | (In millions) | | (In millions) | Total revenues | $ | 1,539.4 |
| | $ | 1,472.4 |
| Loss before income taxes | (73.7 | ) | | (129.4 | ) | Net loss | (43.8 | ) | | (101.0 | ) |
|