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Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2015
Summary of Significant Accounting Policies [Abstract]  
Consolidation, Subsidiary, Effects of Changes
In consolidating the statutory financial statements of its insurance subsidiaries, the Company has therefore made necessary adjustments to conform their accounts with GAAP. The following table reflects a summary of all such adjustments:
 
Shareholders' Equity
 
Net Income (Loss)
 
December 31,
 
Years Ended December 31,
 
2015
 
2014
 
2015
 
2014
 
2013
Statutory totals of insurance
 
 
 
 
 
 
 
 
 
company subsidiaries (a):
 
 
 
 
 
 
 
 
 
General
$
3,345.4

 
$
3,288.4

 
$
245.1

 
$
304.5

 
$
314.4

Title
481.4

 
459.4

 
117.7

 
89.1

 
88.7

RFIG Run-off
53.2

 
64.3

 
89.9

 
127.4

 
125.2

Life & Accident
35.6

 
57.7

 
(.2
)
 
(.1
)
 
3.6

Sub-total
3,915.6

 
3,869.8

 
452.5

 
520.9

 
531.9

GAAP totals of non-insurance company
 
 
 
 
 
 
 
 
 
subsidiaries and consolidation adjustments
153.9

 
32.5

 
12.2

 
(66.4
)
 
23.2

Unadjusted totals
4,069.5

 
3,902.3

 
464.6

 
454.4

 
555.1

Adjustments to conform to GAAP statements:
 
 
 
 
 
 
 
 
 
Deferred policy acquisition costs
163.6

 
160.5

 
3.3

 
1.4

 
.9

Fair value of fixed maturity securities
95.5

 
298.5

 

 

 

Non-admitted assets
77.9

 
81.8

 

 

 

Deferred income taxes
(41.6
)
 
(111.9
)
 
(22.4
)
 
(39.3
)
 
(79.5
)
Mortgage contingency reserves
265.8

 
167.8

 

 

 

Title insurance premium reserves
468.2

 
441.5

 
26.6

 
8.9

 
42.1

Loss reserves
(504.3
)
 
(453.9
)
 
(50.3
)
 
(21.3
)
 
(71.8
)
Surplus notes
(732.5
)
 
(582.5
)
 

 

 

Sundry adjustments
18.1

 
19.7

 
.2

 
5.1

 
.9

Total adjustments
(189.0
)
 
21.5

 
(42.4
)
 
(44.9
)
 
(107.3
)
Consolidated GAAP totals
$
3,880.8

 
$
3,924.0

 
$
422.1

 
$
409.7

 
$
447.8



(a)
The insurance laws of the respective states in which the Companys insurance subsidiaries are incorporated prescribe minimum capital and surplus requirements for the lines of business they are licensed to write. For domestic property and casualty and life and accident insurance companies the National Association of Insurance Commissioners also prescribes risk-based capital ("RBC") requirements. The RBC is a measure of statutory capital in relationship to a formula-driven definition of risk relative to a companys balance sheet and mix of business. The combined RBC ratio of our primary General insurance subsidiaries was 636% and 692% of the company action level RBC at December 31, 2015 and 2014, respectively. The minimum capital requirements for the Companys Title Insurance subsidiaries are established by statute in the respective states of domicile. The minimum regulatory capital requirements are not significant in relationship to the recorded statutory capital of the Companys Title and Life & Accident insurance subsidiaries. At December 31, 2015 and 2014 each of the Companys General, Title, and Life and Accident insurance subsidiaries exceeded the minimum statutory capital and surplus requirements. Refer to Note 1(s) - Regulatory Matters for a discussion regarding the RFIG Run-off group.

Amortized Cost and Estimated Fair Values Of Fixed Maturities
The amortized cost and estimated fair values by type and contractual maturity of fixed maturity securities are shown in the following tables. Expected maturities will differ from contractual maturities since borrowers may have the right to call or repay obligations with or without call or prepayment penalties.
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
Fixed Maturity Securities by Type:
 
 
 
 
 
 
 
December 31, 2015:
 
 
 
 
 
 
 
Available for sale:
 
 
 
 
 
 
 
U.S. & Canadian Governments
$
1,269.5

 
$
18.9

 
$
3.6

 
$
1,284.9

Corporate
6,879.9

 
166.8

 
150.2

 
6,896.5

 
$
8,149.4

 
$
185.8

 
$
153.8

 
$
8,181.5

 
 
 
 
 
 
 
 
Held to maturity:
 
 
 
 
 
 
 
Tax-exempt
$
355.8

 
$
4.0

 
$
.1

 
$
359.7

 
 
 
 
 
 
 
 
December 31, 2014:
 
 
 
 
 
 
 
Available for sale:
 
 
 
 
 
 
 
U.S. & Canadian Governments
$
1,116.4

 
$
31.8

 
$
2.3

 
$
1,145.9

Tax-exempt
50.0

 
1.5

 
.2

 
51.4

Corporate
6,960.0

 
289.6

 
29.8

 
7,219.9

 
$
8,126.5

 
$
323.0

 
$
32.3

 
$
8,417.2

Amortized Cost and Estimated Fair Values Of Fixed Maturities By Contractual Maturities
 
Amortized
Cost
 
Estimated
Fair
Value
Fixed Maturity Securities Stratified by Contractual Maturity at December 31, 2015:
 
 
 
Available for sale:
 
 
 
Due in one year or less
$
841.2

 
$
847.3

Due after one year through five years
3,468.4

 
3,571.9

Due after five years through ten years
3,663.6

 
3,586.5

Due after ten years
176.1

 
175.6

 
$
8,149.4

 
$
8,181.5

Held to maturity:
 
 
 
Due in one year or less
$

 
$

Due after one year through five years

 

Due after five years through ten years
334.9

 
338.6

Due after ten years
20.8

 
21.1

 
$
355.8

 
$
359.7

 
 
 
 
Equity Securities Reflecting Reported Adjusted Cost, Net Of OTTI
A summary of the Company's equity securities follows:
Equity Securities:
Adjusted
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
December 31, 2015
$
1,826.4

 
$
266.7

 
$
105.3

 
$
1,987.8

December 31, 2014
$
1,726.5

 
$
309.1

 
$
23.9

 
$
2,011.7

Gross Unrealized Losses and Fair Value, Aggregated
The following table reflects the Company's gross unrealized losses and fair value, aggregated by category and the length of time that individual available for sale and held to maturity securities have been in an unrealized loss position. Fair value and issuer's cost comparisons follow:
 
12 Months or Less
 
Greater than 12 Months
 
Total
 
Fair
Value
 
Unrealized Losses
 
Fair
Value
 
Unrealized Losses
 
Fair
Value
 
Unrealized Losses
December 31, 2015:
 
 
 
 
 
 
 
 
 
 
 
Fixed Maturity Securities:
 
 
 
 
 
 
 
 
 
 
 
  U.S. & Canadian Governments
$
363.3

 
$
2.8

 
$
59.2

 
$
.7

 
$
422.6

 
$
3.6

  Tax-exempt
49.5

 
.1

 

 

 
49.5

 
.1

  Corporate
2,214.5

 
100.0

 
336.4

 
50.2

 
2,550.9

 
150.2

Subtotal
2,627.4

 
103.0

 
395.7

 
50.9

 
3,023.1

 
154.0

Equity Securities
502.1

 
87.3

 
31.3

 
17.9

 
533.4

 
105.3

Total
$
3,129.5

 
$
190.4

 
$
427.0

 
$
68.9

 
$
3,556.6

 
$
259.3

 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2014:
 
 
 
 
 
 
 
 
 
 
 
Fixed Maturity Securities:
 
 
 
 
 
 
 
 
 
 
 
  U.S. & Canadian Governments
$
47.7

 
$

 
$
144.9

 
$
2.2

 
$
192.6

 
$
2.3

  Tax-exempt
1.6

 

 
6.7

 
.1

 
8.4

 
.2

  Corporate
750.8

 
18.4

 
505.8

 
11.3

 
1,256.6

 
29.8

Subtotal
800.2

 
18.6

 
657.5

 
13.7

 
1,457.7

 
32.3

Equity Securities
384.1

 
23.9

 

 

 
384.1

 
23.9

Total
$
1,184.3

 
$
42.6

 
$
657.5

 
$
13.7

 
$
1,841.8

 
$
56.3

Fair Value, Assets Measured on Recurring Basis
The following tables show a summary of the fair value of financial assets segregated among the various input levels described above:
 
 
Fair Value Measurements
As of December 31, 2015:
 
Level 1
 
Level 2
 
Level 3
 
Total
Available for sale:
 
 
 
 
 
 
 
 
Fixed maturity securities:
 
 
 
 
 
 
 
 
U.S. & Canadian Governments
 
$
606.6

 
$
678.2

 
$

 
$
1,284.9

Corporate
 

 
6,886.0

 
10.5

 
6,896.5

Equity securities
 
1,985.8

 

 
2.0

 
1,987.8

Short-term investments
 
669.4

 

 

 
669.4

Held to maturity:
 
 
 
 
 
 
 
 
Fixed maturity securities:
 
 
 
 
 
 
 
 
Tax-exempt
 
$

 
$
359.7

 
$

 
$
359.7

 
 
 
 
 
 
 
 
 
As of December 31, 2014:
 
 
 
 
 
 
 
 
Available for sale:
 
 
 
 
 
 
 
 
Fixed maturity securities:
 
 
 
 
 
 
 
 
U.S. & Canadian Governments
 
$
472.0

 
$
673.8

 
$

 
$
1,145.9

Tax-exempt
 

 
51.4

 

 
51.4

Corporate
 

 
7,209.4

 
10.5

 
7,219.9

Equity securities
 
2,009.8

 

 
1.9

 
2,011.7

Short-term investments
 
$
605.8

 
$

 
$
3.6

 
$
609.4

Investment Income
The following table reflects the composition of net investment income, net realized gains or losses, and the net change in unrealized investment gains or losses for each of the years shown.
Years Ended December 31:
 
2015
 
2014
 
2013
Investment income from:
 
 
 
 
 
 
Fixed maturity securities
 
$
296.4

 
$
296.0

 
$
298.7

Equity securities
 
91.0

 
49.3

 
21.2

Short-term investments
 
.8

 
.8

 
1.1

Other sources
 
3.7

 
3.0

 
2.6

Gross investment income
 
392.1

 
349.2

 
323.7

Investment expenses (a)
 
3.4

 
3.7

 
4.9

Net investment income
 
$
388.6

 
$
345.5

 
$
318.7

 
 
 
 
 
 
 
Realized gains (losses) on:
 
 
 
 
 
 
Fixed maturity securities:
 
 
 
 
 
 
Gains
 
$
17.2

 
$
32.1

 
$
9.9

Losses
 
(.9
)
 
(5.0
)
 
(8.2
)
Net
 
16.3

 
27.0

 
1.7

Equity securities:
 
 
 
 
 
 
Gains
 
96.2

 
247.2

 
142.6

Losses
 
(20.9
)
 
(2.3
)
 

Net
 
75.3

 
244.9

 
142.5

Other long-term investments, net
 
(.3
)
 
.3

 
3.7

Total realized gains (losses)
 
91.3

 
272.3

 
148.1

Income taxes (credits)(b)
 
31.9

 
95.3

 
51.8

Net realized gains (losses)
 
$
59.3

 
$
177.0

 
$
96.2

 
 
 
 
 
 
 
Changes in unrealized investment gains (losses) on:
 
 
 
 
 
 
Fixed maturity securities
 
$
(256.1
)
 
$
55.1

 
$
(337.9
)
Less: Deferred income taxes (credits)
 
(89.5
)
 
19.2

 
(117.9
)
 
 
(166.6
)
 
35.9

 
(219.9
)
 
 
 
 
 
 
 
Equity securities & other long-term investments
 
(126.5
)
 
(86.8
)
 
82.6

Less: Deferred income taxes (credits)
 
(44.2
)
 
(30.3
)
 
28.9

 
 
(82.2
)
 
(56.4
)
 
53.7

Net changes in unrealized investment gains (losses)
 
$
(248.9
)
 
$
(20.4
)
 
$
(166.2
)
__________

(a)
Investment expenses consist of personnel costs and investment management and custody service fees, as well as interest incurred on funds held of $.3, $.4 and $1.7 for the years ended December 31, 2015, 2014 and 2013, respectively.
(b)
Reflects primarily the combination of fully taxable realized investment gains or losses and judgments about the recoverability of deferred tax assets.
Capitalization of Deferred Policy Acquisition Costs
The following table shows a reconciliation of deferred acquisition costs between succeeding balance sheet dates.
Years Ended December 31:
 
2015
 
2014
 
2013
Deferred, beginning of year
 
$
230.8

 
$
192.6

 
$
165.5

Acquisition costs deferred:
 
 
 
 
 
 
Commissions - net of reinsurance
 
267.3

 
258.9

 
222.7

Premium taxes
 
107.3

 
102.3

 
93.8

Salaries and other marketing expenses
 
46.0

 
41.4

 
42.5

Sub-total
 
420.7

 
402.7

 
359.1

Amortization charged to income
 
(396.1
)
 
(364.6
)
 
(331.9
)
Change for the year
 
24.6

 
38.1

 
27.1

Deferred, end of year
 
$
255.4

 
$
230.8

 
$
192.6

Unearned Premiums
At December 31, 2015 and 2014, unearned premiums consisted of the following:
As of December 31:
 
2015
 
2014
   General Insurance Group
 
$
1,735.0

 
$
1,606.5

   RFIG Run-off Business
 
13.7

 
21.1

       Total
 
$
1,748.7

 
$
1,627.7

Schedule of Effects of Coverage Rescissions and Claim Denials on Loss Reserves
The table below shows the estimated effects of coverage rescissions and claim denials on loss reserves and settled and incurred losses.
 
2015
 
2014
 
2013
Estimated reduction in beginning reserve
$
79.3

 
$
115.2

 
$
174.9

Total incurred claims and settlement expenses reduced
 
 
 
 
 
(increased) by changes in estimated rescissions:
 
 
 
 
 
Current year
18.8

 
47.1

 
80.5

Prior year
(17.6
)
 
10.4

 
71.9

Sub-total
1.2

 
57.6

 
152.5

Estimated rescission reduction in settled claims
(33.0
)
 
(93.5
)
 
(212.2
)
Estimated reduction in ending reserve
$
47.5

 
$
79.3

 
$
115.2

Schedule of Changes in Aggregate Reserves for the Company's Losses, Claims and Settlement Expenses
The following table shows an analysis of changes in aggregate reserves for the Company's losses, claims and settlement expenses for each of the years shown.
Years Ended December 31:
2015
 
2014
 
2013
Gross reserves at beginning of year
$
9,122.0

 
$
9,433.5

 
$
9,303.3

Less: reinsurance losses recoverable
3,006.6

 
2,836.7

 
2,847.0

Net reserves at beginning of year:
 
 
 
 
 
General Insurance
4,722.0

 
4,334.1

 
4,048.9

Title Insurance
505.4

 
471.5

 
396.4

RFIG Run-off
870.2

 
1,774.2

 
1,994.8

Other
17.5

 
16.8

 
15.9

Sub-total
6,115.3

 
6,596.8

 
6,456.2

Incurred claims and claim adjustment expenses:
 
 
 
 
 
Provisions for insured events of the current year:
 
 
 
 
 
General Insurance
2,081.6

 
2,009.8

 
1,857.9

Title Insurance
112.1

 
105.5

 
137.2

RFIG Run-off (a)
323.7

 
323.1

 
487.5

Other
25.2

 
44.5

 
41.0

Sub-total
2,542.8

 
2,483.0

 
2,523.7

Change in provision for insured events of prior years:
 
 
 
 
 
General Insurance
43.9

 
107.9

 
(23.7
)
Title Insurance
(12.8
)
 
(13.6
)
 
(3.1
)
RFIG Run-off (a)
(130.1
)
 
(74.8
)
 
(269.7
)
Other
(.6
)
 
(1.5
)
 
(2.5
)
Sub-total
(99.7
)
 
17.8

 
(299.1
)
Total incurred claims and claim adjustment expenses (a)
2,443.0

 
2,500.9

 
2,224.5

Payments:
 
 
 
 
 
Claims and claim adjustment expenses attributable to
 
 
 
 
 
   insured events of the current year:
 
 
 
 
 
General Insurance
671.5

 
657.0

 
620.8

Title Insurance
(39.9
)
 
4.7

 
6.0

RFIG Run-off (b)
29.1

 
40.6

 
39.4

Other
16.9

 
33.4

 
29.5

Sub-total
677.6

 
735.9

 
695.9

Claims and claim adjustment expenses attributable to
 
 
 
 
 
   insured events of prior years:
 
 
 
 
 
General Insurance
1,123.0

 
1,072.8

 
928.2

Title Insurance
63.8

 
53.2

 
52.8

RFIG Run-off (b)
297.9

 
1,111.6

 
398.9

Other
8.3

 
8.7

 
8.0

Sub-total
1,493.1

 
2,246.5

 
1,388.0

Total payments (b)
2,170.7

 
2,982.4

 
2,083.9

Amount of reserves for unpaid claims and claim adjustment expenses
 
 
 
 
 
at the end of each year, net of reinsurance losses recoverable: (c)
 
 
 
 
 
General Insurance
5,053.1

 
4,722.0

 
4,334.1

Title Insurance
580.8

 
505.4

 
471.5

RFIG Run-off
736.7

 
870.2

 
1,774.2

Other
16.9

 
17.5

 
16.8

Sub-total
6,387.6

 
6,115.3

 
6,596.8

Reinsurance losses recoverable
2,732.5

 
3,006.6

 
2,836.7

Gross reserves at end of year
$
9,120.1

 
$
9,122.0

 
$
9,433.5

__________

Excluding the reclassification of CCI from the General Insurance to the RFIG Run-off Business segment, certain elements shown in the preceding table would have been as follows:

 
 
2015
 
2014
 
2013
 
Change in provision for incurred events of prior years:
 
 
 
 
 
 
General Insurance
$
41.2

 
$
190.8

 
$
(40.4
)
 
RFIG Run-off (a)
(127.4
)
 
(157.8
)
 
(253.0
)
 
 
 
 
 
 
 
 
Payment of claim and claim adjustment expenses attributable to
 
 
 
 
 
 
incurred events of the current and prior years:
 
 
 
 
 
 
General Insurance
1,830.1

 
1,825.5

 
1,597.5

 
RFIG Run-off (b)
$
291.4

 
$
1,056.5

 
$
389.8


(a)
In common with all other insurance lines, RFIG Run-off mortgage guaranty settled and incurred claim and claim adjustment expenses include only those costs actually or expected to be paid by the Company. As previously noted, changes in mortgage guaranty aggregate case, IBNR, and loss adjustment expense reserves shown below and entering into the determination of incurred claim costs, take into account, among a large number of variables, claim cost reductions for anticipated coverage rescissions and claims denials.

The RFIG Run-off mortgage guaranty provision for insured events of the current year was reduced by estimated coverage rescissions and claims denials of $18.8, $47.1 and $80.5, respectively, for 2015, 2014 and 2013. The provision for insured events of prior years in 2015, 2014 and 2013 was (increased) reduced by estimated coverage rescissions and claims denials of $(17.6), $10.4 and $71.9, respectively. Prior year development was also affected in varying degrees by differences between actual claim settlements relative to expected experience and by subsequent revisions of assumptions in regards to claim frequency, severity or levels of associated claim settlement costs which result from consideration of underlying trends and expectations.

The following table reflects the changes in net reserves between succeeding balance sheet dates.
 
 
2015
 
2014
 
2013
 
Net reserve increase(decrease):
 
 
 
 
 
 
General Insurance
$
331.0

 
$
387.9

 
$
285.1

 
Title Insurance
75.3

 
33.8

 
75.1

 
RFIG Run-off
(133.4
)
 
(904.0
)
 
(220.6
)
 
Other
(.6
)
 
.7

 
.9

 
Total
$
272.2

 
$
(481.5
)
 
$
140.6



(b)
Rescissions reduced the Company's settled losses by an estimated $33.0, $93.5, and $212.2 for 2015, 2014, and 2013, respectively. 2013 RFIG Run-off Business claim and claim adjustment expense payments reflect the retention of the deferred payment obligation ("DPO") within claim reserves which amounted to $551.5 as of December 31, 2013. In mid July 2014, in furtherance of a Final Order received from the NCDOI, RMIC and RMICNC processed payments of their accumulated DPO balances of approximately $657.0. Refer to Note 1(s).

(c)
Year end net IBNR reserves for each segment were as follows:
 
 
2015
 
2014
 
2013
 
General Insurance
$
2,324.3

 
$
2,266.2

 
$
2,118.4

 
Title Insurance
503.8

 
432.2

 
407.1

 
RFIG Run-off
180.7

 
138.7

 
121.3

 
Other
6.4

 
5.7

 
4.0

 
Total
$
3,015.3

 
$
2,843.0

 
$
2,651.0



Schedule of Effective Income Tax Rate Reconciliation
The more significant differences, their effect on the statutory income tax rate (credit), and the resulting effective income tax rates (credits) are summarized below:
Years Ended December 31:
 
2015
 
2014
 
2013
Statutory tax rate (credit)
 
35.0
 %
 
35.0
 %
 
35.0
 %
Tax rate increases (decreases):
 
 
 
 
 
 
    Tax-exempt interest
 
(.1
)
 
(.2
)
 
(.4
)
     Dividends received exclusion
 
(3.0
)
 
(1.5
)
 
(.6
)
     Valuation allowance
 
1.1

 

 

     Foreign income (loss) reattribution
 
(.2
)
 
(.2
)
 
(.2
)
     Other items - net
 
.4

 
(.3
)
 
(.4
)
Effective tax rate (credit)
 
33.2
 %
 
32.8
 %
 
33.4
 %
Schedule of Deferred Tax Assets and Liabilities
The tax effects of temporary differences that give rise to significant portions of the Company's net deferred tax assets (liabilities) are as follows at the dates shown:
December 31:
 
2015
 
2014
 
2013
Deferred Tax Assets:
 
 
 
 
 
 
    Losses, claims, and settlement expenses
 
$
330.2

 
$
299.9

 
$
286.9

    Pension and deferred compensation plans
 
71.1

 
75.8

 
51.3

    Impairment losses on investments
 

 
3.2

 
3.2

    Net operating loss carryforward
 
36.8

 
40.2

 
43.7

    AMT credit carryforward
 
9.6

 
9.6

 
9.6

    Other temporary differences
 
35.5

 
38.4

 
50.5

        Total deferred tax assets before valuation allowance
 
483.3

 
467.2

 
445.3

    Valuation allowance
 

 
(9.6
)
 
(9.6
)
        Total deferred tax assets
 
483.3

 
457.6

 
435.7

Deferred Tax Liabilities:
 
 
 
 
 
 
    Unearned premium reserves
 
44.4

 
39.6

 
42.7

    Deferred policy acquisition costs
 
84.8

 
76.6

 
63.1

    Mortgage guaranty insurers' contingency reserves
 
82.4

 
53.5

 
20.1

Amortization of fixed maturity securities
 
5.6

 
5.1

 
4.9

    Net unrealized investment gains
 
74.9

 
208.7

 
220.5

    Title plants and records
 
4.9

 
5.0

 
4.9

    Other temporary differences
 
31.9

 
31.9

 
30.6

        Total deferred tax liabilities
 
328.9

 
420.6

 
387.1

        Net deferred tax assets (liabilities)
 
$
154.5

 
$
37.0

 
$
48.4

Schedule of Goodwill
The following table presents the components of the Company's goodwill balance:
 
General
 
Title
 
RFIG Run-off
 
Other
 
Total
January 1, 2014
$
116.2

 
$
44.3

 
$

 
$
.1

 
$
160.7

Acquisitions

 

 

 

 

Impairments

 

 

 

 

December 31, 2014
116.2

 
44.3

 

 
.1

 
160.7

Acquisitions

 

 

 

 

Impairments

 

 

 

 

December 31, 2015
$
116.2

 
$
44.3

 
$

 
$
.1

 
$
160.7

Schedule of Accumulated and Projected Benefit Obligations
The effects of these measurements and the resulting funded status of the Plan are reflected below.
Years Ended December 31:
 
2015
 
2014
 
2013
Projected Benefit Obligation
 
 
 
 
 
 
Projected benefit obligation at beginning of year
 
$
552.9

 
$
479.3

 
$
525.7

Increases (decreases) during the year attributable to:
 
 
 
 
 
 
Service cost
 

 

 
9.5

Interest cost
 
22.1

 
23.4

 
21.6

Plan curtailments
 

 

 
(26.6
)
Actuarial (gains) losses
 
(31.0
)
 
68.9

 
(32.8
)
Benefits paid
 
(20.2
)
 
(18.7
)
 
(18.1
)
Net increase (decrease) for the year
 
(29.1
)
 
73.5

 
(46.4
)
Projected benefit obligation at end of year
 
$
523.7

 
$
552.9

 
$
479.3

Accumulated benefit obligation at end of year
 
$
523.7

 
$
552.9

 
$
479.3

Schedule of Changes in Fair Value of Plan Assets
Fair Value of Net Assets Available for Plan Benefits
 
 
 
 
 
 
Fair value of net assets available for plan benefits
 
 
 
 
 
 
At beginning of the year
 
$
419.2

 
$
408.8

 
$
352.3

Increases (decreases) during the year attributable to:
 
 
 
 
 
 
Actual return on plan assets
 
4.7

 
19.8

 
61.9

Sponsor contributions
 
5.5

 
9.2

 
12.7

Benefits paid
 
(20.2
)
 
(18.7
)
 
(18.1
)
Net increase (decrease) for year
 
(9.9
)
 
10.3

 
56.5

Fair value of net assets available for plan benefits
 
 
 
 
 
 
At end of the year
 
$
409.2

 
$
419.2

 
$
408.8

Schedule of Net Funded Status [Table Text Block]
Funded Status
 
$
(114.5
)
 
$
(133.6
)
 
$
(70.4
)
Amounts recognized in accumulated other comprehensive income
 
$
(118.2
)
 
$
(126.9
)
 
$
(48.3
)
Schedule of Net Benefit Costs
The components of aggregate annual net periodic pension costs consisted of the following:
Years Ended December 31:
 
2015
 
2014
 
2013
Service cost
 
$

 
$

 
$
9.5

Interest cost
 
22.1

 
23.4

 
21.6

Curtailment loss recognized
 

 

 
.6

Expected return on plan assets
 
(29.8
)
 
(29.4
)
 
(26.7
)
Recognized loss
 
2.6

 

 
8.8

Prior service costs
 

 

 
.1

Net cost
 
$
(4.9
)
 
$
(6.0
)
 
$
14.1

Schedule of Assumptions Used
The projected benefit obligation and net periodic benefit cost for the Plan were determined using the following weighted-average assumptions:
 
 
Projected Benefit Obligation
 
Net Periodic Benefit Cost
As of December 31:
 
2015
 
2014
 
2015
 
2014
 
2013
Settlement discount rates
 
4.55
%
 
4.10
%
 
4.10
%
 
5.00
%
 
4.17
%
Rates of compensation increase
 
N/A

 
N/A

 
N/A

 
N/A

 
3.22
%
Long-term rates of return on plans' assets
 
N/A

 
N/A

 
7.25
%
 
7.25
%
 
7.56
%
Schedule of Weighted Average Asset Allocations Of Benefit Plans
The weighted-average asset allocations of the Plan were as follows:
 
 
 
 
Investment Policy Asset
Allocation % Range Target
As of December 31:
 
2015
 
2014
 
Equity securities:
 
 
 
 
 
 
Common shares of Company stock
 
12.9
%
 
9.9
%
 
 
Other
 
61.1

 
61.1

 
 
Sub-total
 
74.0

 
71.0

 
30% to 70%
Fixed maturity securities
 
21.4

 
25.4

 
30% to 70%
Other
 
4.6

 
3.6

 
   1% to 20%
Total
 
100.0
%
 
100.0
%
 
 
Schedule of Allocation of Plan Assets
The following tables present a summary of the Plan's assets segregated among the various input levels described in Note 1(d).
 
 
Fair Value Measurements
As of December 31, 2015:
 
Level 1
 
Level 2
 
Level 3
 
Total
Equity securities:
 
 
 
 
 
 
 
 
Common shares of Company stock
 
$
52.7

 
$

 
$

 
$
52.7

Other
 
231.9

 
18.2

 

 
250.2

Sub-total
 
284.6

 
18.2

 

 
302.9

Fixed maturity securities
 

 
87.5

 

 
87.5

Other
 
8.7

 
4.5

 
5.5

 
18.7

Total
 
$
293.3

 
$
110.2

 
$
5.5

 
$
409.2

 
 
 
 
 
 
 
 
 
As of December 31, 2014:
 
 
 
 
 
 
 
 
Equity securities:
 
 
 
 
 
 
 
 
Common shares of Company stock
 
$
41.3

 
$

 
$

 
$
41.3

Other
 
238.5

 
17.4

 

 
256.0

Sub-total
 
279.9

 
17.4

 

 
297.4

Fixed maturity securities
 

 
106.3

 

 
106.3

Other
 
6.2

 
3.1

 
6.0

 
15.4

Total
 
$
286.2

 
$
126.9

 
$
6.0

 
$
419.2

Schedule of Profit Sharing and Other Incentive Compensation Programs
The Company has a number of profit sharing and other incentive compensation programs for the benefit of a substantial number of its employees. The costs related to such programs are summarized below:
Years Ended December 31:
 
2015
 
2014
 
2013
Employees Savings and Stock Ownership Plan "ESSOP"
 
$
9.9

 
$
9.3

 
$
7.8

Other profit sharing plans
 
10.6

 
10.9

 
12.1

Cash and deferred incentive compensation
 
$
26.6

 
$
21.4

 
$
21.6

Schedule of Calculation of Numerator and Denominator in Earnings Per Share
The following table provides a reconciliation of net income (loss) and the number of shares used in basic and diluted earnings per share calculations.
Years Ended December 31:
 
2015
 
2014
 
2013
Numerator:
 
 
 
 
 
 
Net income (loss)
 
$
422.1

 
$
409.7

 
$
447.8

Numerator for basic earnings per share -
 
 
 
 
 
 
income (loss) available to common stockholders
 
422.1

 
409.7

 
447.8

Adjustment for interest expense incurred on
 
 
 
 
 
 
assumed conversion of convertible senior notes
 
14.6

 
14.6

 
14.6

Numerator for diluted earnings per share -
 
 
 
 
 
 
income (loss) available to common stockholders
 
 
 
 
 
 
after assumed conversion of convertible senior notes
 
$
436.7

 
$
424.3

 
$
462.4

 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
Denominator for basic earnings per share -
 
 
 
 
 
 
weighted-average shares (a)
 
259,502,067

 
258,553,662

 
257,443,999

Effect of dilutive securities - stock based compensation awards
 
988,091

 
1,004,518

 
784,080

Effect of dilutive securities - convertible senior notes
 
35,598,805

 
35,515,026

 
35,455,956

Denominator for diluted earnings per share -
 
 
 
 
 
 
adjusted weighted-average shares
 
 
 
 
 
 
and assumed conversion of convertible senior notes (a)
 
296,088,963
 
295,073,206

 
293,684,035

Earnings per share: Basic
 
$
1.63

 
$
1.58

 
$
1.74

Diluted
 
$
1.48

 
$
1.44

 
$
1.57

 
 
 
 
 
 
 
Anti-dilutive common stock equivalents
 
 
 
 
 
 
excluded from earning per share computations:
 
 
 
 
 
 
Stock based compensation awards
 
4,933,490

 
6,631,196

 
7,563,456

Convertible senior notes
 

 

 

Total
 
4,933,490

 
6,631,196

 
7,563,456

__________

(a) In calculating earnings per share, pertinent accounting rules require that common shares owned by the Company's Employee Savings and Stock Ownership Plan that are as yet unallocated to participants in the plan be excluded from the calculation. Such shares are issued and outstanding, and have the same voting and other rights applicable to all other common shares.
Schedule of Stock Based Compensation and Tax Benefit
The following table presents the stock based compensation expense and income tax benefit recognized in the financial statements:
Years Ended December 31:
 
2015
 
2014
 
2013
Stock based compensation expense
 
$
2.3

 
$
2.7

 
$
1.6

Income tax benefit
 
$
.8

 
$
.9

 
$
.5

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions
 
2015
 
2014
 
2013
Expected volatility
.28

 
.33

 
.33

Expected dividends
5.06
%
 
4.75
%
 
5.99
%
Expected term (in years)
7

 
7

 
7

Risk-free rate
1.70
%
 
2.10
%
 
1.19
%
Schedule of Share-based Compensation, Stock Options, Activity
A summary of stock option activity under the plan as of December 31, 2015, 2014 and 2013, and changes in outstanding options during the years then ended is presented below:
 
As of and for the Years Ended December 31,
 
2015
 
2014
 
2013
 
Shares
 
Weighted
Average
Exercise
Price
 
Shares
 
Weighted
Average
Exercise
Price
 
Shares
 
Weighted
Average
Exercise
Price
Outstanding at beginning of year
11,510,433

 
$
16.67

 
12,807,272

 
$
16.97

 
14,293,149

 
$
16.75

Granted
991,750

 
15.26

 
1,085,000

 
16.06

 
922,500

 
12.57

Exercised
920,350

 
12.14

 
409,229

 
11.85

 
897,909

 
12.22

Forfeited and expired
1,706,259

 
18.69

 
1,972,610

 
19.26

 
1,510,468

 
15.01

Outstanding at end of year
9,875,574

 
16.60

 
11,510,433

 
16.67

 
12,807,272

 
16.97

 
 
 
 
 
 
 
 
 
 
 
 
Exercisable at end of year
7,870,396

 
$
17.17

 
9,349,180

 
$
17.44

 
10,582,298

 
$
18.03

 
 
 
 
 
 
 
 
 
 
 
 
Weighted average fair value of
 
 
 
 
 
 
 
 
 
 
 
    options granted during the year (a)
$
2.25

 
per share
 
$
3.15

 
per share
 
$
1.94

 
per share
__________

(a) Based on the Black-Scholes option pricing model and the assumptions outlined above.
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding
A summary of stock options outstanding and exercisable at December 31, 2015 follows:
 
 
 
 
 
 
 
Options Outstanding
 
Options Exercisable
 
 
 
 
 
 
 
 
 
Weighted - Average
 
 
 
Weighted
Average
Exercise
Price
Ranges of Exercise Prices
 
Year(s)
Of
Grant
 
Number
Out-
Standing
 
Remaining
Contractual
Life
 
Exercise
Price
 
Number
Exercisable
 
$21.36
to
$22.35
 
2006
 
 
1,983,100

 
0.25
 
$
21.99

 
1,983,100

 
$
21.99

$21.78
to
$23.16
 
2007
 
 
1,877,000

 
1.25
 
21.77

 
1,877,000

 
21.77

$7.73
to
$12.95
 
2008
 
 
582,200

 
2.25
 
12.92

 
582,200

 
12.92

$10.48
 

 
2009
 
 
404,115

 
3.25
 
10.48

 
404,115

 
10.48

$12.08
 

 
2010
 
 
458,685

 
4.25
 
12.08

 
458,685

 
12.08

$12.33
 

 
2011
 
 
804,005

 
5.25
 
12.33

 
804,005

 
12.33

$10.80
 

 
2012
 
 
841,058

 
6.25
 
10.80

 
611,846

 
10.80

$12.57
 

 
2013
 
 
860,771

 
7.25
 
12.57

 
408,352

 
12.57

$16.06
 

 
2014
 
 
1,073,390

 
8.25
 
16.06

 
465,646

 
16.06

$15.26
 

 
2015
 
 
991,250

 
9.25
 
15.26

 
275,447

 
15.26

Total
 
 
 
 
 
 
9,875,574

 
 
 
$
16.60

 
7,870,396

 
$
17.17



Schedule of Cash Proceeds Received from Share-based Payment Awards
The cash received from stock option exercises, the total intrinsic value of stock options exercised, and the actual tax benefit realized for the tax deductions from option exercises are as follows:
 
2015
 
2014
 
2013
Cash received from stock option exercise
$
11.1

 
$
4.8

 
$
10.9

Intrinsic value of stock options exercised
4.2

 
1.7

 
2.9

Actual tax benefit realized for tax deductions
from stock options exercised
$
1.4

 
$
.6

 
$
1.1