-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, G52AyslGKOeGm0pSmnCf3802mwDQx/hEbM2VkI5401jgG5bmNS5m041693dPsmfh +CTv+CC8Wf0rmbw79uJBow== 0001010521-03-000134.txt : 20030502 0001010521-03-000134.hdr.sgml : 20030502 20030501190610 ACCESSION NUMBER: 0001010521-03-000134 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20030501 ITEM INFORMATION: Other events FILED AS OF DATE: 20030502 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HANCOCK JOHN LIFE INSURANCE CO CENTRAL INDEX KEY: 0000917406 STANDARD INDUSTRIAL CLASSIFICATION: LIFE INSURANCE [6311] IRS NUMBER: 041414660 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-31445 FILM NUMBER: 03677946 BUSINESS ADDRESS: STREET 1: CORPORATE LAW DIVISION T-55 STREET 2: P O BOX 111 CITY: BOSTON STATE: MA ZIP: 02117 BUSINESS PHONE: 6175726000 MAIL ADDRESS: STREET 1: CORPORATE LAW DIVISION T-55 STREET 2: P O BOX 111 CITY: BOSTON STATE: MA ZIP: 02117 FORMER COMPANY: FORMER CONFORMED NAME: HANCOCK JOHN MUTUAL LIFE INSURANCE CO / MA DATE OF NAME CHANGE: 19940111 8-K 1 jhlico.txt JOHN HANCOCK LIFE INSURANCE COMPANY SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report: May 1, 2003 (Date of Earliest Event Reported) JOHN HANCOCK LIFE INSURANCE COMPANY (Exact name of registrant as specified in charter) Commission File Number: 333-45862 MASSACHUSETTS 04-1414660 (State or other jurisdiction of (I.R.S. Employer Identification No.) incorporation or organization) John Hancock Place Boston, Massachusetts 02117 (Address of principal executive offices) (617) 572-6000 (Registrant's telephone number, including area code) ITEM 5. OTHER EVENTS AND REGULATION FD DISCLOSURE On May 1, 2003, John Hancock Financial Services, Inc., a Delaware corporation, issued a press release, a copy of which is attached hereto as Exhibit 99 and is incorporated herein by reference. John Hancock Life Insurance Company, is a direct, wholly-owned subsidiary of John Hancock Financial Services, Inc. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS (c) Exhibits Exhibit No. Item ----------- ---- 99 Press Release of John Hancock Financial Services, Inc., dated May 1, 2003. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized. JOHN HANCOCK LIFE INSURANCE COMPANY Date: May 1, 2003 By: /s/ Thomas E. Moloney ----------------------------------- Thomas E. Moloney Senior Executive Vice President and Chief Financial Officer Exhibit 99
[LOGO] John Hancock FINANCIAL SERVICES News John Hancock Financial Services Reports Financial Results for First Quarter 2003 o Net income: $0.88 per share diluted vs. $0.49 per share diluted in the year-ago quarter o Consolidated net operating income*: $0.74 per share diluted vs. $0.68 per share diluted in the year-ago quarter --------------------------------------------------------------------------------------------------- Earnings summary (Table 1) 1st Quarter 2003 1st Quarter 2002 % Change --------------------------------------------------------------------------------------------------- Net income $253.2 million $146.5 million 72.8% Net income per share diluted $0.88 $0.49 79.6% Consolidated net operating income* $214.1 million $202.8 million 5.6% Consolidated net operating income* per share diluted $0.74 $0.68 8.8% Weighted-average shares outstanding diluted 288.30 million 300.00 million (3.9%) --------------------------------------------------------------------------------------------------- BOSTON (May 1, 2003) - John Hancock Financial Services, Inc. (NYSE: JHF) today reported net income of $253.2 million for the first quarter of 2003, or $0.88 per share diluted, compared with $146.5 million, or $0.49 per share diluted, in the first quarter of 2002. Net income for the quarter included net realized investment and other gains of $39.1 million after-tax, including a pre-tax gain of $233.8 million from the previously announced sale of the company's home office real estate. Net income in the year-ago quarter included net realized investment and other losses of $52.7 million after-tax. Gross realized losses on impairments and disposal of investments -- including bonds, equities, mortgages and other invested assets -- in the 2003 quarter were $293.4 million, excluding hedging adjustments. These were more than offset by the gain on the sale of the home office buildings and gains of $102.4 million on the disposal of other securities. This compares with gross losses of $310.9 million from impairments and disposals and gains of $196.0 million on disposals in the fourth quarter of 2002. - ------------------------------- * JHF management uses net operating income to evaluate financial performance of its business segments and as a basis for management incentives. The company believes the combined presentation and evaluation of operating income along with net income under generally accepted accounting principles (GAAP) provides information that may enhance investors' understanding of the company's underlying profitability from operations. Net operating income differs from GAAP net income because it excludes net realized investment and other gains and losses and certain other items that management believes are not indicative of ongoing operating trends. Net operating income is a measure commonly used in the life insurance industry and by security analysts in the evaluation of company performance. See Table 2 for a reconciliation of net operating income to GAAP net income. 1 Pre-tax impairments in the first quarter included $54.2 million related to power investments, $40.6 million related to agricultural investments, $36.2 million related to airline equipment trust certificates and $11.6 million related to oil & gas investments. The company's gross unrealized losses (excluding hedging adjustments) were about $900 million as of quarter-end, compared with $1.2 billion at December 31, 2002. The unrealized loss related to bonds trading at less than 80% of amortized costs for six months or longer was about $300 million in the current quarter. Consolidated net operating income was $214.1 million in the quarter versus $202.8 million a year earlier, driven by strong growth in spread-based institutional products, retail fixed annuities, Maritime Life operations and the non-traditional life and long-term care lines in the Protection segment. Partially offsetting this growth were declines in earnings for traditional life, variable annuities and the Corporate & Other segment. Per-share net operating income increased 8.8% to $0.74 diluted from $0.68 diluted. "John Hancock's solid operating performance reflects the value of our diversified products and a distribution system that is committed to meeting the varied and changing financial needs of our customers," said David F. D'Alessandro, chairman and chief executive officer. "The business environment remains challenging, especially as it pertains to our credit outlook. With prudent expense and capital management, we expect to stay on course for 7-11% growth in operating earnings per share. However, we have revised upward our estimate of gross losses from asset impairments and sales, although we still expect to increase book value in line with expected earnings growth." The following table reconciles net income with consolidated net operating income: -------------------------------------------------------------------------------------------------------- Net income reconciliation (Table 2) 1st Quarter 2003 1st Quarter 2002 -------------------------------------------------------------------------------------------------------- (millions) Consolidated net operating income $214.1 $202.8 Net realized investment and other gains (losses) $39.1 ($52.7) Severance/other -- ($3.6) -- ------ Total non-operating items $39.1 ($56.3) Net income $253.2 $146.5 -------------------------------------------------------------------------------------------------------- 2 2003 Financial Outlook The company's guidance for 2003 net operating income per share growth of 7-11% is based on continued business growth, an expectation of equity market appreciation averaging 2% per quarter in the year, improving economic conditions and strengthening consumer confidence in the second half of the year. The company revised its credit outlook estimates for total pre-tax gross investment losses to between $650 million and $750 million, excluding FAS 133 hedging adjustments. In 2002, total pre-tax gross investment losses were $876.5 million, excluding hedging adjustments. The company expects to generate gross gains in 2003 that will largely offset potential gross losses, including the gain on the sale of the home office as well as potential gains on the sales of bonds and equity securities, prepayment gains and potential recoveries on impaired assets. Due to the unpredictability of the timing and recognition of gains and losses, especially items such as prepayment gains, hedging adjustments and recoveries, as well as the unpredictable nature of certain other unusual or non-recurring items that management believes are not indicative of ongoing operational performance, guidance on GAAP net income cannot readily be estimated. Accordingly, the company is unable to provide guidance with respect to, or a reconciliation of guidance on net operating income per share to GAAP net income. "We are very disappointed that the weakness in the economy appears to be lingering even with the Iraqi war situation largely resolved," said D'Alessandro. "Our core businesses are strong and, with the gain from the sale of the home office properties, embedded gains in our portfolios and potential recoveries on impaired securities, we expect to fully maintain our strong capital position." Business Segment Highlights Protection Segment - -------------------------------------------------------------------------------------------------------------------------------- Net operating income Q1 Q1 % pre-tax (millions) 2003 2002 Change Comment - -------------------------------------------------------------------------------------------------------------------------------- Total Protection $115.0 $110.0 4.5% Gains in non-traditional life and long-term care were - ---------------- partially offset by a decline in traditional life. Traditional life $37.5 $43.9 (14.6%) Decline due primarily to lower net investment income and slightly unfavorable mortality. Non-traditional life $44.7 $40.7 9.8% Favorable mortality and higher investment income on growing universal life book were partially offset by negative impact of poor separate account performance on fees and DAC amortization. Long-term care $30.0 $26.0 15.4% Growth in the business, interest on higher reserves and expense management were partially offset by continued low lapse rates and higher DAC amortization. Federal long-term care $2.3 -- N/M Fee income received for JHF share of the business in the new federal long-term care joint venture with MetLife. - -------------------------------------------------------------------------------------------------------------------------------- Sales (millions) * Core life (excludes bank- $34.2 $50.3 (32.0%) Strong growth in universal life sales, up 129%, were offset and corporate-owned by lower variable life sales, down 71%. (COLI/BOLI)) Total life $46.9 $82.2 (42.9%) Decline driven by 60% decrease in COLI/BOLI sales. (includes COLI/BOLI ) Long-term care $51.6 $35.0 47.4% Growth driven by strong sales of new retail LTC product introduced mid-2002 and new distribution relationships. - -------------------------------------------------------------------------------------------------------------------------------- *Sales are presented as defined by the Life Insurance Marketing Research Association (LIMRA) and represent the amount of new business sold during the period. 3 Asset Gathering Segment - --------------------------------------------------------------------------------------------------------------------------------- Net operating income Q1 Q1 % pre-tax (millions) 2003 2002 Change Comment - --------------------------------------------------------------------------------------------------------------------------------- Total Asset Gathering $58.3 $58.5 (0.0%) Strong growth in fixed annuity earnings offset lower fee income - --------------------- in the variable annuity and mutual fund lines. Fixed annuities $38.4 $24.9 54.2% Earnings growth driven by a 35% increase in average account balances, and net investment spreads of 205 basis points (bps) vs. 200 bps in the prior year. Variable annuities $0.1 $9.3 (98.9%) Market depreciation drove a 17% decline in average account balances, reducing fee income and increasing DAC amortization. Mutual funds $14.5 $19.7 (26.4%) Market depreciation drove a 12% decline in average AUM, reducing fee income, partially offset by a 17% decrease in operating expenses. - --------------------------------------------------------------------------------------------------------------------------------- Sales (millions) Fixed annuity $976.4 $761.3 28.3% Higher sales over the 2002 quarter were driven by growth in both the Signator and bank channels. Variable annuity $95.8 $158.3 (39.5%) Variable annuity sales continued to suffer from low demand for equity-based products. Mutual funds $926.9 $817.9 13.3% Growth driven by $300 million in sales from a new closed-end preferred income fund, partially offset by a decline in retail mutual fund sales. - --------------------------------------------------------------------------------------------------------------------------------- Average account balances (billions) Fixed annuity $9.21 $6.83 34.8% Asset growth was driven by continued strong sales and lower lapse rates. Variable annuity $5.21 $6.28 (17.0%) Decline was driven by market depreciation of $836 million since year-ago quarter, and higher lapse rates. Mutual funds $25.70 $29.03 (11.5%) AUM decline driven by market depreciation of $3.6 billion since year-ago quarter, partially offset by net sales of $870 million. - --------------------------------------------------------------------------------------------------------------------------------- 4 Guaranteed & Structured Financial Products Segment - -------------------------------------------------------------------------------------------------------------------------------- Net operating income pre-tax Q1 Q1 % (millions) 2003 2002 Change Comment - -------------------------------------------------------------------------------------------------------------------------------- Total GSFP $124.9 $100.2 24.7% Solid growth in spread-based earnings was partially offset by - ---------- the lower fee-based pension results. Spread-based $118.2 $91.6 29.0% Growth was driven by unusually high investment margin of 174 bps due primarily to increased investments in high quality leveraged lease transactions versus 156 bps last year, as well as by a 9% increase in average assets. Fee-based $6.7 $8.6 (22.1%) Decline due primarily to increased operating expenses. - -------------------------------------------------------------------------------------------------------------------------------- Spread-based sales (millions) Guaranteed investment $35.5 $390.5 (90.9%) Decline reflected sharply lower demand for traditional GICs contracts (GICs) and increased market competition. Funding $831.5 $1,119.7 (25.7)% Decline reflects less attractive pricing for certain agreements maturities that resulted in lower total sales overall. Group annuities $32.2 $42.6 (24.4%) Lower demand for group annuities and increased market competition resulted in lower sales. SignatureNotes $211.9 -- N/M Continued strong sales on product introduced late in 2002. - -------------------------------------------------------------------------------------------------------------------------------- Investment Management Segment - -------------------------------------------------------------------------------------------------------------------------------- Net operating income pre-tax Q1 Q1 % (millions) 2003 2002 Change Comment - -------------------------------------------------------------------------------------------------------------------------------- Total Investment $9.1 $7.7 18.2% Growth driven by gains in real estate and investment - ---------------- management advisory businesses, offset by lower earnings at Management Independence. - ---------- Independence $0.1 $1.8 (94.4%) Decrease driven by lower asset management fees due to Investment continued market depreciation. Other Investment $9.0 $5.9 52.5% Increase driven by a gain on a commercial mortgage Management securitization. - -------------------------------------------------------------------------------------------------------------------------------- 5 Maritime Life Segment - ------------------------------------------------------------------------------------------------------------------------------- Net operating income Q1 Q1 % pre-tax (millions) 2003 2002 Change Comment - ------------------------------------------------------------------------------------------------------------------------------- Total Maritime $31.8 $24.2 31.4% Growth driven by solid profit margins due in part to - --------------- repricing the group health business. Retail protection $17.9 $15.0 19.3% Increase driven by growth in the critical needs product line and improved benefit ratio. Asset gathering $7.8 $5.0 56.0% Improved expense margins offset lower separate account fees associated with weak market performance. Group life and health $7.6 $5.2 46.2% Growth driven by the impact of pricing increases in the group health line in 2002. - ------------------------------------------------------------------------------------------------------------------------------- Sales (millions) Retail protection $11.6 $10.9 6.4% Strong sales of living benefits products offset decline in traditional life sales. Asset Gathering $165.7 $165.0 (1.3%) Overall weak demand for equity-based products, slightly offset by higher pension sales. Group Life & Health $21.3 $37.2 (34.6%) New sales more than doubled to $16.2 million, but were offset by lower plan extensions, which were unusually high in the first quarter of 2002. - ------------------------------------------------------------------------------------------------------------------------------- Corporate & Other Segment - ------------------------------------------------------------------------------------------------------------------------------- Net operating income Q1 Q1 % pre-tax (millions) 2003 2002 Change Comment - ------------------------------------------------------------------------------------------------------------------------------- Total Corporate ($42.3) ($11.8) (259%) Decrease driven primarily by higher pension costs, a charge for - --------------- outsourcing certain information technology services, lower & Other income on partnership investments and capital investments in - -------- business unit growth. - ------------------------------------------------------------------------------------------------------------------------------- 6 Additional Financial Data The following table provides additional financial data: - --------------------------------------------------------------------------------------------------------------------------------- Table 3 March 31, 2003 March 31, 2002 - --------------------------------------------------------------------------------------------------------------------------------- Consolidated net operating income return on equity 14.5% 14.6% (excluding FAS 115 market adjustment)* Operating income adjustments 2.7% (4.0)% Net income return on equity (excluding FAS 115 market adjustment) 17.2% 10.6% Unrealized appreciation (depreciation) on AFS securities (1.6)% (0.5)% Net income return on shareholders equity 15.6% 10.1% Shareholders' equity (excluding FAS 115 market adjustment)* $6,071.4 million $5,577.8 million Per share $21.01 $18.86 Unrealized appreciation (depreciation) on AFS securities (net of tax) $735.4 million $217.2 million Per share $2.55 $0.74 Shareholders' equity $6,806.8 million $5,794.9 million Per share $23.52 $19.60 End of period shares outstanding 288.96 million 295.72 million Assets under management General account $70.1 billion $59.7 billion Separate account $20.6 billion $22.8 billion Third party $39.7 billion $42.8 billion - --------------------------------------------------------------------------------------------------------------------------------- Total consolidated $130.4 billion $125.3 billion - --------------------------------------------------------------------------------------------------------------------------------- * FAS 115 requires the adjustment of available for sale securities to fair market value. Without the FAS 115 adjustment, these assets would be reported at book value. John Hancock management believes that presentation of balance sheet information without the FAS 115 adjustment, along with the GAAP basis, provides information that may enhance investors' understanding of the company's financial performance. Many industry analysts prefer to view this data excluding the FAS 115 adjustment. - --------------------------------------------------------------------------------------------------------------------------------- 7 Forward-looking Statements The statements, analyses, and other information contained herein relating to trends in the company's operations and financial results, the markets for the company's products, the future development of the company's business, and the contingencies and uncertainties to which the company may be subject, as well as other statements including words such as "anticipate," "believe," "plan," "estimate," "expect," "intend," "will," "should," "may," and other similar expressions, are "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. Such statements are made based upon management's current expectations and beliefs concerning future events and their potential effects on the company. Future events and their effects on the company may not be those anticipated by management. John Hancock's actual results may differ materially from the results anticipated in these forward-looking statements. For a discussion of factors that could cause or contribute to such material differences, investors are directed to the risks and uncertainties discussed in our Form 10-K for the year ended December 31, 2002, and other documents filed by the company with the Securities and Exchange Commission. These risks and uncertainties include, without limitation, the following: changes in general economic conditions; the performance of financial markets and interest rates; customer responsiveness to existing and new products and distribution channels; competitive and business factors; new tax or other legislation; and government regulation. The company specifically disclaims any obligation to update or revise any forward-looking information, whether as a result of new information, future developments or otherwise. Conference Call John Hancock will discuss first quarter results during a conference call on Friday, May 2, 2003, at 10:00 a.m. Eastern Time. The conference call will be available live -- and for replay -- at www.jhancock.com/investor. The live call can also be accessed by telephone in the U.S. at (703) 871-3021, and a rebroadcast will be available through May 9, 2003, at (703) 925-2533. The replay access code will be 6327616. This press release, the company's quarterly financial supplement, and other financial documents may be obtained at www.jhancock.com/investor. John Hancock Financial Services, Inc., with $130.4 billion in assets under management, provides a wide range of insurance and investment products and services to individual and institutional customers. Contacts Media: Roy Anderson, 617-572-6385; Leslie Uyeda, 617-572-6387 Investors: Jean Peters, 617-572-9282; Larry Edelman, 617-572-0521 Supplemental Financial Information Follows 8 Consolidated Operating Income Statements ($ millions) Three months ended March 31, 2003 2002 -------------------------------- Premiums $833.7 $742.4 Universal life and investment-type product fees 202.4 194.4 Net investment income 1,029.3 969.9 Net realized investment gains (losses) (1) 1.5 (0.8) Investment management revenues/ commissions/other fees 125.1 147.8 Other revenue 73.2 77.0 -------------------------------- Total revenues (1) 2,265.2 2,130.7 Benefits to policyholders 1,357.0 1,232.4 Other operating costs and expenses (2) 393.7 394.1 Amortization of deferred policy acquisition costs 79.9 70.3 Dividends to policyholders 137.8 145.1 -------------------------------- Total benefits and expenses (2) 1,968.4 1,841.9 Pre-tax operating income 296.8 288.8 Income tax 82.7 86.0 -------------------------------- Operating income $214.1 $202.8 After-tax adjustments: Net realized investment gains(losses) (1) 39.1 (52.7) Severance/other (2) - (3.6) -------------------------------- Net income $253.2 $146.5 ================================ (1) Excludes $61.1 million and ($84.9) million of pre-tax realized investment gains (losses) treated as operating income adjustment. (2) Effective Q1 2003, severance charges are part of segment operating income. For the Q1 2003 period $6.2 million of pre-tax severance charges were included in operating income in the Corporate & Other segment. For the Q1 2002 period, $3.6 million of after-tax severance charges were included in "Other" as a non-operating income item. 9 Consolidated Balance Sheet ($ millions) March 31, December 31, 2003 2002 --------------------------------------- Assets Investments Fixed maturities: Held-to-Maturity - at amortized costs (fair value: 2003 - $1,683.9; 2002 - $1,781.8) $1,653.7 $1,732.2 Available-for-sale - at fair value (cost: 2003 - $46,954.4; 2002 - $44,755.0) 48,570.9 45,847.3 Trading securities - at fair value (cost: 2003 - $20.5; 2002 - $18.9) 20.1 18.9 Equity securities: Available-for-sale - at fair value (cost: 2003 - $618.0; 2002 - $627.7) 707.8 672.3 Trading securities - at fair value (cost: 2003 - $337.0; 2002 - $287.5) 296.7 296.3 Mortgage loans on real estate 12,047.2 11,805.7 Real estate, net of accumulated depreciation 328.8 318.6 Policy loans 2,107.1 2,097.2 Short-term investments 263.7 211.2 Other invested assets 2,666.2 2,937.8 --------------------------------------- Total Investments 68,662.2 65,937.5 Cash and cash equivalents 2,319.7 1,190.6 Accrued investment income 773.1 785.9 Premiums and accounts receivable 236.5 217.1 Deferred policy acquisition costs 4,083.6 3,996.3 Reinsurance recoverable 1,647.9 1,777.2 Other assets 3,217.0 3,132.2 Separate accounts assets 20,606.6 20,827.3 --------------------------------------- Total Assets $101,546.6 $97,864.1 ======================================= 10 Consolidated Balance Sheet--continued ($ millions) March 31, December 31, 2003 2002 --------------------------------------- Liabilities and Shareholders' Equity Liabilities Future policy benefits $41,413.7 $39,657.0 Policyholders' funds 23,085.0 23,054.4 Consumer Notes 492.0 290.2 Unearned revenue 966.9 895.8 Unpaid claims and claim expense reserves 218.5 205.6 Dividends payable to policyholders 579.2 585.7 Short-term debt 347.4 348.9 Long-term debt 1,475.8 1,450.3 Income taxes 1,352.4 1,096.8 Other liabilities 4,053.3 3,078.3 Separate accounts liabilities 20,606.6 20,827.3 --------------------------------------- Total Liabilities 94,590.8 91,490.3 Minority Interest 160.5 162.7 Shareholders' Equity Common stock, $.01 par value; 2.0 billion shares authorized; 318.9 million and 317.5 million shares issued, respectively 3.2 3.2 Additional paid in capital 5,141.6 5,127.9 Retained earnings 1,867.2 1,614.0 Unrealized appreciation on AFS securities 735.4 458.3 Foreign currency translation adjustment (23.2) (67.5) Additional pension liability (60.6) (62.1) Cash flow hedges 200.5 194.5 Treasury stock, at cost (29.9 million and 29.5 million shares, respectively) (1,068.8) (1,057.2) --------------------------------------- Total Shareholders' Equity 6,795.3 6,211.1 --------------------------------------- Total Liabilities and Shareholders' Equity $101,546.6 $97,864.1 ======================================= 11 Consolidated Statements of Changes in Stockholders' Equity and Comprehensive Income ($ millions) Accum. Add'l Other Common Paid in Retained Treasury Comp. Total Stock Capital Earnings Stock Income Equity ---------------------------------------------------------------------------------- Balance at January 1, 2002 $3.2 $5,099.3 $1,206.7 $(672.2) $228.0 $5,865.0 Additional paid in capital 10.1 10.1 Treasury stock acquired (105.2) (105.2) Comprehensive income: Net income 146.5 146.5 Other comprehensive income, net of tax: Net unrealized gains (losses) (110.2) (110.2) Foreign currency translation adjustment (0.6) (0.6) Minimum pension liability 1.2 1.2 Cash flow hedges (11.9) (11.9) ---------------- Comprehensive income 25.0 ---------------------------------------------------------------------------------- Balance at March 31, 2002 $3.2 $5,109.4 $1,353.2 $(777.4) $106.5 $5,794.9 ================================================================================== Balance at January 1, 2003 $3.2 $5,127.9 $1,614.0 $(1,057.2) $523.2 $6,211.1 Additional paid in capital 13.7 13.7 Treasury stock acquired (11.6) (11.6) Comprehensive income: Net income 253.2 253.2 Other comprehensive income, net of tax: Net unrealized gains (losses) 277.1 277.1 Foreign currency translation adjustment 44.3 44.3 Minimum pension liability 1.5 1.5 Cash flow hedges 6.0 6.0 ---------------- Comprehensive income 582.1 ---------------------------------------------------------------------------------- Balance at March 31, 2003 $3.2 $5,141.6 $1,867.2 $(1,068.8) $852.1 $6,795.3 ==================================================================================
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