Interest $66.0 $64.7 $63.5 $62.3 $60.8 Dividends 26.0 25.5 25.1 25.1 25.1
Fixed income investment funds are generally invested in securities with short-term and intermediate-term maturities with an objective of maximizing interest and dividend yields. This practice allows
Approximately 95% of the bonds and redeemable preferred stocks held by AFC were rated "investment grade" (credit rating of AAA to BBB) at December 31, 1993, compared to less than 60% at the end of 1988. Investment grade securities generally bear lower yields and lower degrees of risk than those that are unrated and non-investment grade.
1992 compared to 1991 The decrease in equity in net earnings of investees in 1992 reflects primarily the results of Chiquita and GACC, both of which became investees in the third quarter of 1991. Chiquita reported a net loss of $284 million in 1992 attributable principally to (i) sharply increased banana costs and expenses and (ii) lower banana prices in the first half of the year. GACC reported a net loss of $597 million in 1992 which includes a $658 million provision to revalue intangible assets to reflect estimated current market values of broadcasting assets at December 31, 1992. In addition, significant debt, depreciation and amortization expenses continued to more than offset broadcasting results. In connection with a proposed financial restructuring of GACC, AFC transferred all securities and loans related to GACC to the investee account and reduced the carrying value of that investment to estimated net realizable value ($35 million).
In our opinion, such financial statements present fairly, in all material respects, the financial position of American Premier Underwriters, Inc. and Consolidated Subsidiaries at December 31, 1993 and 1992 and the results of its operations and its cash flows for each of the three years in the period ended December 31, 1993 in conformity with generally accepted accounting principles. Also, in our opinion, such financial statement schedules, when considered in relation to the basic financial statements taken as a whole, present fairly in all material respects the information shown therein.
As discussed in Note 1 to the financial statements, in 1992 the Company changed its method of accounting for income taxes to conform with Statement of Financial Accounting Standards No. 109.
As discussed in Notes 1 and 10 to the consolidated financial statements, in 1992 General Cable Corporation changed its method of accounting for income taxes to conform with Statement of Financial Accounting Standards No. 109.
In February 1994, AFC commenced an offer to issue new 9-3/4% Debentures due April 20, 2004 and cash in exchange for its publicly traded debentures. In December 1993, AFC wrote off $24.3 million in unamortized original issue discount and debt issue costs related to the debentures covered in the exchange offer.
The fair market value of AFC's Mandatory Redeemable Preferred Stock approximates stated value.
At December 31, 1993, the Group owned 1,533,767 shares of AFC Common Stock and options to purchase an additional 762,500 shares. The aggregate purchase price for all shares covered by the put is included in "capital subject to mandatory redemption" and amounted to $40 million and $16 million at December 31, 1993 and 1992, respectively. Changes in the aggregate purchase price are charged or credited directly to retained earnings without affecting earnings.