(1) Income from discontinued operations in 2001 includes loss on sale of the Dental Division and other costs related to the discontinuance, net of income tax. (2) Due to early extinguishments of debt, net of income tax. (3) Cumulative effect of change in accounting principle relating to SFAS No. 133, net of income tax. (4) Prior periods have been restated to reflect a two-for-one stock split on April 1, 1998, and to reflect discontinued operations. (5) Net income excluding extraordinary loss, change in accounting principle, and income from discontinued operations. (6) Net income excluding realized investment gains and losses and related amortization, extraordinary loss, change in accounting principle, and income from discontinued operations. 2000 excludes income from sale of Hong Kong affiliate of $.24 per share.
DECEMBER 31 ---------------------------------------------------------------------------- 2001 2000 1999 1998 1997 ---------------------------------------------------------------------------- (DOLLARS IN THOUSANDS) BALANCE SHEET DATA Total assets........................... $ 19,718,824 $ 15,145,633 $ 12,994,164 $ 11,989,495 $ 10,511,635 Long-term debt(7)...................... $ 376,211 $ 306,125 $ 181,023 $ 152,286 $ 120,000 Total debt(7).......................... $ 376,211 $ 306,125 $ 236,023 $ 172,035 $ 120,000 9% Cumulative Monthly Income Preferred Securities, Series A $ 55,000 $ 55,000 8.25% Trust Originated Preferred Securities......................... $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000 7.5% Trust Originated Preferred Securities......................... $ 100,000 6.5% FELINE PRIDES $ 115,000 $ 115,000 $ 115,000 $ 115,000 Share-owners' equity $ 1,400,144 $ 1,114,058 $ 865,223 $ 944,194 $ 758,197 Share-owners' equity excluding net unrealized gains and losses on investments $ 1,345,816 $ 1,165,431 $ 1,011,304 $ 889,137 $ 696,470
2001 2000 1999 REVENUES ---- ---- ---- Dividends from subsidiaries* $ 3,701 $ 27,362 $ 18,980 Service fees from subsidiaries* 87,239 78,999 82,559 Net investment income 6,804 7,173 10,506 Realized investment gains (losses) (12,341) 6,856 (5,817) Other income (loss) (2000 - sale of affiliate) 24,856 1,327 -------- -------- -------- 85,403 145,246 107,555 -------- -------- -------- EXPENSES Operating and administrative 55,256 50,600 44,074 Interest - subsidiaries* 10,163 14,085 17,217 Interest - other 22,859 18,082 12,215 -------- -------- -------- 88,278 82,767 73,506 -------- -------- -------- INCOME BEFORE FEDERAL INCOME TAX AND OTHER ITEMS BELOW (2,875) 62,479 34,049
INCOME BEFORE EQUITY IN UNDISTRIBUTED INCOME OF SUBSIDIARIES (725) 46,011 22,913
EQUITY IN UNDISTRIBUTED INCOME OF SUBSIDIARIES* 141,783 91,343 108,535 -------- ------- --------
INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF INCOME TAX (9,977) 16,122 21,642
LOSS FROM SALE OF DISCONTINUED OPERATIONS, NET OF INCOME TAX (20,545)
Cash 2,114 2,958 Accrued investment income 247 Receivables from subsidiaries* 18,171 14,348 Property and equipment, net 285 513 Other 36,466 19,880 --------- --------- $2,045,798 $1,678,946 ========= ========= LIABILITIES Accrued expenses and other liabilities $ 77,186 $ 42,750 Accrued income taxes (17,336) (32,264) Deferred income taxes 36,150 54,716 Debt: Senior and Medium-Term Notes 369,241 303,810 Subsidiaries* 180,413 195,876 --------- --------- 645,654 564,888 --------- --------- SHARE-OWNERS' EQUITY Preferred Stock Junior Participating Cumulative Preferred Stock Common Stock 36,626 34,667 Additional paid-in capital 405,420 289,819 Treasury stock (15,895) (12,812) Stock Held in Trust (1,535) (1,318) Unallocated stock in Employee Stock Ownership Plan (3,317) (3,686) Retained earnings (including undistributed income of subsidiaries: 2001 - $1,064,188; 2000 - $922,405) 924,517 858,761 Accumulated other comprehensive income Net unrealized gains (losses) on investments (all from subsidiaries, net of income tax: 2001 - $29,254; 2000 - $(27,662)) 54,328 (51,373) --------- --------- 1,400,144 1,114,058 --------- --------- $2,045,798 $1,678,946 ========= ========= ------------------ *Eliminated in consolidation. See notes to condensed financial statements.
NOTE 2 - DEBT At December 31, 2001, the Company had no borrowings under its $200 million line of credit arrangements. $100.0 million of Floating Rate Senior Notes due 2003, $75.0 million of Senior Notes due 2004, $49.9 million of Senior Notes due 2010, $9.9 million of Medium-Term Notes due 2011, $39.9 million of Senior Notes due 2015, $59.9 million of Senior Notes due 2016, $77.3 million of subordinated debentures due 2027, $34.7 million of Senior Notes due 2030, and $103.1 million of subordinated debentures due 2031 were outstanding at December 31, 2001. The subordinated debentures were issued to affiliates in connection with the issuance by such affiliates of Trust Originated Preferred Securities.
Interest Paid to Subsidiary* 10,163 14,085 17,218 -------- ------- -------- $ 32,856 $28,781 $ 29,433 ======== ======= ======== Income Taxes (reduced by amounts received from affiliates under a tax sharing agreement) $ 3,000 $32,039 $(18,584) ======== ======= ======== NONCASH INVESTING AND FINANCING ACTIVITIES
NOTE 5 - SALE OF AFFILIATE In 2000, the Company completed the sale of its Hong Kong affiliate. Included as a component of other income is $24.8 million relating to the transaction.
COL. A COL. B COL. C COL. D COL. E COL. F ------ ------ ------ ------ ------ ------ STABLE VALUE CONTRACTS, ANNUITY DEFERRED CONTRACTS AND POLICY FUTURE POLICY OTHER NET PREMIUMS ACQUISITION BENEFITS AND UNEARNED POLICYHOLDERS' AND POLICY SEGMENT COSTS CLAIMS PREMIUMS FUNDS FEES ------------------------------------------------------------------------------------------------------------------- Year Ended December 31, 2001: Life Marketing $ 829,021 $3,326,841 $ 303 $ 86,937 $120,995 Acquisitions 418,268 3,046,401 434 876,221 182,433 Stable Value Contracts 6,374 - - 3,872,637 Annuities 128,488 281,074 - 2,232,779 28,145 Credit Products 141,882 208,818 901,062 2,773 250,061 Corporate and Other 8,650 16,573 2,241 247 37,035 Adjustments(2) 92,085 334 24,193 ---------- ---------- -------- ---------- -------- TOTAL $1,532,683 $6,971,792 $904,374 $7,095,787 $618,669 ========== ========== ======== ========== ======== Year Ended December 31, 2000: Life Marketing $ 630,838 $2,721,847 $ 315 $ 101,105 $ 99,813 Acquisitions 223,430 1,364,830 484 238,466 102,997 Stable Value Contracts 2,144 162,236 - 3,177,863 - Annuities 127,334 306,021 - 1,633,203 30,127 Credit Products 112,135 292,634 931,735 3,963 220,421 Corporate and Other 81,711 70,729 2,261 1,286 36,432 Adjustments(2) 11,788 113,660 2,721 64,404 ---------- ---------- -------- ---------- -------- TOTAL $1,189,380 $5,031,957 $937,516 $5,220,290 $489,790 ========== ========== ======== ========== ======== Year Ended December 31, 1999: Life Marketing $115,713 Acquisitions 114,866 Stable Value Contracts - Annuities 24,248 Credit Products 107,969 Corporate and Other 35,934 Adjustments -------- TOTAL $398,730 ========
COL. A COL. G COL. H COL. I COL. J ------ ------ ------ ------ ------ AMORTIZATION OF DEFERRED NET BENEFITS AND POLICY OTHER INVESTMENT SETTLEMENT ACQUISITIONS OPERATING SEGMENT INCOME(1) EXPENSES COSTS EXPENSES(1) -------------------------------- ---------------- ---------------- ---------------- -------------- Year Ended December 31, 2001: Life Marketing $179,346 $190,538 $ 41,399 $ 49,743 Acquisitions 187,535 238,877 20,501 43,232 Stable Value Contracts 261,079 222,306 1,662 3,961 Annuities 167,905 137,204 24,021 29,434 Credit Products 48,940 154,893 57,681 99,103 Corporate and Other 39,236 28,806 1,794 59,466 Adjustments(2) -------- -------- -------- -------- TOTAL $884,041 $972,624 $147,058 $284,939 ======== ======== ======== ======== Year Ended December 31, 2000: Life Marketing $152,511 $149,430 $ 48,771 $ 47,861 Acquisitions 116,940 125,151 17,081 24,939 Stable Value Contracts 243,132 207,143 900 3,881 Annuities 132,314 109,607 24,156 25,403 Credit Products 47,029 135,494 50,132 90,958 Corporate and Other 38,223 33,953 2,140 56,054 Adjustments(2) -------- -------- -------- -------- TOTAL $730,149 $760,778 $143,180 $249,096 ======== ======== ======== ======== Year Ended December 31, 1999: Life Marketing $138,198 $147,631 $ 29,481 $ 66,391 Acquisitions 129,806 129,581 19,444 31,967 Stable Value Contracts 210,208 175,290 744 4,709 Annuities 106,645 88,642 19,820 21,014 Credit Products 24,506 55,899 24,718 57,382 Corporate and Other 58,605 32,613 2,482 44,124 Adjustments -------- -------- -------- -------- TOTAL $667,968 $629,656 $ 96,689 $225,587 ======== ======== ======== ========