As of December 31, 2009, the statutory surplus was $96.1 million, compared to $89.8 million as of December 31, 2008. The reserve for unpaid claims and claim adjustment expenses stood at $75.3 million and $75.5 million at December 31, 2009 and 2008, respectively, of which unpaid claims and claim adjustment expenses attributable to ongoing nonstandard personal automobile lines was $69.4 million and $66.0 million, respectively.
The Company experienced a Claims and claims adjustment expense (“C & CAE”) ratio for nonstandard personal auto in 2009 of 75.3% as compared with 2008 of 74.2%. We believe the increase in the C & CAE ratio for 2009 as compared to 2008 is primarily due to an increase in accident frequency, particularly in Florida. The Company’s ability to maintain or improve upon this C & CAE ratio is subject to the significant risks and uncertainties, including the risks associated with growth in premiums and the fact that new business generally produces higher claims ratios than renewal business. In addition, the Company has encountered an increase in potential claims fraud in Florida and other markets, which has led to an increase in reported frequency, a higher number of open claims and potentially higher claims costs (see ITEM 1A. Risk Factors).
Although premium levels in 2008 and 2009 are generally comparable, the Company experienced a reduction in premiums in the second half of 2009, and we anticipate that this trend will continue in 2010. Important factors leading to this trend were rate increases designed to improve profitability, planned reductions in unprofitable segments of business in Florida, and termination of relationships with certain agents. Gross premiums written were $53.2 million in the first quarter of 2009, $45.0 million in the second quarter, $45.7 million in the third quarter and $35.7 million in the fourth quarter.
Index to Financial Statements The following table presents selected financial information:
The Company continues to settle and reduce its inventory of open commercial lines claims. As of December 31, 2009, in respect of its runoff lines, the Company had $3.1 million in net unpaid C & CAE compared to $7.1 million as of December 31, 2008. For the periods presented, the Company has recorded favorable development in unpaid C & CAE from the runoff lines with the settlement and reduction in the inventory of commercial lines claims. See “Results of Operations - Claims and claim adjustment expenses.” Due to the long tail and litigious nature of these claims, the Company anticipates it will take a substantial number of years to complete the adjustment and settlement process with regard to existing claims and the additional claims it expects to receive in the future from its past business writings. Most of the remaining claims are in suit and the Company’s future results may or may not be impacted either negatively or positively based on its ability to settle the remaining claims and new anticipated claims within its established reserve levels.
The discussion below primarily relates to the Company’s insurance operations, although the selected consolidated financial information appearing elsewhere is on a consolidated basis. The expense item “Underwriting and operating expenses” includes the operating expenses of the holding company, GAINSCO, INC. (“GAN”).
Gross premiums written in 2009 decreased 1% as compared to 2008. We believe the primary reasons for the decrease between comparable periods to be the result of planned reductions of unprofitable segments in Florida and cancellation of some large agencies in Arizona. The following table presents gross premiums written by region:
Each of the regions, except for Southwest, recorded premium declines in 2009 from 2008. The percent of premium (decrease) increase by region for 2009 from 2008 is as follows: Southeast (2)%, Southwest 1% and West (33)%. In the Southwest region, we believe product enhancements, rate adjustments and expanded marketing efforts accounts for the slight increase in gross premiums written. Total net premiums earned increased 5% in 2009 from 2008 primarily as a result of the product enhancements, rate adjustments and expanding marketing efforts in the Southeast and Southwest regions during the first six months of 2009.
Net investment income decreased $1,051,000 (14)% in 2009 primarily due to the decline in short-term interest rates. At December 31, 2009, Bonds available for sale comprised 74% of Investments versus 59% at December 31, 2008. The return on average investments was 3.7% in 2009 versus 4.4% in 2008.
The Company recorded total realized investment gains of $2,367,000 in 2009, which includes $3,569,000 related to other-than-temporary impairment losses, of which $3,141,000 was transferred to other comprehensive loss, a component of shareholders’ equity. In 2008, the Company recorded total realized investment losses of $6,313,000 which included $5,670,000 related to other-than-temporary impairment losses of which $3,950,000 was from auction preferred securities backed by the preferred stock of Fannie Mae and Freddie Mac. Variability in the timing of net realized capital gains and losses should be expected.
Other expense was recorded in 2009 as a result of a decrease in ceded unpaid C & CAE under the reserve reinsurance cover agreement on the runoff business. For further discussion on the reserve reinsurance cover agreement, please refer to note 8 - “Summary of Significant Accounting Policies” of the “Notes to the Consolidated Financial Statements” under Part II, Item 8 in this report.
Inflation impacts the Company by causing higher claim settlements than may have originally been estimated. Inflation is implicitly reflected in the reserving process through analysis of cost trends and review of historical reserve results.
Underwriting and operating expenses increased $1,551,000 (5%) in 2009 from 2008 primarily due to an increase in salaries and salary benefits. Underwriting and operating expenses as a percent of Net premiums earned and Agency revenues were 16.6% for 2009 and 2008, respectively.
GAN provides administrative and financial services for its wholly owned subsidiaries. GAN needs cash during 2010 primarily for administrative expenses and interest on the Subordinated debentures and the Note payable. GAN has approximately $4.0 million in cash and marketable securities that can be used for general corporate purposes. Other sources of cash to meet obligations are statutorily permitted dividend payments from its insurance subsidiary, which requires notification of no objection from the Texas Department of Insurance (see note 12 to Consolidated Financial Statements which appears in Item 8 of this Annual Report), and dividends from GAN’s agency subsidiary. For 2009, cash dividends of $1.0 million were paid to GAN by the insurance subsidiary. GAN believes the cash available from its short-term investments and dividends from its subsidiaries should be sufficient to meet its expected obligations for 2010.
As a result of losses in prior years, as of December 31, 2009 the Company had net operating loss carryforwards for tax purposes aggregating $68,529,000. These net operating loss carryforwards of $7,358,000, $33,950,000, $13,687,000, $633,000 and $12,901,000, if not utilized, will expire in 2020, 2021, 2022, 2023 and 2027, respectively. As of December 31, 2009, the tax benefit of the net operating loss carryforwards was $23,300,000, which is calculated by applying the Federal statutory income tax rate of 34% against the net operating loss carryforwards of $68,529,000.
As of December 31, 2009 and 2008, the net deferred tax assets before valuation allowance were $28,967,000 and $32,397,000 and the valuation allowance were $28,830,000 and $29,905,000, respectively. The Company does not record a tax valuation allowance relating to the net unrealized losses on investments, excluding common stocks because it is more likely than not that these losses would reverse or be utilized in future periods. The Company has the ability and it is the Company’s intent to fully recover the principal, which could require the Company to hold these securities until their maturity; therefore, the Company considers the impairment to be temporary.
Net cash provided by operating activities was $3,638,000 for 2009 versus $15,625,000 for 2008. The decrease in cash as a result of operating activities between the periods was primarily attributable to a higher C & CAE paid ratio in 2009 than in 2008.
Investments and Cash increased in 2009 primarily as a result of the increase in fair value of the investment securities with cash from operations also contributing. At December 31, 2009, 80% of the Company’s investments were rated investment grade. The average duration was approximately 2.4 years, including approximately 23% of the Investments that were held in Short-term investments. The Company classifies its bond securities as available for sale and trading. The net unrealized loss associated with the investment portfolio was $181,000 (net of tax effects) at December 31, 2009 (see note 2 of Notes to Consolidated Financial Statements which appear in Item 8 of this Annual Report).
Index to Financial Statements The Company has performed a detailed review of the securities in the investment portfolio and has recorded approximately $3,569,000 in Net realized losses on certain securities that were considered other than temporarily impaired, of which $3,141,000 of the other-than-temporary impairment was recognized in other comprehensive income (loss), a component of shareholders’ equity. The Company, at this time based upon information currently available and management’s evaluation and intent to hold securities to maturity if necessary to recover the cost, expects to recover the net unrealized loss of $181,000 (net of tax effects) and considers this impairment to be temporary.
Deferred policy acquisition costs are principally commissions, premium taxes and marketing expenses which are deferred. The decrease of $1,412,000 in 2009 from 2008 was primarily due to the decrease in commissions and premium taxes as a result of the decrease in premiums earned for the last six months of 2009 from the last six months of 2008.
Unearned premiums decreased primarily as a result of the decrease in premium writings for the six months ended December 31, 2009 from the six months ended December 31, 2008, mentioned previously.
Accounts payable increased primarily due to increases in return premiums due policyholders and bonuses payable.
Premiums payable, Commissions payable and Reinsurance balances payable all decreased primarily due to a fronting reinsurance arrangement that was reducing throughout 2009.
Common stock decreased and Additional paid-in capital increased primarily as a result of a one-for-five reverse split of Common Stock that became effective in June of 2009; see “Capital Transaction” for a detailed discussion
The Company’s estimates of fair value for financial assets and financial liabilities are based on the framework established in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 320-10-65, Investments - Debt an Equity Securities - Overall - Transition and Open Effective Date Information (“ASC 320-10-65). The framework is based on the inputs used in valuation, gives the highest priority to quoted prices in active markets and requires that observable inputs be used in the valuations when available. The disclosure of fair value estimates in the ASC 320-10-65 hierarchy is based on whether the significant inputs into the valuation are observable. In determining the level of the hierarchy in which the estimate is disclosed, the highest priority is given to unadjusted quoted prices in active markets and the lowest priority to unobservable inputs that reflect the Company’s significant market assumptions. The three levels of the hierarchy are as follows:
4. In order to determine the proper classification for each instrument, the Company obtains from its independent pricing service the pricing procedures and inputs used to price the instrument. The Company analyzes this information, taking into account asset type, rating and liquidity, to determine what inputs are observable and unobservable in order to determine the proper ASC 320-10-65 level. For those valued internally, a determination is made as to whether all relevant inputs are observable or unobservable in order to classify correctly.
Costs associated with software developed or purchased for internal use are capitalized based on ASC 350-10-65, Intangibles - Goodwill and Other - Overall - Transition and Open Effective Date Information (“ASC 350-10-65) and other related guidance. Capitalized costs include external direct costs of materials and services consumed in developing or obtaining internal-use software and payroll for employees directly associated with, and who devote time to, the development of the internal-use software. Costs incurred in development and enhancement of software that do not meet the capitalization criteria, such as costs of activities performed during the preliminary and post- implementation stages, are expensed as incurred. Costs incurred in development and enhancements that do not meet the criteria to capitalize are activities performed during the application development stage such as designing, coding, installing and testing. The critical estimate related to this process is the determination of the amount of time devoted by employees to specific stages of internal-use software development projects. We review any impairment of the capitalized costs on a periodic basis.
Pricing decisions based on assumed loss ratios in new states and markets, involving different claims environments, distribution sources and customer demographics, must necessarily be made without the same level of experience and data that is available in existing markets.
We continue to make significant operational changes in management of our claims administration to accelerate the recognition and resolution of claims. These changes may result in an increase in the amount of aggregate claim settlements and cause our ultimate claim and claim adjustment expense to increase in comparison to prior periods. In addition, changing claims trends increase the uncertainties which exist in the estimation process and could lead to inaccurate estimates of claim and claims adjustment expense.
The following discussion provides information regarding the most important assumptions we use in estimating claims reserves in the nonstandard personal automobile insurance business. These assumptions were also important historically in estimating claims reserves in the runoff business but, as discussed below, the decline in the number of remaining runoff claims has made conventional actuarial methods less useful and has resulted in our basing such estimates primarily on case-by-case evaluations of individual claim files.
During 2008, we realized that the historical recovery pattern established by our Southeast claims operation was not applicable to recoveries in states other than Florida. We attempted to take this into consideration in our estimates by modifying our subrogation and salvage loss development factors and use of actuarial judgment.
During 2009, we continued to diversify further. We also expanded into various other driver classes. Expanding into different geographical segments meant writing more business in jurisdictions with different judicial systems and negligence laws, including areas that may be more susceptible to insurance fraud. These changes can affect development patterns, so that historical patterns may not be reflective of future patterns. We attempted to take these changes into consideration in our estimate of reserves by the selection of loss development factors, including extending tail factors to older accident periods, and use of actuarial judgment.
During 2009, we realized that the historical recovery pattern established by our Southeast claims operation was not applicable to recoveries in states other than Florida. We attempted to take this into consideration in our estimates by modifying our subrogation and salvage loss development factors and use of actuarial judgment.
During 2009, we observed significant indications of increased claims fraud and took additional steps to investigate and adjudicate certain claims. One effect of doing so is to lengthen the average period that claims are open, and this change affects the comparability of current claims data as compared with that from prior periods. We attempted to take this change into consideration by the selection of loss development factors and the use of actuarial judgment.
The law of large numbers applies to selecting development patterns; i.e. the confidence of a point estimate is improved by increasing the amount of data used to develop the estimate; however, the data must be reasonably homogeneous, and exhibit little variation over time. Changes associated with the assumptions listed above affect the homogeneity of our data, and the variance associated with the loss development factors derived from the data. This implies that the variance around our point estimate has increased over time, or that the confidence interval around our point estimate has widened over time. This in turn implies there is greater volatility associated with our point estimate and we attempted to take this uncertainty into consideration with our estimates for 2008 and for 2009.
We utilize different processes for the estimation of reserves in the runoff line and in the nonstandard personal automobile business.
Within runoff commercial business, the different lines of business each have somewhat different development characteristics, which we take into account in making reserve estimates, as follows:
General liability - generally, new claims are barred by applicable statutes of limitation. However, we continue to receive new claims for alleged construction defects, even though we have included an exclusion for such liability in general liability policies since 1996. We respond to any claims that are asserted.
Specialty lines - all policies we wrote are on a “claims made” basis, so we do not expect any additional claims.
For private passenger auto business, all coverages are considered short-tailed, as we primarily write minimum limits business (primarily six month policies), and approximately two thirds of our ultimate liabilities are realized within 12 months. For this business, we analyze development patterns separately by state for each state in which we write business, and within each state, by each separate line of coverage we offer in that particular state. We further analyze patterns for each accident quarter to ascertain whether development patterns are changing over time. Analyzing our data in this way allows us to group data in homogeneous sets, while maximizing the degree of credibility for each data set where limited data are available. For states and/or coverages where the data are limited, we also consider development patterns from other markets in which we write business that have more credible amounts of data and which have similar policy limits.
Finally, development patterns can vary by accident quarter as changes have occurred and are expected to continue within our claims department, including the effects of implementation of a new claims management system. We believe that these changes resulted in an acceleration of exposure recognition and in ultimate claim settlement. Our expansion into different geographical areas within each state has caused our mix of business to change, and the credibility associated with data for each accident quarter has changed over time. As a result, our development patterns exhibit a greater variance than the development patterns for a stable, larger and more mature book of business, and we recognize this volatility in our analysis of the data.
Index to Financial Statements We compute unpaid claims and claim adjustment expense (excluding claims department expense IBNR) for the above four provisions on a combined basis, by first estimating ultimate claims and claim adjustment expense (CAE) amounts for each accident quarter, and then subtracting from these amounts the cumulative paid and case reserves on known claims for each accident quarter. There are several methods we utilize to estimate ultimate C & CAE amounts:
The methods listed above assume that the influences that affect the development patterns for each accident quarter will remain constant over time. Because of this, selection of development patterns that will apply to current open claims and claims incurred but not reported must consider several factors. These include, but are not limited to, the impact of inflation on claim costs and changes in the rate of inflation, the rate and level at which our claims adjusters make payments and settle claims and any changes in this rate or level, changes in the adequacy or method used to establish case reserves, changes in the cost of medical care, changes in judicial decisions, legislation changes, and other factors. Changes in any of these factors imply that development patterns are not remaining constant over time - one key assumption in the methods used to estimate ultimate liability. For example, when the rate at which adjusters make payments and settle claims has accelerated over time, ultimate loss estimates developed using the methods employed above may overstate true projected ultimate liabilities, thus adjustments that take these changes in to consideration are utilized. Various methods are used to adjust for these changes including, but not limited to, adjustments that take into consideration changes in exposure recognition, the rate of claims closure and changes in case reserve adequacy as well as tail factor analysis and actuarial judgment.
Index to Financial Statements As of December 31, 2009 and 2008, the net deferred tax asset before valuation allowance was $28,967,000 and $32,397,000, and the valuation allowance was $28,830,000 and $29,905,000, respectively. The Company does not record a tax valuation allowance relating to the net unrealized losses on investments, excluding stocks, because it is more likely than not that these losses would reverse or be utilized in future periods. The Company has the ability and it is the Company’s intent to fully recover the principal, which could require the Company to hold these securities until their maturity; therefore, the Company considers the impairment to be temporary.
During the review of the year end close process for 2009, the Company discovered that compensated absences expense had never been recorded. As of December 31, 2008, the cumulative effect of the error is $1,310,000, which arose over many years, and is considered to be immaterial to the individual prior years. However, since the cumulative impact of correcting this error would have been quantitatively material to the results for the quarter ended December 31, 2009, we applied the guidance of ASC 250-10-S99-1 and S99-2. As such, we revised our previously issued 2008 consolidated financial statements as reflected in the December 31, 2008 Consolidated Balance Sheet, the Consolidated Statement of Operations for the year ended December 31, 2008 and the Consolidated Statement of Shareholders’ Equity and Comprehensive Loss for the year ended December 31, 2008 presented in this report. The cumulative effect of establishing the liability was recorded as an adjustment to the January 1, 2008 balance of Accumulated deficit by $1,359,000. For the year ended December 31, 2008, “Underwriting and operating expenses,” “Total expenses,” “Income (loss) before Federal income taxes” and “Net income (loss)” were each reduced by $49,000 resulting in a decrease of $0.01 for basic and diluted loss per common share. “Other liabilities” and “Total liabilities” were increased by $1,310,000. “Accumulated deficit” and “Total shareholders’ equity” were also decreased by $1,310,000 as of December 31, 2008 by revising the 2008 consolidated financial statements. The revision had no impact on the 2008 Net cash provided by operating activities or Net cash used for investing or financing activities in our Consolidated Statements of Cash Flows. In 2010, the Company expects to change its policies with respect to compensated absences in a manner which is likely to reduce the amount of the liability by a significant amount and favorably impact results of operations. For further details, please refer to note 1 - “Summary of Significant Accounting Policies” of the “Notes to the Consolidated Financial Statements” under Part II, Item 8 in this report.
In June 20090, the FASB issued guidance now codified as ASC 105, Generally Accepted Accounting Principles (“ASC 105”) as the single source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in conformity with U.S. GAAP. ASC 105 explicitly recognizes rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under federal securities laws as authoritative GAAP for SEC registrants. The adoption of ASC 105 did not have a material impact on our financial position, results of operations or cash flows, but does impact our financial reporting process by eliminating all references to pre-codification standards.
The Company early adopted the guidance of ASC 820-10-65, Fair Value Measurements and Disclosures - Overall - Transition and Open Effective Date Information (“ASC820-10-65”) in the first quarter of 2009. ASC 820-10-65 provides additional guidance on: 1) estimating fair value when the volume and level of activity for an asset or liability have significantly decreased in relation to the normal market activity for the asset or liability, and 2) identifying transactions that are not orderly. ASC 820-10-65 must be applied prospectively and retrospective application is not permitted. ASC 820-10-65 is effective for interim and annual periods after June 15, 2009, with early adoption permitted for periods ending after March 15, 2009 subject to also early adoption of ASC 320-10-65. Adoption of ASC 855-10 did not have a material impact on our consolidated results of operations or financial condition. See note 3 to the consolidated financial statements included herein for the application of ASC 820-10-65 and further details regarding fair value measurement of the Company’s financial assets as of December 31, 2009.
Effective July 1, 2009, we adopted FASB Accounting Standards Update (“ASU”) No. 2009-05, Fair Value Measurements and Disclosures (Topic 820) (“ASU 2009-05”). ASU 2009-05 provided amendments to ASC 820, Fair Value Measurements and Disclosures, for the fair value measurements of liabilities. ASU 2009-05 provides clarification that in circumstances in which a quoted market price in an active market for the identical liability is not available, a reporting entity is required to measure fair value using certain techniques. ASU 2009-05 also clarifies that when estimating the fair value of a liability, the reporting entity is not required to include a separate input or adjustment to other inputs relating to the existence of a restriction that prevents the transfer of a liability. ASU 2009-05 also clarifies that both a quoted price in an active market for the identical liability at the measurement date and the quoted price for the identical liability when traded as an asset in an active market when no adjustments to the quoted price of the asset are required are Level 1 fair value measurements. Adoption of ASU 2009-05 did not have a material impact on our consolidated results of operations or financial condition.
The Company early adopted the guidance of ASC 320-10-65, Investments - Debt and Equity Securities - Overall - Transition and Open Effective Date Information (“ASC 320-10-65”) in the first quarter of 2009. ASC 320-10-65 provides new guidance on the recognition and presentation of an other-than-temporary impairment (“OTTI”) for available for sale and held to maturity debt securities (equities are excluded). An impaired security is not recognized as an OTTI impairment if management does not intend to sell the impaired security and it is more likely than not it will not be required to sell the security before the recovery of its amortized costs basis. If management concludes a security is other-than-temporarily impaired, the FSP requires that the difference between the fair value and the amortized cost of the security to be presented as an OTTI charge in the Consolidated Statements of Operations, with an offset for any noncredit-related loss component of the OTTI charge to be recognized in Other comprehensive income (loss). Accordingly, only the credit loss component of the OTTI amount will have an impact on the Company’s results of operations. For all debt securities in unrealized loss positions that do not meet either of the two requirements, ASC 320-10-65 requires the that the Company analyze its ability to recover the amortized cost by comparing the net present value of projected future cash flows with the amortized cost of the security. The net present value is calculated by discounting the Company’s best estimate of projected future cash flows at the effective interest rate implicit in the debt security prior to impairment.
The Company early adopted ASC 825-10-65, Financial Instruments - Overall - Transition and Open Effective Date Information (“ASC 825-10-65”) in the first quarter of 2009. ASC 825-10-65 amends ASC 825-10 to require disclosures about fair value of financial instruments in interim financial statements, as well as in annual financial statements and also amends ASC 270-10 to require those disclosures in all interim financial statements. See note 3 to the consolidated financial statements included herein for these related disclosures.
ASC 325-40-65, Instruments - Overall - Transition and Open Effective Date Information (“ASC 325-40-65) eliminates the requirement that the holder’s best estimate of cash flows be based upon those that a “market participant” would use. ASC 325-40-65 was amended to require recognition of an OTTI when it is “probable” that there has been an adverse change in the holder’s best estimate of cash flows from the cash flows previously projected. This amendment aligns the impairment guidance under ASC 320-10-35. ASC 325-40-65 retains and re-emphasizes the OTTI guidance and disclosures in pre-existing GAAP and SEC requirements. The adoption of ASC 325-40-65 did not have a material impact on the Company’s results of operations or financial position.
All other codified accounting standards and interpretations of those standards issued during the first nine months of 2009 did not relate to accounting policies and procedures pertinent to the Company at this time.
Some of the statements made in this Report are forward-looking statements. Forward-looking statements relate to future events or our future financial performance and may involve known or unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from future results, performance, or achievements expressed or implied by such forward-looking statements.
These forward-looking statements reflect our current views, but they are based on assumptions and are subject to risks, uncertainties, and other variables which you should consider in making an investment decision, including, in addition to the terms discussed under “PART I. ITEM 1A. Risk Factors” of this document, (a) current and future economic conditions and uncertainties and disruptions in financial markets that may materially and adversely affect our business (including the heightened potential for claims fraud), operations, capital and liquidity, (b) the unpredictability of governmental actions affecting financial institutions and other financial firms and/or rating agencies, (c) operational risks and other challenges associated with growth into new and unfamiliar markets and states, (d) adverse market conditions, including heightened competition, (e) factors considered by A.M. Best in the rating of our insurance subsidiary, and the acceptability of our current rating, or a future rating, to agents and customers, (f) the Company’s ability to adjust and settle its runoff business on terms consistent with our estimates and reserves, (g) the adoption or amendment of legislation and regulations, uncertainties in the outcome of litigation and adverse trends in litigation, (h) inherent uncertainty arising from the use of estimates and assumptions in decisions about pricing and reserves, (i) the effects on claims levels resulting from natural disasters and other adverse weather conditions, (j) the availability of reinsurance and our ability to collect reinsurance recoverables, (k) the availability and cost of capital, which may be required in order to implement the Company’s strategies, and (l) limitations on the our ability to use net operating loss carryforwards.
The following Consolidated Financial Statements are on pages 64 through 112:
Consolidated Statements of Shareholders’ Equity and Comprehensive Income (Loss) for the Years Ended December 31, 2009 and 2008
Consolidated Statements of Cash Flows for the Years Ended December 31, 2009 and 2008
The following Consolidated Financial Statements Schedules are on pages 113 through 123: