Properties The Company’s Home Office is located at 2801 Highway 280 South, Birmingham, Alabama. This campus includes the original 142,000 square-foot building which was completed in 1976 and a second contiguous 220,000 square-foot building which was completed in 1985. In addition, parking is provided for approximately 1,200 vehicles. During 2000, the Company began construction of a third contiguous building which will have approximately 315,000 square feet and parking for approximately 1,560 vehicles.
YEAR ENDED DECEMBER 31 ---------------------------------------------------------------------------- 2000 1999 1998 1997 1996 -------------- --------------- -------------- -------------- --------------- (dollars in thousands, except per share amounts) INCOME STATEMENT DATA
Financial Statements and Supplementary Data The financial statements and supplementary data for the Company and its subsidiaries, which are included under the caption “Consolidated Financial Statements” in the Company’s 2000 Annual Report to Share Owners, are incorporated herein by reference.
Our audits of the consolidated financial statements referred to in our report dated March 1, 2001 appearing in the Annual Report to Share Owners of Protective Life Corporation and subsidiaries (which report and consolidated financial statements are incorporated by reference on this Annual Report on Form 10-K) also included an audit of the financial statement schedules listed in Item 14 (a) (2) of this Form 10-K. In our opinion, these financial statement schedules present fairly, in all material respects, the information set forth therein when read in conjunction with the related consolidated financial statements.
INCOME TAX EXPENSE 16,468 11,136 9,843 ------ ------ ------ INCOME BEFORE EQUITY IN UNDISTRIBUTED INCOME OF SUBSIDIARIES 46,011 22,913 73,724
EXTRAORDINARY LOSS ON EARLY EXTINGUISHMENT OF DEBT 1,763 ------- ------- ------- NET INCOME $153,476 $151,327 $130,781 ======= ======= =======
DECEMBER 31 ----------------------------------- 2000 1999 ASSETS ---- ---- Investments: Fixed maturities $ 24,511 $ 20,791 Other long-term investments 18,027 17,616 Short-term investments 4,000 2,000 Investments in subsidiaries (equity method)* 1,594,462 1,323,233 --------- --------- 1,641,000 1,363,640
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT STATEMENTS OF CASH FLOWS PROTECTIVE LIFE CORPORATION (Parent Company) Years Ended December 31, 2000, 1999, and 1998 (in thousands) 2000 1999 1998 ---- ---- ---- CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 153,476 $ 151,327 $ 130,781 Adjustments to reconcile net income to net cash provided by operating activities: Realized investment (gains) losses (6,856) 5,817 (985) Equity in undistributed net income of subsidiaries* (107,465) (130,177) (57,057) Deferred income taxes 25,947 7,935 15,446 Accrued income taxes (43,080) 19,666 (8,850) Accrued expenses 6,822 4,380 14,507 Accrued investment income 1,913 (2,160) Receivables from subsidiaries 8,976 (8,746) (7,342) Other (net) (11,255) 5,884 361 ------- ------- ------ Net cash provided by operating activities 28,478 53,926 86,861 ------- ------- ------ CASH FLOWS FROM INVESTING ACTIVITIES Purchase of and/or additional investments in subsidiaries* (102,987) (28,638) (115,960) Return of capital from subsidiaries 34,288 14,621 Principal payments received on loan to subsidiary* 4,000 4,000 2,000 Change in fixed maturities and long-term investments 3,047 (5,516) (1,257) Change in short-term investments (2,000) (2,000) 7,000 ------- ------ ------- Net cash used in investing activities (63,652) (17,533) (108,217) ------- ------ ------- CASH FLOWS FROM FINANCING ACTIVITIES Borrowings under line of credit arrangements and long-term debt 237,104 106,800 52,000 Principal payments on line of credit arrangements and debt (166,979) (41,538) (3,577) Repayment of subsidiary debt (69,621) Purchase of Common Stock (697) (621) Dividends to Share Owners (32,919) (30,305) (26,857) ------- ------- ------ Net cash provided by (used in) financing activities 36,509 (35,285) 21,566 ------- ------- ------
INCREASE (DECREASE) IN CASH 1,335 1,108 210 CASH AT BEGINNING OF YEAR 1,623 515 305 ----- ----- --- CASH AT END OF YEAR $ 2,958 $ 1,623 $ 515 ===== ===== ===
The Company publishes consolidated financial statements that are its primary financial statements. Therefore, these parent company condensed financial statements are not intended to be the primary financial statements of the Company, and should be read in conjunction with the consolidated financial statements and notes thereto of Protective Life Corporation and subsidiaries.
2000 1999 1998 ------------------------------------------- CASH PAID (RECEIVED) DURING THE YEAR FOR:
NOTE 3 - SUBSIDIARY SURPLUS DEBENTURES Protective Life Insurance Company (Protective Life) has issued surplus debentures to the Company in order to finance acquisitions and growth. At December 31, 2000, the balance of the surplus debentures was $10.0 million. The surplus debentures are included in receivables from subsidiaries. Protective Life must obtain the approval of the Tennessee Commissioner of Insurance before it may pay interest or repay principal on the surplus debentures.