Balance Sheet Data: Total Assets $15,738 $14,999 $14,851 $10,593 $10,077 Long-term Debt: Holding Companies 287 340 648 849 771 Subsidiaries 194 178 234 258 283 Minority Interest 510 307 327 106 109 Capital Subject to Mandatory Redemption - - - 3 49 Other Capital 1,393 1,277 1,248 396 537
1997 1996 1995 Earnings to fixed charges 4.20 4.99 3.10 Earnings to fixed charges plus preferred dividends 3.52 3.96 2.60
Sources of Funds AFC and American Premier are organized as holding companies with almost all of their operations being conducted by subsidiaries. These parent corporations, however, have continuing cash needs for administrative expenses, the payment of principal and interest on borrowings, and shareholder dividends. Funds to meet these obligations come primarily from dividend and tax payments from their subsidiaries.
Management believes these parent holding companies have sufficient resources to meet their liquidity requirements through operations in the short-term and long-term future. If funds generated from operations, including dividends from subsidiaries, are insufficient to meet fixed charges in any period, AFC would be required to generate cash through borrowings, sales of securities or other assets, or similar transactions.
In the past, funds have been borrowed under bank facilities and used for working capital, capital infusions into subsidiaries, and to retire other issues of short-term or high- rate debt and preferred stock. Also, AFC believes it may be prudent and advisable to utilize portions of the bank debt in the normal course over the next year or two.
In 1996 and 1997, wholly-owned trust subsidiaries of AAG sold preferred securities for cash proceeds totaling $225 million. Proceeds were used to retire outstanding debt and AAG preferred stock and for general corporate purposes, including a capital contribution to a subsidiary.
Payments of dividends by AFC's insurance subsidiaries are subject to various laws and regulations which limit the amount of dividends that can be paid without regulatory approval. Under Ohio law, the maximum amount of dividends which may be paid without (i) prior approval or (ii) expiration of a 30 day waiting period without disapproval is the greater of statutory net income or 10% of policyholders' surplus as of the preceding December 31, but only to the extent of earned surplus as of the preceding December 31. The maximum amount of dividends payable (without prior approval) to AFC in 1998 from its insurance subsidiaries is approximately $221 million.
Beginning with the 1997 federal tax return, American Premier will join AFC's consolidated return. Under tax allocation agreements with AFC, its 80%-owned U.S. subsidiaries generally compute tax provisions as if filing separate returns based on book taxable income computed in accordance with generally accepted accounting principles. The resulting provision (or credit) is currently payable to (or receivable from) AFC.
AFC's subsidiaries are parties in a number of proceedings relating to former operations. See Note O to the financial statements.
other internal and external resources or (ii) replacing programs with new software that is Year 2000 compliant. AFC's goal is to have program modifications and new software installations substantially completed by the end of 1998. A significant portion of AFC's Year 2000 project will be completed using internal staff. Incremental Year 2000 costs are not expected to have a material effect on AFC's financial statements.
Projected Year 2000 costs and completion dates are based on management's best estimate. However, there can be no assurance that these estimates will be achieved. Factors such as the availability of trained personnel could affect the successful completion of the project. Should software modifications and new software installation not be completed on a timely basis, the resulting disruptions could have a material adverse impact on operations.
AFC's operations could also be affected by the inability of third parties such as agents and vendors to successfully become Year 2000 compliant. In addition, AFC's property and casualty insurance operations are reviewing policy forms and amendatory endorsements and examining coverage issues for Year 2000 exposures. Management believes that these issues will not have a material impact on AFC's financial statements.
Pretax earnings before extraordinary items were $334 million in 1997, $340 million in 1996 and $252 million in 1995.
Results for 1997 include $91 million in pretax gains primarily on the sales of affiliates and other securities, and reflect declines of $41 million in underwriting results in AFC's property and casualty insurance business.
NSA Group The NSA Group's 10% increase in net written premiums during 1997 is due primarily to volume increases in California resulting from enactment of legislation which requires drivers to provide proof of insurance in order to obtain a valid permit. During 1995 and early 1996, the NSA Group implemented premium rate increased in various states. In 1996, the higher rate levels along with competitive pressures in the nonstandard automobile insurance industry resulted in an 11% decline in net written premiums. These rate increases contributed to the improvement in combined ratio in 1997 and 1996.
Specialty Operations Net written premiums for the specialty operations increased 11% in 1997 due primarily to premiums recorded by a newly acquired aviation division and the return of premiums in 1996 related to the withdrawal from a voluntary pool. The specialty operations had profitable underwriting results for 1997 despite a significant decline in the results of AFC's California workers' compensation business relating to (i) deteriorating underwriting margins on business written in 1996 and 1997 and (ii) reserve reductions in 1996 primarily for business written prior to 1995 in response to fundamental changes in the California workers' compensation market and actuarial evaluations. The specialty lines combined ratio was unusually low in 1996 due primarily to the reallocation of $40 million in reserves to A&E reserves (a combined ratio impact of 4.1 percentage points) and the 1996 reductions in California workers' compensation reserves mentioned above.
1997 compared to 1996 Investment income increased $23.4 million (3%) from 1996 due primarily to an increase in the average amount of investments held partially offset by lower interest rates available in the marketplace.
1996 compared to 1995 AFC's equity in net earnings of investee corporations decreased $32 million in 1996 compared to 1995. Chiquita reported a decrease in earnings attributable to common shareholders of $63 million in 1996 due primarily to the pretax writedowns and costs of $70 million mentioned above. Earnings attributable to common shareholders for 1995 were $946,000 and included a pretax gain of $19 million primarily resulting from divestitures of operations and other actions taken as part of the company's ongoing program to improve shareholder value. These divestitures and other actions included sales of older ships, the sale of Chiquita's Costa Rican edible oils operations, the shut-down of a portion of Chiquita's juice operations and the reconfiguration of banana production assets.
Gains on Sales of Investees The gain on sale of investee in 1997 represents a pretax gain to AFC as a result of Chiquita's public issuance of 4.6 million shares of its common stock. The gain on sale of investee in 1996 represents a pretax gain, before $6.5 million of minority interest, on the sale of Citicasters common stock.
The gains on sales of subsidiaries in 1996 include a pretax gain of $33.9 million on the sale of Buckeye Management Company and the settlement of litigation related to a subsidiary sold in 1993.
Other Income Other income increased $18.0 million (13%) in 1997 compared to 1996 due primarily to income of $46.3 million from the sale of development rights in New York City (including $32.5 million on rights sold to AFG), partially offset by the absence of revenues from a non-insurance subsidiary which was sold in the first quarter of 1997.
Fixed annuity receipts totaled approximately $490 million in 1997, $570 million in 1996 and $460 million in 1995. Annuity receipts increased each year from 1993 through 1996 due primarily to sales of newly introduced single premium products and, in 1995, the development of new distribution channels. Annuity receipts in 1997 reflect the decrease of business written by a single agency from $99 million in 1996 to $23 million in 1997. AAG is no longer writing business through this agency.
Minority Interest Expense Minority interest expense represents the interests of AFG (parent) and non-controlling shareholders of AFC subsidiaries in the earnings of those subsidiaries as well as accrued distributions on trust preferred securities. Minority interest expense for 1996 includes $6.5 million related to the sale of Citicasters shares held by AFEI.
Income Taxes See Note M to the Financial Statements for an analysis of items affecting AFC's effective tax rate.
New Accounting Standards to be Implemented During 1997, the Financial Accounting Standards Board issued the following Statement of Financial Accounting Standards ("SFAS"); the implementation of these standards will not have a significant effect on AFC's financial position or results of operations.
SFAS # Subject of Standard Period to be Implemented 130 Comprehensive Income 1st quarter of 1998 131 Segment Information 4th quarter of 1998
The information required by the following Items will be included in AFC's definitive Proxy Statement for the 1998 Annual Meeting of Shareholders which will be filed with the Securities and Exchange Commission within 120 days after the end of Registrant's fiscal year and is incorporated herein by reference.
AMERICAN FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF EARNINGS (In Thousands)
Year ended December 31, 1997 1996 1995 Income: Property and casualty insurance premiums $2,824,381 $2,844,512 $2,648,703 Life, accident and health premiums 121,506 103,552 15,691 Investment income 868,689 845,330 749,510 Equity in net earnings (losses) of investees (5,564) (16,955) 15,237 Realized gains (losses) on sales of securities 46,006 (3,470) 84,028 Gains on sales of investees 11,428 169,138 335 Gains on sales of subsidiaries 33,602 36,837 - Other income 152,854 134,904 114,602 4,052,902 4,113,848 3,628,106
Costs and Expenses: Property and casualty insurance: Losses and loss adjustment expenses 2,075,616 2,131,421 1,977,395 Commissions and other underwriting expenses 790,324 793,800 707,340 Annuity benefits 278,829 271,821 254,650 Life, accident and health benefits 110,082 92,315 13,202 Interest charges on borrowed money 87,155 86,148 122,568 Minority interest expense 45,477 54,748 28,165 Other operating and general expenses 331,655 344,052 272,888 3,719,138 3,774,305 3,376,208 Earnings before income taxes and extraordinary items 333,764 339,543 251,898 Provision for income taxes 125,227 89,658 56,447
AMERICAN FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (In Thousands)
AFC's voting ownership of subsidiaries and significant affiliates at December 31, was as follows: 1997 1996 1995 American Annuity Group, Inc. ("AAG") 81% 81% 81% American Financial Enterprises, Inc. ("AFEI") 80% 83% 83% American Premier Underwriters, Inc. 81% 81% - Chiquita Brands International, Inc. 39% 43% 44% Citicasters Inc. - (a) 38%
Reinsurance In the normal course of business, AFC's insurance subsidiaries cede reinsurance to other companies to diversify risk and limit maximum loss arising from large claims. To the extent that any reinsuring companies are unable to meet obligations under the agreements covering reinsurance ceded, AFC's insurance subsidiaries would remain liable. Amounts recoverable from reinsurers are estimated in a manner consistent with the claim liability associated with the reinsurance policies. AFC's insurance subsidiaries report as assets (a) the estimated reinsurance recoverable on unpaid losses, including an estimate for losses incurred but not reported, and (b) amounts paid to reinsurers applicable to the unexpired terms of policies in force. AFC's insurance subsidiaries also assume reinsurance from other companies. Income on reinsurance assumed is recognized based on reports received from ceding reinsurers.
Annuity Benefits Accumulated Annuity receipts and benefit payments are recorded as increases or decreases in "annuity benefits accumulated" rather than as revenue and expense. Increases in this liability for interest credited are charged to expense and decreases for surrender charges are credited to other income.
AFC and many of its subsidiaries provide health care and life insurance benefits to eligible retirees. AFC also provides postemployment benefits to former or inactive employees (primarily those on disability) who were not deemed retired under other company plans. The projected future cost of providing these benefits is expensed over the period the employees earn such benefits.
Issuances of Stock by Subsidiaries and Investees Changes in AFC's equity in a subsidiary or an investee caused by issuances of the subsidiary's or investee's stock are accounted for as gains or losses where such issuance is not a part of a broader reorganization.
Fair Value of Financial Instruments Methods and assumptions used in estimating fair values are described in Note R to the financial statements. These fair values represent point-in- time estimates of value that might not be particularly relevant in predicting AFC's future earnings or cash flows.
Millennium Dynamics, Inc. In December 1997, AFC completed the sale of the assets of its software solutions and consulting services subsidiary, Millennium Dynamics, Inc. ("MDI"), to a subsidiary of Peritus Software Services, Inc. for $30 million in cash and 2,175,000 shares of Peritus common stock. AFC recognized a pretax gain of approximately $50 million on the sale.
Citicasters In September 1996, AFC sold its investment in Citicasters to Jacor Communications for approximately $220 million in cash plus warrants to purchase Jacor common stock. AFC realized a pretax gain of approximately $169 million, before minority interest of $6.5 million, on the sale.
The Financial Accounting Standards Board issued SFAS No. 131, "Disclosures about Segments of an Enterprise and Related Information", which is scheduled to become effective during the fourth quarter of 1998. The implementation of SFAS No. 131 is not expected to have a material effect on the segments currently disclosed by AFC.
Subsidiaries: AAG notes payable under bank lines $107,000 $ 44,700 AAG 11-1/8% Senior Subordinated Notes due February 2003 24,080 24,080 AAG 9-1/2% Senior Notes - 40,845 Notes payable secured by real estate 49,525 52,543 Other 13,479 16,247
J. Minority Interest Minority interest in AFC's balance sheet is comprised of the following (in thousands):
L. Common Stock At December 31, 1997, American Financial Group owned all of the outstanding shares of AFC's Common Stock. The number of shares of AFC Common Stock outstanding were reduced from 45,000,000 to 10,593,000 in connection with the retirement of Series F and G Preferred Stock in December 1997.
1997 1996 1995 Earnings before income taxes and extraordinary items $333,764 $339,543 $251,898 Extraordinary items before income taxes (11,201) (34,892) 1,551
Income taxes at statutory rate $112,897 $106,628 $ 88,707 Effect of: Minority interest 10,168 18,507 9,533 Losses utilized (3,164) (43,789) (40,292) Amortization of intangibles 3,362 3,065 3,015 Foreign income taxes 2,954 3,474 359 State income taxes (2,739) 4,140 81 Dividends received deduction (2,002) (7,450) (7,823) Tax exempt interest (384) (597) (897) Other 81 (1,323) 3,483 Total provision 121,173 82,655 56,166 Amounts applicable to extraordinary items 4,054 7,003 281 Provision for income taxes as shown on the Statement of Earnings $125,227 $ 89,658 $ 56,447
For income tax purposes, certain members of the AFC consolidated tax group had the following carryforwards available at Decem ber 31, 1997 (in millions):
Cash payments for income taxes, net of refunds, were $43.7 million, $40.2 million and $14.8 million for 1997, 1996 and 1995, respectively.
O. Commitments and Contingencies Loss accruals have been recorded for various environmental and occupational injury and disease claims and other contingencies arising out of the railroad operations disposed of by American Premier's predecessor, Penn Central Transportation Company ("PCTC"), prior to its bankruptcy reorganization in 1978. Any ultimate liability arising therefrom in excess of previously established loss accruals would normally be attributable to pre-reorganization events and circumstances and accounted for as a reduction in capital surplus. However, under purchase accounting in connection with the Mergers, any such excess liability will be charged to earnings in AFC's financial statements.
During the past two years, AFC has continued a strategy of disposing of non-core investments. Sales of significant affiliates have included the following: MDI (December 1997); Citicasters (September 1996); and Buckeye (March 1996). See Note C for a more detailed description of these and other transactions. Sales of subsidiaries in 1997 also includes a fourth quarter pretax charge of $17 million relating to operations expected to be sold or otherwise disposed of in 1998. Realized gains (losses) on sales of securities and affiliates amounted to (in millions):
1997 1996 Carrying Fair Carrying Fair Value Value Value Value Assets: Bonds and redeemable preferred stocks $10,653 $10,735 $ 9,986 $10,023 Other stocks 446 446 328 328 Investment in investee corporations 201 391 200 306
Benefit Plans AFC expensed approximately $21 million in 1997, $17 million in 1996 and $16 million in 1995 for contributions to its retirement and employee savings plans.
s/Carl H. Lindner Chairman of the Board March 26, 1998 Carl H. Lindner of Directors
Consolidated Statement of Changes in Shareholders' Equity: Years ended December 31, 1997, 1996 and 1995
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of American Financial Corporation and subsidiaries at December 31, 1997 and 1996, and the consolidated results of their operations and their cash flows for each of the three years in the period ended December 31, 1997, in conformity with generally accepted accounting principles. Also, in our opinion, the related financial statement schedules, when considered in relation to the basic financial statements taken as a whole, present fairly in all material respects the information set forth therein.
December 31, 1997 1996 Assets: Cash and short-term investments $ 231,227 $ 404,831 Investments: Bonds and redeemable preferred stocks: Held to maturity - at amortized cost (market - $3,202,300 and $3,528,100) 3,120,106 3,491,126 Available for sale - at market (amortized cost - $7,225,736 and $6,362,597) 7,532,836 6,494,597 Other stocks - principally at market (cost - $153,322 and $142,364) 446,222 327,664 Investment in investee corporations 200,714 199,651 Loans receivable 512,608 568,055 Real estate and other investments 215,472 205,021 Total investments 12,027,958 11,286,114
Liabilities and Shareholders' Equity: Unpaid losses and loss adjustment expenses $ 4,225,336 $ 4,123,701 Unearned premiums 1,328,910 1,247,806 Annuity benefits accumulated 5,528,111 5,365,612 Life, accident and health reserves 709,899 575,380 Payable to American Financial Group, Inc. 352,766 422,015 Other long-term debt: Holding companies 286,661 339,504 Subsidiaries 194,084 178,415 Liabilities related to separate accounts 300,491 247,579 Accounts payable, accrued expenses and other liabilities 908,622 915,398 Total liabilities 13,834,880 13,415,410
Extraordinary items - gain (loss) on prepayment of debt (7,147) (27,889) 1,832
AMERICAN FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS (In Thousands)
A. Mergers J. Minority Interest B. Accounting Policies K. Preferred Stock C. Acquisitions and Sales of Subsidiaries L. Common Stock and Investees M. Income Taxes D. Segments of Operations N. Extraordinary Items E. Investments O. Commitments and Contingencies F. Investment in Investee Corporations P. Quarterly Operating Results G. Cost in Excess of Net Assets Acquired Q. Insurance H. Payable to American Financial Group R. Additional Information I. Other Long-Term Debt
A. Mergers On April 3, 1995, American Financial Corporation ("AFC") merged with a newly formed subsidiary of American Financial Group, Inc. ("AFG"), a new company formed to own 100% of the common stock of both AFC and American Premier Underwriters, Inc. ("American Premier" or "APU"). In the transaction, Carl H. Lindner and members of his family, who owned 100% of the Common Stock of AFC, exchanged their AFC Common Stock for approximately 55% of American Financial Group voting common stock. Former shareholders of American Premier, including AFC and its subsidiaries, received shares of American Financial Group stock on a one-for-one basis. No gain or loss was recorded on the exchange of shares.
At the close of business on December 31, 1996, AFG contributed to AFC 81% of the common stock of American Premier. Since AFC and American Premier are under the common control of AFG, the acquisition of American Premier has been recorded by AFC at AFG's historical cost in a manner similar to a pooling of interests. Accordingly, the historical consolidated financial statements of AFC for periods subsequent to the April 3, 1995 Mergers have been restated to include the accounts of American Premier.
Basis of Presentation The consolidated financial statements include the accounts of AFC and its subsidiaries. Mergers and changes in ownership levels of subsidiaries and affiliates have resulted in certain differences in the financial statements and have affected comparability between years. Certain reclassifications have been made to prior years to conform to the current year's presentation. All significant intercompany balances and transactions have been eliminated. With the exception of the acquisition of American Premier, all acquisitions have been treated as purchases and the results of operations of companies since their formation or acquisition are included in the consolidated financial statements.
Investments Debt securities are classified as "held to maturity" and reported at amortized cost if AFC has the positive intent and ability to hold them to maturity. Debt and equity securities are classified as "available for sale" and reported at fair value with unrealized gains and losses reported as a separate component of shareholders' equity if the securities are not classified as held to maturity or bought and held principally for selling in the near term. Only in certain limited circumstances, such as significant issuer credit deterioration or if required by insurance or other regulators, may a company change its intent to hold a certain security to maturity without calling into question its intent to hold other debt securities to maturity in the future.
Cost in Excess of Net Assets Acquired The excess of cost of subsidiaries and investees over AFC's equity in the underlying net assets ("goodwill") is being amortized over 40 years.
Premium Recognition Property and casualty premiums are earned over the terms of the policies on a pro rata basis. Unearned premiums represent that portion of premiums written which is applicable to the unexpired terms of policies in force. On reinsurance assumed from other insurance companies or written through various underwriting organizations, unearned premiums are based on reports received from such companies and organizations. For traditional life, accident and health products, premiums are recognized as revenue when legally collectible from policyholders. For interest- sensitive life and universal life products, premiums are recorded in a policyholder account which is reflected as a liability. Revenue is recognized as amounts are assessed against the policyholder account for mortality coverage and contract expenses.
Minority Interest For balance sheet purposes, minority interest represents the interests of non-controlling shareholders in AFC subsidiaries, including preferred securities issued by trust subsidiaries of AAG, and AFG's direct ownership interest in American Premier and AFEI. For income statement purposes, minority interest expense represents those shareholders' interest in the earnings of AFC subsidiaries as well as accrued distributions on the trust preferred securities.
The following tables (in thousands) show AFC's assets, revenues and operating profit (loss) by significant business segment. Capital expenditures, depreciation and amortization are not significant. Operating profit (loss) represents total revenues less operating expenses. Goodwill and its amortization have been allocated to the various segments to which they apply. General corporate assets and expenses have not been identified or allocated by segment.
1997 1996 1995 Assets Property and casualty insurance (a) $ 7,517,856 $ 7,116,088 $ 7,443,115 Annuities and life 7,693,463 7,009,127 6,600,377 Other 325,949 674,297 501,417 15,537,268 14,799,512 14,544,909 Investment in investees 200,714 199,651 306,545
$15,737,982 $14,999,163 $14,851,454 Revenues (b) Property and casualty insurance: Premiums earned: Nonstandard automobile $ 1,205,200 $ 1,183,098 $ 954,210 Specialty lines 1,055,935 976,150 995,528 Commercial and personal lines 563,217 684,776 697,512 Other lines 29 488 1,453 2,824,381 2,844,512 2,648,703 Investment and other income 448,849 500,897 465,998 3,273,230 3,345,409 3,114,701 Annuities and life (c) 638,348 585,079 444,082 Other 146,888 200,315 54,086 4,058,466 4,130,803 3,612,869 Equity in net earnings (losses) of investees (5,564) (16,955) 15,237
Held to Maturity Amortized Market Gross Unrealized Cost Value Gains Losses Bonds and redeemable preferred stocks: United States Government and government agencies and authorities $ - $ - $ - $ - States, municipalities and political subdivisions 80.0 79.9 1.1 (1.2) Foreign government 8.5 9.0 .5 - Public utilities 501.4 501.4 6.4 (6.4) Mortgage-backed securities 935.9 949.0 18.8 (5.7) All other corporate 1,965.3 1,988.8 34.8 (11.3) Redeemable preferred stocks - - - -
Realized 77,963 6,065 (13,915) 70,113 Change in Unrealized 810,690 43,700 (288,001) 566,389
Securities classified as "held to maturity" having an amortized cost of $8.2 million, $9.5 million and $14.7 million were sold for a loss of $170,000, $159,000 and $1.8 million in 1997, 1996 and 1995, respectively, due to significant deterioration in the issuers' creditworthiness.
F. Investment in Investee Corporations All of the companies named in the following table have been subject to the rules and regulations of the SEC. The market value of AFC's investment in Chiquita was $391 million and $306 million at December 31, 1997 and 1996, respectively. AFC's investment (and common stock ownership percentage) and equity in net earnings and losses of investees are stated below (dollars in thousands):
Chiquita is a leading international marketer, producer and distributor of bananas and other quality fresh and processed food products. Summarized financial information for Chiquita at December 31, is shown below (in millions): 1997 1996 1995
Current Assets $ 783 $ 844 Non-current Assets 1,618 1,623 Current Liabilities 483 464 Non-current Liabilities 1,138 1,279 Shareholders' Equity 780 724
H. Payable to American Financial Group Following the Mergers, American Premier agreed to lend up to $675 million to AFC under a line of credit. Borrowings under the credit line bore interest at 11-5/8%. On December 27, 1996, American Premier paid a dividend to AFG which consisted of the $675 million note receivable plus accrued interest. Subsequently, AFG contributed $450 million of the note to AFC.
Also subsequent to the Mergers, American Premier entered into a credit agreement with AFG under which American Premier and AFG made loans of up to $250 million available to each other. The balance outstanding under the credit line bore interest at a variable rate of one percent over LIBOR.
Cash interest payments of $98 million, $83 million and $137 million were made on long-term borrowings in 1997, 1996 and 1995, respectively.
1997 1996 1995 Current taxes (credits): Federal $ 27,875 $ 22,450 $ 38,512 Foreign - (1,735) (1,213) State (2,544) 6,369 124 Deferred taxes: Federal 96,301 55,250 18,191 Foreign (459) 321 552
Expiring Amount { 1998 - 2002 $ 35 Operating Loss{ 2003 - 2007 95 { 2008 - 2012 60 Capital Loss 1999 91 Other - Tax Credits 23
N. Extraordinary Items Extraordinary items represent AFC's proportionate share of gains and losses related to debt retirements by the following companies. Amounts shown are net of minority interest and income tax benefits (in thousands): 1997 1996 1995 Holding Companies: AFC (parent) ($5,395) ($ 9,672) ($1,713) APU (parent) (502) (2,636) 7,102 GAHC - - (611) Subsidiaries: AAG (1,250) (7,159) (201) Other - 57 - Investee: Chiquita - (8,479) (2,745)
Revenues $1,030.2 $1,032.8 $1,163.5 $ 887.3 $4,113.8 Earnings (loss) before extraordinary items 78.6 58.5 119.2 (6.4) 249.9 Extraordinary items (7.4) (10.0) (8.3) (2.2) (27.9) Net earnings (loss) 71.2 48.5 110.9 (8.6) 222.0
1997 $ 2.5 $4.2 $ 29.7 $54.6 $ 91.0 1996 52.6 5.7 172.5 (28.3) 202.5
AMERICAN FINANCIAL CORPORATION - PARENT ONLY SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (In Thousands) _____________________________________________________________________
$2,581,920 $2,278,681 Liabilities and Capital: Accounts payable, accrued expenses and other liabilities $ 95,513 $ 37,156 Payable to affiliates 1,004,865 791,821 Long-term debt 88,059 172,809 Shareholders' equity 1,393,483 1,276,895
Cash and short-term investments at beginning of period 46,493 5,098 4,896