2012 Form 10-K Financial Statement

#000119312513087664 Filed on March 01, 2013

View on sec.gov

Income Statement

Concept 2012 2011 Q4 2011 Q3
Revenue $1.200B $244.1M $260.4M
YoY Change 18.4% 6.18% 5.17%
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $624.4M $132.2M $129.7M
YoY Change 20.1% 6.7% 5.02%
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $15.37M $17.10M $3.062M
YoY Change 24.06% 4.27% -80.86%
% of Gross Profit
Operating Expenses $895.2M $184.4M $187.7M
YoY Change 20.48% 5.44% 9.9%
Operating Profit
YoY Change
Interest Expense $16.10M -$3.400M $3.565M
YoY Change 13.9% -5.56% -199.03%
% of Operating Profit
Other Income/Expense, Net
YoY Change
Pretax Income $304.8M $59.69M $72.69M
YoY Change 12.68% 14.79% -0.42%
Income Tax $120.8M $23.20M $28.52M
% Of Pretax Income 39.62% 38.87% 39.23%
Net Earnings $184.0M $36.49M $44.17M
YoY Change 12.23% 13.69% -0.29%
Net Earnings / Revenue 15.34% 14.95% 16.96%
Basic Earnings Per Share $1.28 $0.25 $0.31
Diluted Earnings Per Share $1.26 $0.25 $0.30
COMMON SHARES
Basic Shares Outstanding 139.4M shares 138.7M shares
Diluted Shares Outstanding 142.0M shares 140.4M shares

Balance Sheet

Concept 2012 2011 Q4 2011 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $228.0M $293.9M $342.1M
YoY Change -22.42% 4.7% 29.19%
Cash & Equivalents $219.8M $286.3M $334.5M
Short-Term Investments $8.200M $7.600M $7.600M
Other Short-Term Assets $228.8M $23.54M $178.5M
YoY Change 31.57% -85.07% -1.16%
Inventory
Prepaid Expenses
Receivables $302.7M $240.3M $212.1M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $759.5M $708.1M $732.7M
YoY Change 7.26% 8.48% 9.41%
LONG-TERM ASSETS
Property, Plant & Equipment $74.30M $61.36M $59.80M
YoY Change 21.01% 2.78% 0.17%
Goodwill $1.323B
YoY Change 10.77%
Intangibles $496.2M
YoY Change
Long-Term Investments
YoY Change
Other Assets $16.20M $17.87M $17.90M
YoY Change -9.5% 54.08% 46.72%
Total Long-Term Assets $2.369B $1.899B $1.829B
YoY Change 24.74% 8.63% 6.43%
TOTAL ASSETS
Total Short-Term Assets $759.5M $708.1M $732.7M
Total Long-Term Assets $2.369B $1.899B $1.829B
Total Assets $3.128B $2.607B $2.561B
YoY Change 19.99% 8.59% 7.27%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $455.2M $22.38M $350.1M
YoY Change 30.24% -93.51% 0.84%
Accrued Expenses $52.90M $100.9M $90.60M
YoY Change -33.21% 6.29% 3.42%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $100.0K $1.227M $1.227M
YoY Change -91.67% -27.82% -98.79%
Total Short-Term Liabilities $567.8M $481.6M $488.3M
YoY Change 17.9% 2.43% -17.84%
LONG-TERM LIABILITIES
Long-Term Debt $450.0M $250.0M $250.0M
YoY Change 80.0% -0.03% 66.58%
Other Long-Term Liabilities $65.30M $53.34M $38.80M
YoY Change 22.51% 91.88% 24.36%
Total Long-Term Liabilities $515.3M $303.4M $250.0M
YoY Change 69.9% 9.17% 37.91%
TOTAL LIABILITIES
Total Short-Term Liabilities $567.8M $481.6M $488.3M
Total Long-Term Liabilities $515.3M $303.4M $250.0M
Total Liabilities $1.321B $785.0M $944.7M
YoY Change 37.14% -12.24% 4.23%
SHAREHOLDERS EQUITY
Retained Earnings $1.323B
YoY Change
Common Stock $321.4M
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $1.807B $1.644B $1.617B
YoY Change
Total Liabilities & Shareholders Equity $3.128B $2.607B $2.561B
YoY Change 19.99% 8.59% 7.27%

Cashflow Statement

Concept 2012 2011 Q4 2011 Q3
OPERATING ACTIVITIES
Net Income $184.0M $36.49M $44.17M
YoY Change 12.23% 13.69% -0.29%
Depreciation, Depletion And Amortization $15.37M $17.10M $3.062M
YoY Change 24.06% 4.27% -80.86%
Cash From Operating Activities $220.3M $36.30M $77.60M
YoY Change -7.25% -48.07% 30.42%
INVESTING ACTIVITIES
Capital Expenditures $24.03M -$4.100M $2.994M
YoY Change 76.57% 24.24% -236.09%
Acquisitions $425.1M
YoY Change 155.97%
Other Investing Activities -$411.5M -$64.60M -$12.70M
YoY Change 153.86% 68.67% -84.95%
Cash From Investing Activities -$435.5M -$68.70M -$15.70M
YoY Change 147.83% 65.54% -81.91%
FINANCING ACTIVITIES
Cash Dividend Paid $49.53M
YoY Change 6.54%
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net $1.227M
YoY Change -98.8%
Cash From Financing Activities 148.7M -15.80M -6.300M
YoY Change -406.69% 26.4% -26.74%
NET CHANGE
Cash From Operating Activities 220.3M 36.30M 77.60M
Cash From Investing Activities -435.5M -68.70M -15.70M
Cash From Financing Activities 148.7M -15.80M -6.300M
Net Change In Cash -66.48M -48.20M 55.60M
YoY Change -599.09% -403.14% -254.87%
FREE CASH FLOW
Cash From Operating Activities $220.3M $36.30M $77.60M
Capital Expenditures $24.03M -$4.100M $2.994M
Free Cash Flow $196.3M $40.40M $74.61M
YoY Change -12.34% -44.81% 20.92%

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31282000
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1674000
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CY2011 us-gaap Deferred Income Tax Expense Benefit
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CY2011 us-gaap Dividends Cash
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CY2011 us-gaap Net Income Loss Available To Common Stockholders Basic
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30525000
CY2011 bro Average Annual Operating Profit Earned Period Maximum
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3 Y
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CY2011 bro Business Acquisition Earn Out Payables Sub Total
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49921000
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2206000
CY2011 bro Contingency Payments Earn Out Payables
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CY2011 bro Employee Compensation And Benefits
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CY2011 bro Gross Realized Gains On Non Marketable Certificates Of Deposit And Other Securities
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CY2011 bro Share Based Compensation Arrangement By Share Based Payment Award Option Expirations In Period Weighted Average Exercise Price
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CY2012 dei Trading Symbol
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BRO
CY2012 dei Entity Registrant Name
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BROWN & BROWN INC
CY2012 dei Entity Current Reporting Status
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CY2012 dei Amendment Flag
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false
CY2012 dei Entity Filer Category
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CY2012 dei Document Fiscal Period Focus
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CY2012 dei Entity Voluntary Filers
EntityVoluntaryFilers
No
CY2012 dei Document Fiscal Year Focus
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2012
CY2012 dei Document Type
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10-K
CY2012 dei Document Period End Date
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2012-12-31
CY2012 dei Entity Central Index Key
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CY2012 dei Entity Well Known Seasoned Issuer
EntityWellKnownSeasonedIssuer
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CY2012 dei Current Fiscal Year End Date
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325000
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CY2012 us-gaap Use Of Estimates
UseOfEstimates
<div> <p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: Times New Roman" size="2"><b>Use of Estimates</b></font></p> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2">The preparation of Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America (&#x201C;U.S. GAAP&#x201D;) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, as well as disclosures of contingent assets and liabilities, at the date of the Consolidated Financial Statements, and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates.</font></p> </div>
CY2012 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Net Of Tax
OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax
-7000
CY2012 us-gaap Payments Of Dividends
PaymentsOfDividends
49534000
CY2012Q1 us-gaap Operating Expenses
OperatingExpenses
219696000
CY2012Q1 us-gaap Revenues
Revenues
302486000
CY2012Q1 us-gaap Net Income Loss
NetIncomeLoss
49433000
CY2012 us-gaap Interest Expense
InterestExpense
16097000
CY2012 bro Investment Income
InvestmentIncome
797000
CY2012 bro Common Stock Issued To Directors
CommonStockIssuedToDirectors
608000 shares
CY2012 bro Share Based Compensation Arrangement By Share Based Payment Award Options Exercises In Period Weighted Average Exercise Prices
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrices
16.64
CY2012 bro Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Exercises Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisesPrice
CY2012 bro Additions To Estimated Acquisition Earn Out Payables
AdditionsToEstimatedAcquisitionEarnOutPayables
21479000
CY2012 bro Average Annual Operating Profit Earned Period Maximum
AverageAnnualOperatingProfitEarnedPeriodMaximum
3 Y
CY2012 bro Average Annual Operating Profit Earned Period Minimum
AverageAnnualOperatingProfitEarnedPeriodMinimum
1 Y
CY2012 bro Business Acquisition Earn Out Payables Sub Total
BusinessAcquisitionEarnOutPayablesSubTotal
51569000
CY2012 bro Business Combination Pro Forma Information Income Before Income Taxes Of Acquiree Since Acquisition Date Actual
BusinessCombinationProFormaInformationIncomeBeforeIncomeTaxesOfAcquireeSinceAcquisitionDateActual
898000
CY2012 bro Change In Estimated Acquisition Earn Out Payable
ChangeInEstimatedAcquisitionEarnOutPayable
-1418000
CY2012 bro Change In Estimated Acquisition Earn Out Payable Cf
ChangeInEstimatedAcquisitionEarnOutPayableCf
-1418000
CY2012 bro Contingency Payments Earn Out Payables
ContingencyPaymentsEarnOutPayables
1051000
CY2012 bro Contingency Payments Earn Out Payables Total
ContingencyPaymentsEarnOutPayablesTotal
-1418000
CY2012 bro Defined Benefit Plan Contributions By Employer Percentage
DefinedBenefitPlanContributionsByEmployerPercentage
0.025 pure
CY2012 bro Discretionary Profit Sharing Contribution Percentage Of Employee S Salary
DiscretionaryProfitSharingContributionPercentageOfEmployeeSSalary
0.015 pure
CY2012 bro Employee Compensation And Benefits
EmployeeCompensationAndBenefits
608506000
CY2012 bro Gross Realized Gains On Non Marketable Certificates Of Deposit And Other Securities
GrossRealizedGainsOnNonMarketableCertificatesOfDepositAndOtherSecurities
13000
CY2012 bro Gross Realized Losses On Non Marketable Certificates Of Deposit And Other Securities
GrossRealizedLossesOnNonMarketableCertificatesOfDepositAndOtherSecurities
CY2012 bro Increase Decrease In Premium Deposits And Credits Due Customers Decrease Increase
IncreaseDecreaseInPremiumDepositsAndCreditsDueCustomersDecreaseIncrease
2506000
CY2012 bro Increase Decrease In Premiums Commission And Fees Receivable
IncreaseDecreaseInPremiumsCommissionAndFeesReceivable
11312000
CY2012 bro Increase Decrease In Premiums Payable To Insurance Companies
IncreaseDecreaseInPremiumsPayableToInsuranceCompanies
-4651000
CY2012 bro Net Income Attributable To Unvested Awarded Performance Stock
NetIncomeAttributableToUnvestedAwardedPerformanceStock
5313000
CY2012 bro Net Loss Gain On Sales Of Investments Fixed Assets And Customer Accounts
NetLossGainOnSalesOfInvestmentsFixedAssetsAndCustomerAccounts
4105000
CY2012 bro Notes Receivable On Sale Of Fixed Assets And Customer Accounts
NotesReceivableOnSaleOfFixedAssetsAndCustomerAccounts
967000
CY2012 bro Payments For Estimated Acquisition Earn Out Payables
PaymentsForEstimatedAcquisitionEarnOutPayables
17625000
CY2012 bro Payments On Acquisition Earn Outs
PaymentsOnAcquisitionEarnOuts
13539000
CY2012 bro Payments On Acquisition Earn Outs In Excess Of Original Estimated Payables
PaymentsOnAcquisitionEarnOutsInExcessOfOriginalEstimatedPayables
4086000
CY2012 bro Percentage Recognition Fair Value Acquired Assets
PercentageRecognitionFairValueAcquiredAssets
1.00 pure
CY2012 bro Proceeds From Sale Of Non Marketable Certificates Of Deposit And Other Securities
ProceedsFromSaleOfNonMarketableCertificatesOfDepositAndOtherSecurities
10654000
CY2012 bro Recorded Earn Out Payable
RecordedEarnOutPayable
21479000
CY2012 bro Repurchase Of Stock Benefit Plan Shares For Employees To Fund Tax Withholdings
RepurchaseOfStockBenefitPlanSharesForEmployeesToFundTaxWithholdings
8963000
CY2012Q1 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.34
CY2012Q1 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
82790000
CY2012Q1 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.34
CY2012Q2 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.29
CY2012Q2 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
71145000
CY2012Q2 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.30
CY2012 bro Service Period Eligible To Participate For Employee Savings Plan
ServicePeriodEligibleToParticipateForEmployeeSavingsPlan
P30D
CY2012 bro Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Forfeited In Period Awarded Shares
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriodAwardedShares
shares
CY2012 bro Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested In Period Awarded Shares
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodAwardedShares
shares
CY2012 bro Total Deferred Tax Provision
TotalDeferredTaxProvision
32723000
CY2012 bro Share Based Compensation Arrangement By Share Based Payment Award Option Expirations In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionExpirationsInPeriodWeightedAverageExercisePrice
CY2012 bro Restricted Cash And Investments Premiums Commissions And Fees Receivable
RestrictedCashAndInvestmentsPremiumsCommissionsAndFeesReceivable
<div> <p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: Times New Roman" size="2"><b>Restricted Cash and Investments, and Premiums, Commissions and Fees Receivable</b></font></p> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2">In its capacity as an insurance agent or broker, Brown&#xA0;&amp; Brown typically collects premiums from insureds and, after deducting its authorized commissions, remits the net premiums to the appropriate insurance company or companies. Accordingly, as reported in the Consolidated Balance Sheets, &#x201C;premiums&#x201D; are receivable from insureds. Unremitted net insurance premiums are held in a fiduciary capacity until Brown&#xA0;&amp; Brown disburses them. Brown&#xA0;&amp; Brown invests these unremitted funds only in cash, money market accounts, tax-free variable-rate demand bonds and commercial paper held for a short term. In certain states in which Brown&#xA0;&amp; Brown operates, the use and investment alternatives for these funds are regulated and restricted by various state laws and agencies. These restricted funds are reported as restricted cash and investments on the Consolidated Balance Sheets. The interest income earned on these unremitted funds is reported as investment income in the Consolidated Statements of Income.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; FONT-SIZE: 1px"> &#xA0;</p> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2">In other circumstances, the insurance companies collect the premiums directly from the insureds and remit the applicable commissions to Brown&#xA0;&amp; Brown. Accordingly, as reported in the Consolidated Balance Sheets, &#x201C;commissions&#x201D; are receivables from insurance companies. &#x201C;Fees&#x201D; are primarily receivables due from customers.</font></p> </div>
CY2011Q1 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.32
CY2011Q1 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
76670000
CY2011Q1 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.32
CY2011Q1 us-gaap Operating Expenses
OperatingExpenses
185558000
CY2011Q1 us-gaap Revenues
Revenues
262228000
CY2011Q1 us-gaap Net Income Loss
NetIncomeLoss
46293000
CY2011Q2 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.26
CY2011Q2 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
61468000
CY2011Q2 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.26
CY2011Q2 us-gaap Operating Expenses
OperatingExpenses
185348000
CY2011Q2 us-gaap Revenues
Revenues
246816000
CY2011Q2 us-gaap Net Income Loss
NetIncomeLoss
37035000
CY2012Q2 us-gaap Operating Expenses
OperatingExpenses
219771000
CY2012Q2 us-gaap Revenues
Revenues
290916000
CY2012Q2 us-gaap Net Income Loss
NetIncomeLoss
42471000
CY2011Q3 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.30
CY2011Q3 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
72692000
CY2011Q3 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.31
CY2011Q3 us-gaap Operating Expenses
OperatingExpenses
187709000
CY2011Q3 us-gaap Revenues
Revenues
260401000
CY2011Q3 us-gaap Net Income Loss
NetIncomeLoss
44173000
CY2012Q3 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.34
CY2012Q3 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
81649000
CY2012Q3 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.34
CY2012Q3 us-gaap Operating Expenses
OperatingExpenses
222151000
CY2012Q3 us-gaap Revenues
Revenues
303800000
CY2012Q3 us-gaap Net Income Loss
NetIncomeLoss
49504000
CY2011Q4 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.25
CY2011Q4 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
59691000
CY2011Q4 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.25
CY2011Q4 us-gaap Operating Expenses
OperatingExpenses
184406000
CY2011Q4 us-gaap Revenues
Revenues
244097000
CY2011Q4 us-gaap Net Income Loss
NetIncomeLoss
36494000
CY2012Q4 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.29
CY2012Q4 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
69227000
CY2012Q4 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.30
CY2012Q4 us-gaap Operating Expenses
OperatingExpenses
233603000
CY2012Q4 us-gaap Revenues
Revenues
302830000
CY2012Q4 us-gaap Net Income Loss
NetIncomeLoss
42637000

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