2016 Q4 Form 10-Q Financial Statement

#000122460816000088 Filed on November 07, 2016

View on sec.gov

Income Statement

Concept 2016 Q4 2016 Q3 2015 Q3
Revenue $1.005B $1.016B $904.5M
YoY Change 3.64% 12.32% -6.46%
Cost Of Revenue $609.8M $582.1M
YoY Change 4.76% 2.94%
Gross Profit $406.1M $322.4M
YoY Change 25.96% -19.7%
Gross Profit Margin 39.97% 35.64%
Selling, General & Admin
YoY Change
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization
YoY Change
% of Gross Profit
Operating Expenses $793.8M $937.2M $828.2M
YoY Change 1.11% 13.16% 4.74%
Operating Profit -$531.1M -$505.8M
YoY Change 5.0% 29.96%
Interest Expense -$30.40M $29.40M $23.90M
YoY Change 25.62% 23.01% 9.13%
% of Operating Profit
Other Income/Expense, Net
YoY Change
Pretax Income $180.7M $49.30M $52.40M
YoY Change 12.73% -5.92% -66.06%
Income Tax -$53.50M $30.70M $18.60M
% Of Pretax Income -29.61% 62.27% 35.5%
Net Earnings $234.2M $18.60M $33.80M
YoY Change 70.58% -44.97% -71.21%
Net Earnings / Revenue 23.31% 1.83% 3.74%
Basic Earnings Per Share $1.35 $0.11 $0.18
Diluted Earnings Per Share $1.34 $0.11 $0.18
COMMON SHARES
Basic Shares Outstanding 173.5M shares 174.2M shares 190.3M shares
Diluted Shares Outstanding 175.7M shares 192.4M shares

Balance Sheet

Concept 2016 Q4 2016 Q3 2015 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments
YoY Change
Cash & Equivalents $668.2M $706.0M $613.8M
Short-Term Investments
Other Short-Term Assets
YoY Change
Inventory
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets
YoY Change
LONG-TERM ASSETS
Property, Plant & Equipment
YoY Change
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments $26.24B $26.72B $24.55B
YoY Change 7.15% 8.87% -0.56%
Other Assets $790.0M $607.0M $862.0M
YoY Change -12.12% -29.58% 17.92%
Total Long-Term Assets
YoY Change
TOTAL ASSETS
Total Short-Term Assets
Total Long-Term Assets
Total Assets $31.98B $32.42B $31.01B
YoY Change 2.73% 4.55% 0.12%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable
YoY Change
Accrued Expenses
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities
YoY Change
LONG-TERM LIABILITIES
Long-Term Debt $4.223B $4.250B $3.911B
YoY Change 2.1% 8.67% 7.8%
Other Long-Term Liabilities $611.0M $730.0M $739.0M
YoY Change -13.7% -1.22% 4.97%
Total Long-Term Liabilities $4.834B $4.980B $4.650B
YoY Change -0.21% 7.1% 7.34%
TOTAL LIABILITIES
Total Short-Term Liabilities
Total Long-Term Liabilities $4.834B $4.980B $4.650B
Total Liabilities $27.49B $27.93B $26.84B
YoY Change 1.86% 4.05% 2.24%
SHAREHOLDERS EQUITY
Retained Earnings $650.7M $430.3M $222.9M
YoY Change 87.47% 93.05% 291.74%
Common Stock $3.214B $3.208B $3.438B
YoY Change -5.16% -6.68% -9.67%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $4.487B $4.494B $4.171B
YoY Change
Total Liabilities & Shareholders Equity $31.98B $32.42B $31.01B
YoY Change 2.73% 4.55% 0.12%

Cashflow Statement

Concept 2016 Q4 2016 Q3 2015 Q3
OPERATING ACTIVITIES
Net Income $234.2M $18.60M $33.80M
YoY Change 70.58% -44.97% -71.21%
Depreciation, Depletion And Amortization
YoY Change
Cash From Operating Activities $178.0M $245.1M $204.9M
YoY Change -16.24% 19.62% 7.28%
INVESTING ACTIVITIES
Capital Expenditures
YoY Change
Acquisitions
YoY Change
Other Investing Activities -$468.8M -$46.50M $50.40M
YoY Change -23.34% -192.26% -150.25%
Cash From Investing Activities -$468.8M -$46.50M $50.40M
YoY Change -23.34% -192.26% -150.25%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 63.70M 70.20M -95.40M
YoY Change -70.71% -173.58% 448.28%
NET CHANGE
Cash From Operating Activities 178.0M 245.1M 204.9M
Cash From Investing Activities -468.8M -46.50M 50.40M
Cash From Financing Activities 63.70M 70.20M -95.40M
Net Change In Cash -227.1M 268.8M 159.9M
YoY Change 25.12% 68.11% 118.14%
FREE CASH FLOW
Cash From Operating Activities $178.0M $245.1M $204.9M
Capital Expenditures
Free Cash Flow
YoY Change

Facts In Submission

Frame Concept Type Concept / XBRL Key Value Unit
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us-gaap Depreciation Depletion And Amortization
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us-gaap Derivative Instruments Not Designated As Hedging Instruments Gain Loss Net
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us-gaap Dividends Common Stock Cash
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us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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us-gaap Effective Income Tax Rate Reconciliation Change In Deferred Tax Assets Valuation Allowance
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us-gaap Effective Income Tax Rate Reconciliation State And Local Income Taxes
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us-gaap Effective Income Tax Rate Reconciliation State And Local Income Taxes
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us-gaap Embedded Derivative Gain Loss On Embedded Derivative Net
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us-gaap Embedded Derivative Gain Loss On Embedded Derivative Net
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us-gaap Fees And Commissions
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11600000 USD
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55400000 USD
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0 USD
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0 USD
us-gaap Gains Losses On Extinguishment Of Debt
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us-gaap Impairment Of Investments
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21600000 USD
CY2016Q3 us-gaap Impairment Of Investments
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us-gaap Impairment Of Investments
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48500000 USD
us-gaap Income Taxes Paid
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us-gaap Other Than Temporary Impairment Losses Investments Portion In Other Comprehensive Income Loss Before Tax Including Portion Attributable To Noncontrolling Interest Availableforsale Securities
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us-gaap Payments For Repurchase Of Common Stock
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us-gaap Policyholder Benefits And Claims Incurred Net
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CY2015Q4 us-gaap Reinsurance Recoverables On Paid Losses
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us-gaap Repayments Of Federal Home Loan Bank Borrowings
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us-gaap Repayments Of Notes Payable
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CY2016Q3 us-gaap Retained Earnings Accumulated Deficit
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CY2015Q3 us-gaap Revenues
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us-gaap Revenues
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CY2016Q3 us-gaap Revenues
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us-gaap Revenues
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us-gaap Shares Paid For Tax Withholding For Share Based Compensation
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us-gaap Stock Repurchased And Retired During Period Value
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CY2015Q3 us-gaap Stockholders Equity
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4171000000 USD
CY2015Q4 us-gaap Stockholders Equity
StockholdersEquity
4138500000 USD
CY2016Q3 us-gaap Stockholders Equity
StockholdersEquity
4493800000 USD
us-gaap Tax Adjustments Settlements And Unusual Provisions
TaxAdjustmentsSettlementsAndUnusualProvisions
8300000 USD
CY2015Q4 us-gaap Trading Securities
TradingSecurities
262100000 USD
CY2016Q3 us-gaap Trading Securities
TradingSecurities
307200000 USD
CY2015Q4 us-gaap Unearned Premiums
UnearnedPremiums
286300000 USD
CY2016Q3 us-gaap Unearned Premiums
UnearnedPremiums
278200000 USD
CY2015Q4 us-gaap Value Of Business Acquired Voba
ValueOfBusinessAcquiredVOBA
449000000 USD
CY2016Q3 us-gaap Value Of Business Acquired Voba
ValueOfBusinessAcquiredVOBA
407700000 USD
CY2015Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
192365000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
197571000 shares
CY2016Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
175723000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
179373000 shares
CY2015Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
190260000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
195536000 shares
CY2016Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
174247000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
177640000 shares
us-gaap Loss Contingency Disclosures
LossContingencyDisclosures
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">LITIGATION AND OTHER LEGAL PROCEEDINGS</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Legal Proceedings</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company and its subsidiaries are involved in various legal actions in the normal course of business, in which claims for compensatory and punitive damages are asserted, some for substantial amounts.&#160;&#160;We recognize an estimated loss from these loss contingencies when we believe it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Some of the pending matters have been filed as purported class actions and some actions have been filed in certain jurisdictions that permit punitive damage awards that are disproportionate to the actual damages incurred.&#160;&#160;The amounts sought in certain of these actions are often large or indeterminate and the ultimate outcome of certain actions is difficult to predict.&#160;&#160;In the event of an adverse outcome in one or more of these matters, there is a possibility that the ultimate liability may be in excess of the liabilities we have established and could have a material adverse effect on our business, financial condition, results of operations and cash flows.&#160;&#160;In addition, the resolution of pending or future litigation may involve modifications to the terms of outstanding insurance policies or could impact the timing and amount of rate increases, which could adversely affect the future profitability of the related insurance policies.&#160;&#160;Based upon information presently available, and in light of legal, factual and other defenses available to the Company and its subsidiaries, the Company does not believe that it is probable that the ultimate liability from either pending or threatened legal actions, after consideration of existing loss provisions, will have a material adverse effect on the Company's consolidated financial condition, operating results or cash flows. However, given the inherent difficulty in predicting the outcome of legal proceedings, there exists the possibility that such legal actions could have a material adverse effect on the Company's consolidated financial condition, operating results or cash flows.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In addition to the inherent difficulty of predicting litigation outcomes, particularly those that will be decided by a jury, some matters purport to seek substantial or an unspecified amount of damages for unsubstantiated conduct spanning several years based on complex legal theories and damages models. The alleged damages typically are indeterminate or not factually supported in the complaint, and, in any event, the Company's experience indicates that monetary demands for damages often bear little relation to the ultimate loss. In some cases, plaintiffs are seeking to certify classes in the litigation and class certification either has been denied or is pending and we have filed oppositions to class certification or sought to decertify a prior class certification. In addition, for many of these cases: (i) there is uncertainty as to the outcome of pending appeals or motions; (ii) there are significant factual issues to be resolved; and/or (iii) there are novel legal issues presented. Accordingly, the Company cannot reasonably estimate the possible loss or range of loss in excess of amounts accrued, if any, or predict the timing of the eventual resolution of these matters.&#160;&#160;The Company reviews these matters on an ongoing basis.&#160;&#160;When assessing reasonably possible and probable outcomes, the Company bases its assessment on the expected ultimate outcome following all appeals.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:13px;text-align:left;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On September 29, 2016, BCLIC and Washington National commenced an arbitration proceeding seeking compensatory, consequential and punitive damages against BRe based upon BRe&#8217;s incurable material breaches of the long-term care reinsurance agreements, conversion, fraud, and breaches of fiduciary duties and the obligation to deal honestly and in good faith. In addition, on September 29, 2016, a complaint was filed by BCLIC and Washington National in the United States District Court for the Southern District of New York, Bankers Conseco Life Insurance Company and Washington National Insurance Company v. Moshe M. Feuer, Scott Taylor and David Levy, Case No. 16-cv-7646, alleging, among other claims, breach of fiduciary duty, aiding and abetting a breach of fiduciary duty, fraudulent misrepresentation/fraudulent concealment, aiding and abetting a fraud, and violation of the Racketeer Influenced and Corrupt Organizations Act. These allegations relate to the long-term care reinsurance agreements between BRe and BCLIC and Washington National, respectively, and emanate from the undisclosed relationships between and among the defendants (who were the principal owners and officers of BRe) and Platinum Partners, LP ("Platinum") and its affiliates. BCLIC and Washington National intend to vigorously pursue their claims for damages and other remedies in the arbitration and the litigation described above.</font></div><div style="line-height:120%;text-align:left;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Regulatory Examinations and Fines</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Insurance companies face significant risks related to regulatory investigations and actions.&#160;&#160;Regulatory investigations generally result from matters related to sales or underwriting practices, payment of contingent or other sales commissions, claim payments and procedures, product design, product disclosure, additional premium charges for premiums paid on a periodic basis, denial or delay of benefits, charging excessive or impermissible fees on products, procedures related to canceling policies, changing the way cost of insurance charges are calculated for certain life insurance products or recommending unsuitable products to customers.&#160;&#160;We are, in the ordinary course of our business, subject to various examinations, inquiries and information requests from state, federal and other authorities.&#160;&#160;The ultimate outcome of these regulatory actions (including the costs of complying with information requests and policy reviews) cannot be predicted with certainty.&#160;&#160;In the event of an unfavorable outcome in one or more of these matters, the ultimate liability may be in excess of liabilities we have established and we could suffer significant reputational harm as a result of these matters, which could also have a material adverse effect on our business, financial condition, results of operations or cash flows.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In August 2011, we were notified of an examination to be done on behalf of a number of states for the purpose of determining compliance with unclaimed property laws by the Company and its subsidiaries. &#160;Such examination has included inquiries related to the use of data available on the U.S. Social Security Administration's Death Master File to identify instances where benefits under life insurance policies, annuities and retained asset accounts are payable. We are continuing to provide information to the examiners in response to their requests. A total of </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">38</font><font style="font-family:inherit;font-size:10pt;"> states and the District of Columbia are currently participating in this examination.</font></div></div>

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