2017 Q4 Form 10-K Financial Statement

#000092262118000016 Filed on February 22, 2018

View on sec.gov

Income Statement

Concept 2017 Q4 2017 Q3 2017 Q2
Revenue $401.4M $442.5M $448.6M
YoY Change 5.74% 5.76% 5.82%
Cost Of Revenue $342.8M $361.3M $365.1M
YoY Change
Gross Profit $58.60M $81.20M $83.40M
YoY Change
Gross Profit Margin 14.6% 18.35% 18.59%
Selling, General & Admin
YoY Change
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization
YoY Change
% of Gross Profit
Operating Expenses $342.8M $361.3M $365.1M
YoY Change 6.15% 7.47% 7.98%
Operating Profit -$284.2M $81.24M $83.45M
YoY Change -1.24% -2.69%
Interest Expense $438.0K $377.0K $257.0K
YoY Change 333.66% -91.23% -96.53%
% of Operating Profit 0.46% 0.31%
Other Income/Expense, Net -$700.0K -$415.0K -$407.0K
YoY Change
Pretax Income $64.64M $88.87M $89.24M
YoY Change -7.82% 2.64% -4.22%
Income Tax $22.50M $30.32M $30.71M
% Of Pretax Income 34.81% 34.12% 34.41%
Net Earnings $32.05M $58.54M $58.53M
YoY Change -29.99% 2.03% -4.54%
Net Earnings / Revenue 7.99% 13.23% 13.05%
Basic Earnings Per Share
Diluted Earnings Per Share $549.7K $1.002M $1.119M
COMMON SHARES
Basic Shares Outstanding
Diluted Shares Outstanding

Balance Sheet

Concept 2017 Q4 2017 Q3 2017 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $287.0M $250.0M $217.0M
YoY Change 17.14% 30.21% 26.9%
Cash & Equivalents $215.7M $184.6M $144.7M
Short-Term Investments $71.00M $65.00M $72.00M
Other Short-Term Assets $35.00M $36.00M $36.00M
YoY Change 16.67% 20.0% 5.88%
Inventory
Prepaid Expenses
Receivables $425.0M $435.0M $418.0M
Other Receivables $55.00M $0.00 $0.00
Total Short-Term Assets $801.9M $720.7M $671.1M
YoY Change 20.49% 14.8% 12.28%
LONG-TERM ASSETS
Property, Plant & Equipment $83.00M $75.00M $71.00M
YoY Change 20.29% 29.31% 20.34%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments $45.12M $49.45M $53.23M
YoY Change -22.42% -25.02% -24.98%
Other Assets $28.79M $29.42M $22.36M
YoY Change 43.28% 50.3% 18.33%
Total Long-Term Assets $864.0M $910.8M $896.1M
YoY Change -2.2% 6.24% 9.67%
TOTAL ASSETS
Total Short-Term Assets $801.9M $720.7M $671.1M
Total Long-Term Assets $864.0M $910.8M $896.1M
Total Assets $1.666B $1.631B $1.567B
YoY Change 7.55% 9.86% 10.77%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $105.0M $99.00M $87.00M
YoY Change 19.32% 4.21% -4.4%
Accrued Expenses $123.0M $93.00M $63.00M
YoY Change 6.96% 9.41% 8.62%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $0.00
YoY Change
Total Short-Term Liabilities $509.9M $483.4M $431.0M
YoY Change 8.58% 6.65% 3.74%
LONG-TERM LIABILITIES
Long-Term Debt $74.73M $49.73M $49.74M
YoY Change 201.74%
Other Long-Term Liabilities $1.899M $1.509M $1.004M
YoY Change 1.93% -14.41% 617.14%
Total Long-Term Liabilities $76.63M $51.24M $50.75M
YoY Change 187.76% 2806.58% 36147.14%
TOTAL LIABILITIES
Total Short-Term Liabilities $509.9M $483.4M $431.0M
Total Long-Term Liabilities $76.63M $51.24M $50.75M
Total Liabilities $808.5M $756.3M $714.0M
YoY Change 10.45% 17.06% 19.07%
SHAREHOLDERS EQUITY
Retained Earnings $2.141B $2.122B $2.099B
YoY Change 3.63% 3.16% 3.26%
Common Stock $16.47M $16.47M $16.47M
YoY Change 1.04% 1.04% 1.04%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $857.3M $875.2M $853.2M
YoY Change
Total Liabilities & Shareholders Equity $1.666B $1.631B $1.567B
YoY Change 7.55% 9.86% 10.77%

Cashflow Statement

Concept 2017 Q4 2017 Q3 2017 Q2
OPERATING ACTIVITIES
Net Income $32.05M $58.54M $58.53M
YoY Change -29.99% 2.03% -4.54%
Depreciation, Depletion And Amortization
YoY Change
Cash From Operating Activities $76.80M $80.80M $74.60M
YoY Change -22.19% -23.12% 3.18%
INVESTING ACTIVITIES
Capital Expenditures -$10.90M -$8.000M -$6.400M
YoY Change -26.35% 158.06% 68.42%
Acquisitions
YoY Change
Other Investing Activities -$23.30M $3.600M -$22.50M
YoY Change -8.63% -106.9% 44.23%
Cash From Investing Activities -$34.30M -$4.500M -$28.80M
YoY Change -14.89% -91.86% 47.69%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -11.40M -36.50M -11.40M
YoY Change 23.91% 7.35% -66.47%
NET CHANGE
Cash From Operating Activities 76.80M 80.80M 74.60M
Cash From Investing Activities -34.30M -4.500M -28.80M
Cash From Financing Activities -11.40M -36.50M -11.40M
Net Change In Cash 31.10M 39.80M 34.40M
YoY Change -36.79% 151.9% 82.98%
FREE CASH FLOW
Cash From Operating Activities $76.80M $80.80M $74.60M
Capital Expenditures -$10.90M -$8.000M -$6.400M
Free Cash Flow $87.70M $88.80M $81.00M
YoY Change -22.73% -17.93% 6.44%

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ComprehensiveIncomeNetOfTax
195515000 USD
CY2016 us-gaap Comprehensive Income Net Of Tax
ComprehensiveIncomeNetOfTax
185849000 USD
CY2017 us-gaap Comprehensive Income Net Of Tax
ComprehensiveIncomeNetOfTax
188704000 USD
CY2015 us-gaap Contractually Specified Servicing Fees Late Fees And Ancillary Fees Earned In Exchange For Servicing Financial Assets
ContractuallySpecifiedServicingFeesLateFeesAndAncillaryFeesEarnedInExchangeForServicingFinancialAssets
29997000 USD
CY2016 us-gaap Contractually Specified Servicing Fees Late Fees And Ancillary Fees Earned In Exchange For Servicing Financial Assets
ContractuallySpecifiedServicingFeesLateFeesAndAncillaryFeesEarnedInExchangeForServicingFinancialAssets
29200000 USD
CY2017 us-gaap Contractually Specified Servicing Fees Late Fees And Ancillary Fees Earned In Exchange For Servicing Financial Assets
ContractuallySpecifiedServicingFeesLateFeesAndAncillaryFeesEarnedInExchangeForServicingFinancialAssets
29149000 USD
CY2015 us-gaap Current Income Tax Expense Benefit
CurrentIncomeTaxExpenseBenefit
106155000 USD
CY2016 us-gaap Current Income Tax Expense Benefit
CurrentIncomeTaxExpenseBenefit
109727000 USD
CY2017 us-gaap Current Income Tax Expense Benefit
CurrentIncomeTaxExpenseBenefit
81689000 USD
CY2016Q4 us-gaap Deferred Compensation Liability Classified Noncurrent
DeferredCompensationLiabilityClassifiedNoncurrent
13233000 USD
CY2017Q4 us-gaap Deferred Compensation Liability Classified Noncurrent
DeferredCompensationLiabilityClassifiedNoncurrent
14452000 USD
CY2016Q4 us-gaap Deferred Compensation Liability Current
DeferredCompensationLiabilityCurrent
19675000 USD
CY2017Q4 us-gaap Deferred Compensation Liability Current
DeferredCompensationLiabilityCurrent
15605000 USD
CY2015 us-gaap Deferred Income Tax Expense Benefit
DeferredIncomeTaxExpenseBenefit
-14584000 USD
CY2016 us-gaap Deferred Income Tax Expense Benefit
DeferredIncomeTaxExpenseBenefit
-2000 USD
CY2017 us-gaap Deferred Income Tax Expense Benefit
DeferredIncomeTaxExpenseBenefit
26912000 USD
CY2016Q4 us-gaap Deferred Tax Assets Gross Noncurrent
DeferredTaxAssetsGrossNoncurrent
89223000 USD
CY2017Q4 us-gaap Deferred Tax Assets Gross Noncurrent
DeferredTaxAssetsGrossNoncurrent
40686000 USD
CY2016Q4 us-gaap Deferred Tax Assets Liabilities Net
DeferredTaxAssetsLiabilitiesNet
53889000 USD
CY2017Q4 us-gaap Deferred Tax Assets Liabilities Net
DeferredTaxAssetsLiabilitiesNet
19390000 USD
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DeferredTaxAssetsOther
81000 USD
CY2017Q4 us-gaap Deferred Tax Assets Other
DeferredTaxAssetsOther
812000 USD
CY2016Q4 us-gaap Deferred Tax Assets Tax Deferred Expense Compensation And Benefits Other
DeferredTaxAssetsTaxDeferredExpenseCompensationAndBenefitsOther
19106000 USD
CY2017Q4 us-gaap Deferred Tax Assets Tax Deferred Expense Compensation And Benefits Other
DeferredTaxAssetsTaxDeferredExpenseCompensationAndBenefitsOther
14092000 USD
CY2016Q4 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
0 USD
CY2017Q4 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
0 USD
CY2016Q4 us-gaap Deferred Tax Liabilities Gross Noncurrent
DeferredTaxLiabilitiesGrossNoncurrent
35334000 USD
CY2017Q4 us-gaap Deferred Tax Liabilities Gross Noncurrent
DeferredTaxLiabilitiesGrossNoncurrent
21296000 USD
CY2016Q4 us-gaap Deferred Tax Liabilities Investments
DeferredTaxLiabilitiesInvestments
1657000 USD
CY2017Q4 us-gaap Deferred Tax Liabilities Investments
DeferredTaxLiabilitiesInvestments
856000 USD
CY2016Q4 us-gaap Deferred Tax Liabilities Other
DeferredTaxLiabilitiesOther
1467000 USD
CY2017Q4 us-gaap Deferred Tax Liabilities Other
DeferredTaxLiabilitiesOther
159000 USD
CY2016Q4 us-gaap Deferred Tax Liabilities Prepaid Expenses
DeferredTaxLiabilitiesPrepaidExpenses
8120000 USD
CY2017Q4 us-gaap Deferred Tax Liabilities Prepaid Expenses
DeferredTaxLiabilitiesPrepaidExpenses
5568000 USD
CY2016Q4 us-gaap Deferred Tax Liabilities Property Plant And Equipment
DeferredTaxLiabilitiesPropertyPlantAndEquipment
18493000 USD
CY2017Q4 us-gaap Deferred Tax Liabilities Property Plant And Equipment
DeferredTaxLiabilitiesPropertyPlantAndEquipment
10204000 USD
CY2016Q4 us-gaap Defined Benefit Pension Plan Liabilities Current
DefinedBenefitPensionPlanLiabilitiesCurrent
2288000 USD
CY2017Q4 us-gaap Defined Benefit Pension Plan Liabilities Current
DefinedBenefitPensionPlanLiabilitiesCurrent
236000 USD
CY2016Q4 us-gaap Defined Benefit Pension Plan Liabilities Noncurrent
DefinedBenefitPensionPlanLiabilitiesNoncurrent
221827000 USD
CY2017Q4 us-gaap Defined Benefit Pension Plan Liabilities Noncurrent
DefinedBenefitPensionPlanLiabilitiesNoncurrent
207530000 USD
CY2016Q4 us-gaap Defined Benefit Plan Accumulated Benefit Obligation
DefinedBenefitPlanAccumulatedBenefitObligation
657969000 USD
CY2017Q4 us-gaap Defined Benefit Plan Accumulated Benefit Obligation
DefinedBenefitPlanAccumulatedBenefitObligation
767527000 USD
CY2016Q4 us-gaap Defined Benefit Plan Accumulated Other Comprehensive Income Before Tax
DefinedBenefitPlanAccumulatedOtherComprehensiveIncomeBeforeTax
191301000 USD
CY2017Q4 us-gaap Defined Benefit Plan Accumulated Other Comprehensive Income Before Tax
DefinedBenefitPlanAccumulatedOtherComprehensiveIncomeBeforeTax
201465000 USD
CY2016Q4 us-gaap Defined Benefit Plan Accumulated Other Comprehensive Income Net Gains Losses Before Tax
DefinedBenefitPlanAccumulatedOtherComprehensiveIncomeNetGainsLossesBeforeTax
-185278000 USD
CY2017Q4 us-gaap Defined Benefit Plan Accumulated Other Comprehensive Income Net Gains Losses Before Tax
DefinedBenefitPlanAccumulatedOtherComprehensiveIncomeNetGainsLossesBeforeTax
-191264000 USD
CY2016Q4 us-gaap Defined Benefit Plan Accumulated Other Comprehensive Income Net Prior Service Cost Credit Before Tax
DefinedBenefitPlanAccumulatedOtherComprehensiveIncomeNetPriorServiceCostCreditBeforeTax
6023000 USD
CY2017Q4 us-gaap Defined Benefit Plan Accumulated Other Comprehensive Income Net Prior Service Cost Credit Before Tax
DefinedBenefitPlanAccumulatedOtherComprehensiveIncomeNetPriorServiceCostCreditBeforeTax
10201000 USD
CY2016 us-gaap Defined Benefit Plan Actual Return On Plan Assets
DefinedBenefitPlanActualReturnOnPlanAssets
38028000 USD
CY2017 us-gaap Defined Benefit Plan Actual Return On Plan Assets
DefinedBenefitPlanActualReturnOnPlanAssets
108618000 USD
CY2016 us-gaap Defined Benefit Plan Actuarial Gain Loss
DefinedBenefitPlanActuarialGainLoss
-43032000 USD
CY2017 us-gaap Defined Benefit Plan Actuarial Gain Loss
DefinedBenefitPlanActuarialGainLoss
-82940000 USD
CY2015 us-gaap Defined Benefit Plan Amortization Of Gains Losses
DefinedBenefitPlanAmortizationOfGainsLosses
-14031000 USD
CY2016 us-gaap Defined Benefit Plan Amortization Of Gains Losses
DefinedBenefitPlanAmortizationOfGainsLosses
-8111000 USD
CY2017 us-gaap Defined Benefit Plan Amortization Of Gains Losses
DefinedBenefitPlanAmortizationOfGainsLosses
-9301000 USD
CY2015 us-gaap Defined Benefit Plan Amortization Of Prior Service Cost Credit
DefinedBenefitPlanAmortizationOfPriorServiceCostCredit
670000 USD
CY2016 us-gaap Defined Benefit Plan Amortization Of Prior Service Cost Credit
DefinedBenefitPlanAmortizationOfPriorServiceCostCredit
696000 USD
CY2017 us-gaap Defined Benefit Plan Amortization Of Prior Service Cost Credit
DefinedBenefitPlanAmortizationOfPriorServiceCostCredit
871000 USD
CY2016Q4 us-gaap Defined Benefit Plan Amounts Recognized In Balance Sheet
DefinedBenefitPlanAmountsRecognizedInBalanceSheet
-224115000 USD
CY2017Q4 us-gaap Defined Benefit Plan Amounts Recognized In Balance Sheet
DefinedBenefitPlanAmountsRecognizedInBalanceSheet
-207766000 USD
CY2015Q4 us-gaap Defined Benefit Plan Benefit Obligation
DefinedBenefitPlanBenefitObligation
724580000 USD
CY2016Q4 us-gaap Defined Benefit Plan Benefit Obligation
DefinedBenefitPlanBenefitObligation
816659000 USD
CY2017Q4 us-gaap Defined Benefit Plan Benefit Obligation
DefinedBenefitPlanBenefitObligation
951666000 USD
CY2016 us-gaap Defined Benefit Plan Benefit Obligation Benefits Paid
DefinedBenefitPlanBenefitObligationBenefitsPaid
14393000 USD
CY2017 us-gaap Defined Benefit Plan Benefit Obligation Benefits Paid
DefinedBenefitPlanBenefitObligationBenefitsPaid
16184000 USD
CY2017 us-gaap Defined Benefit Plan Benefit Obligation Period Increase Decrease
DefinedBenefitPlanBenefitObligationPeriodIncreaseDecrease
135000000 USD
CY2016 us-gaap Defined Benefit Plan Contributions By Employer
DefinedBenefitPlanContributionsByEmployer
17418000 USD
CY2017 us-gaap Defined Benefit Plan Contributions By Employer
DefinedBenefitPlanContributionsByEmployer
61102000 USD
CY2017Q4 us-gaap Defined Benefit Plan Expected Amortization Of Gain Loss Next Fiscal Year
DefinedBenefitPlanExpectedAmortizationOfGainLossNextFiscalYear
-12800000 USD
CY2017Q4 us-gaap Defined Benefit Plan Expected Amortization Of Prior Service Cost Credit Next Fiscal Year
DefinedBenefitPlanExpectedAmortizationOfPriorServiceCostCreditNextFiscalYear
1100000 USD
CY2017Q4 us-gaap Defined Benefit Plan Expected Future Benefit Payments Five Fiscal Years Thereafter
DefinedBenefitPlanExpectedFutureBenefitPaymentsFiveFiscalYearsThereafter
210951000 USD
CY2017Q4 us-gaap Defined Benefit Plan Expected Future Benefit Payments Next Twelve Months
DefinedBenefitPlanExpectedFutureBenefitPaymentsNextTwelveMonths
20739000 USD
CY2017Q4 us-gaap Defined Benefit Plan Expected Future Benefit Payments Year Five
DefinedBenefitPlanExpectedFutureBenefitPaymentsYearFive
31650000 USD
CY2017Q4 us-gaap Defined Benefit Plan Expected Future Benefit Payments Year Four
DefinedBenefitPlanExpectedFutureBenefitPaymentsYearFour
28687000 USD
CY2017Q4 us-gaap Defined Benefit Plan Expected Future Benefit Payments Year Three
DefinedBenefitPlanExpectedFutureBenefitPaymentsYearThree
25665000 USD
CY2017Q4 us-gaap Defined Benefit Plan Expected Future Benefit Payments Year Two
DefinedBenefitPlanExpectedFutureBenefitPaymentsYearTwo
23050000 USD
CY2015 us-gaap Defined Benefit Plan Expected Return On Plan Assets
DefinedBenefitPlanExpectedReturnOnPlanAssets
35921000 USD
CY2016 us-gaap Defined Benefit Plan Expected Return On Plan Assets
DefinedBenefitPlanExpectedReturnOnPlanAssets
39520000 USD
CY2017 us-gaap Defined Benefit Plan Expected Return On Plan Assets
DefinedBenefitPlanExpectedReturnOnPlanAssets
41267000 USD
CY2015Q4 us-gaap Defined Benefit Plan Fair Value Of Plan Assets
DefinedBenefitPlanFairValueOfPlanAssets
551491000 USD
CY2016Q4 us-gaap Defined Benefit Plan Fair Value Of Plan Assets
DefinedBenefitPlanFairValueOfPlanAssets
592544000 USD
CY2017Q4 us-gaap Defined Benefit Plan Fair Value Of Plan Assets
DefinedBenefitPlanFairValueOfPlanAssets
743900000 USD
CY2016Q4 us-gaap Defined Benefit Plan Funded Status Of Plan
DefinedBenefitPlanFundedStatusOfPlan
-224115000 USD
CY2017Q4 us-gaap Defined Benefit Plan Funded Status Of Plan
DefinedBenefitPlanFundedStatusOfPlan
-207766000 USD
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DefinedBenefitPlanInterestCost
30755000 USD
CY2016 us-gaap Defined Benefit Plan Interest Cost
DefinedBenefitPlanInterestCost
33125000 USD
CY2017 us-gaap Defined Benefit Plan Interest Cost
DefinedBenefitPlanInterestCost
34275000 USD
CY2015 us-gaap Defined Benefit Plan Net Periodic Benefit Cost
DefinedBenefitPlanNetPeriodicBenefitCost
39968000 USD
CY2016 us-gaap Defined Benefit Plan Net Periodic Benefit Cost
DefinedBenefitPlanNetPeriodicBenefitCost
30613000 USD
CY2017 us-gaap Defined Benefit Plan Net Periodic Benefit Cost
DefinedBenefitPlanNetPeriodicBenefitCost
34588000 USD
CY2016Q4 us-gaap Defined Benefit Plan Pension Plans With Accumulated Benefit Obligations In Excess Of Plan Assets Aggregate Accumulated Benefit Obligation
DefinedBenefitPlanPensionPlansWithAccumulatedBenefitObligationsInExcessOfPlanAssetsAggregateAccumulatedBenefitObligation
657969000 USD
CY2017Q4 us-gaap Defined Benefit Plan Pension Plans With Accumulated Benefit Obligations In Excess Of Plan Assets Aggregate Accumulated Benefit Obligation
DefinedBenefitPlanPensionPlansWithAccumulatedBenefitObligationsInExcessOfPlanAssetsAggregateAccumulatedBenefitObligation
767527000 USD
CY2016Q4 us-gaap Defined Benefit Plan Pension Plans With Accumulated Benefit Obligations In Excess Of Plan Assets Aggregate Fair Value Of Plan Assets
DefinedBenefitPlanPensionPlansWithAccumulatedBenefitObligationsInExcessOfPlanAssetsAggregateFairValueOfPlanAssets
592544000 USD
CY2017Q4 us-gaap Defined Benefit Plan Pension Plans With Accumulated Benefit Obligations In Excess Of Plan Assets Aggregate Fair Value Of Plan Assets
DefinedBenefitPlanPensionPlansWithAccumulatedBenefitObligationsInExcessOfPlanAssetsAggregateFairValueOfPlanAssets
743900000 USD
CY2016Q4 us-gaap Defined Benefit Plan Pension Plans With Accumulated Benefit Obligations In Excess Of Plan Assets Aggregate Projected Benefit Obligation
DefinedBenefitPlanPensionPlansWithAccumulatedBenefitObligationsInExcessOfPlanAssetsAggregateProjectedBenefitObligation
816659000 USD
CY2017Q4 us-gaap Defined Benefit Plan Pension Plans With Accumulated Benefit Obligations In Excess Of Plan Assets Aggregate Projected Benefit Obligation
DefinedBenefitPlanPensionPlansWithAccumulatedBenefitObligationsInExcessOfPlanAssetsAggregateProjectedBenefitObligation
951666000 USD
CY2016 us-gaap Defined Benefit Plan Plan Amendments
DefinedBenefitPlanPlanAmendments
2114000 USD
CY2017 us-gaap Defined Benefit Plan Plan Amendments
DefinedBenefitPlanPlanAmendments
5050000 USD
CY2016 us-gaap Defined Benefit Plan Plan Assets Benefits Paid
DefinedBenefitPlanPlanAssetsBenefitsPaid
14393000 USD
CY2017 us-gaap Defined Benefit Plan Plan Assets Benefits Paid
DefinedBenefitPlanPlanAssetsBenefitsPaid
16184000 USD
CY2017 us-gaap Defined Benefit Plan Recognized Net Gain Loss Due To Settlements1
DefinedBenefitPlanRecognizedNetGainLossDueToSettlements1
-302000 USD
CY2015 us-gaap Defined Benefit Plan Service Cost
DefinedBenefitPlanServiceCost
30433000 USD
CY2016 us-gaap Defined Benefit Plan Service Cost
DefinedBenefitPlanServiceCost
28201000 USD
CY2017 us-gaap Defined Benefit Plan Service Cost
DefinedBenefitPlanServiceCost
31106000 USD
CY2017 us-gaap Defined Benefit Plan Settlements Benefit Obligation
DefinedBenefitPlanSettlementsBenefitObligation
2180000 USD
CY2017 us-gaap Defined Benefit Plan Settlements Plan Assets
DefinedBenefitPlanSettlementsPlanAssets
2180000 USD
CY2015 us-gaap Defined Contribution Plan Cost Recognized
DefinedContributionPlanCostRecognized
11600000 USD
CY2016 us-gaap Defined Contribution Plan Cost Recognized
DefinedContributionPlanCostRecognized
12100000 USD
CY2017 us-gaap Defined Contribution Plan Cost Recognized
DefinedContributionPlanCostRecognized
12800000 USD
CY2015 us-gaap Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
15900000 USD
CY2016 us-gaap Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
15100000 USD
CY2017 us-gaap Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
14800000 USD
CY2016Q4 us-gaap Dividends Payable Current
DividendsPayableCurrent
36441000 USD
CY2017Q4 us-gaap Dividends Payable Current
DividendsPayableCurrent
39116000 USD
CY2017 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate
0.35
CY2015 us-gaap Equity Method Investment Dividends Or Distributions
EquityMethodInvestmentDividendsOrDistributions
14112000 USD
CY2016 us-gaap Equity Method Investment Dividends Or Distributions
EquityMethodInvestmentDividendsOrDistributions
17837000 USD
CY2017 us-gaap Equity Method Investment Dividends Or Distributions
EquityMethodInvestmentDividendsOrDistributions
5128000 USD
CY2016Q4 us-gaap Equity Method Investments
EquityMethodInvestments
58159000 USD
CY2017Q4 us-gaap Equity Method Investments
EquityMethodInvestments
45122000 USD
CY2015 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
266249000 USD
CY2016Q1 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
70224000 USD
CY2016Q2 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
93163000 USD
CY2016Q3 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
86581000 USD
CY2016Q4 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
70123000 USD
CY2016 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
320091000 USD
CY2017Q1 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
72954000 USD
CY2017Q2 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
89235000 USD
CY2017Q3 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
88865000 USD
CY2017Q4 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
64641000 USD
CY2017 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
315695000 USD
CY2015 us-gaap Income Loss From Equity Method Investments
IncomeLossFromEquityMethodInvestments
16983000 USD
CY2016 us-gaap Income Loss From Equity Method Investments
IncomeLossFromEquityMethodInvestments
7025000 USD
CY2017 us-gaap Income Loss From Equity Method Investments
IncomeLossFromEquityMethodInvestments
2801000 USD
CY2015 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
91571000 USD
CY2016 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
109725000 USD
CY2017 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
118696000 USD
CY2017 us-gaap Income Tax Expense Benefit Continuing Operations Adjustment Of Deferred Tax Asset Liability
IncomeTaxExpenseBenefitContinuingOperationsAdjustmentOfDeferredTaxAssetLiability
10095000 USD
CY2017 us-gaap Income Tax Reconciliation Change In Enacted Tax Rate
IncomeTaxReconciliationChangeInEnactedTaxRate
10095000 USD
CY2015 us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate
93187000 USD
CY2016 us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate
112032000 USD
CY2017 us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate
110493000 USD
CY2015 us-gaap Income Tax Reconciliation Other Adjustments
IncomeTaxReconciliationOtherAdjustments
669000 USD
CY2016 us-gaap Income Tax Reconciliation Other Adjustments
IncomeTaxReconciliationOtherAdjustments
-37000 USD
CY2017 us-gaap Income Tax Reconciliation Other Adjustments
IncomeTaxReconciliationOtherAdjustments
386000 USD
CY2015 us-gaap Income Tax Reconciliation Tax Exempt Income
IncomeTaxReconciliationTaxExemptIncome
2285000 USD
CY2016 us-gaap Income Tax Reconciliation Tax Exempt Income
IncomeTaxReconciliationTaxExemptIncome
2270000 USD
CY2017 us-gaap Income Tax Reconciliation Tax Exempt Income
IncomeTaxReconciliationTaxExemptIncome
2278000 USD
CY2015 us-gaap Income Taxes Paid Net
IncomeTaxesPaidNet
106347000 USD
CY2016 us-gaap Income Taxes Paid Net
IncomeTaxesPaidNet
104607000 USD
CY2017 us-gaap Income Taxes Paid Net
IncomeTaxesPaidNet
106250000 USD
CY2016Q4 us-gaap Income Taxes Receivable
IncomeTaxesReceivable
5260000 USD
CY2017 us-gaap Increase Decrease In Accrued Investment Income Receivable
IncreaseDecreaseInAccruedInvestmentIncomeReceivable
516000 USD
CY2016 us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
IncreaseDecreaseInAccountsPayableAndAccruedLiabilities
11144000 USD
CY2017 us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
IncreaseDecreaseInAccountsPayableAndAccruedLiabilities
17183000 USD
CY2015 us-gaap Increase Decrease In Accounts Receivable Related Parties
IncreaseDecreaseInAccountsReceivableRelatedParties
12835000 USD
CY2016 us-gaap Increase Decrease In Accounts Receivable Related Parties
IncreaseDecreaseInAccountsReceivableRelatedParties
30485000 USD
CY2017 us-gaap Increase Decrease In Accounts Receivable Related Parties
IncreaseDecreaseInAccountsReceivableRelatedParties
39788000 USD
CY2015 us-gaap Increase Decrease In Accrued Investment Income Receivable
IncreaseDecreaseInAccruedInvestmentIncomeReceivable
-47000 USD
CY2016 us-gaap Increase Decrease In Accrued Investment Income Receivable
IncreaseDecreaseInAccruedInvestmentIncomeReceivable
846000 USD
CY2017Q4 us-gaap Income Taxes Receivable
IncomeTaxesReceivable
29900000 USD
CY2015 us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
IncreaseDecreaseInAccountsPayableAndAccruedLiabilities
3633000 USD
CY2015 us-gaap Increase Decrease In Due From Related Parties Current
IncreaseDecreaseInDueFromRelatedPartiesCurrent
-7775000 USD
CY2016 us-gaap Increase Decrease In Due From Related Parties Current
IncreaseDecreaseInDueFromRelatedPartiesCurrent
-247000 USD
CY2017 us-gaap Increase Decrease In Due From Related Parties Current
IncreaseDecreaseInDueFromRelatedPartiesCurrent
4720000 USD
CY2015 us-gaap Increase Decrease In Income Taxes Receivable
IncreaseDecreaseInIncomeTaxesReceivable
499000 USD
CY2016 us-gaap Increase Decrease In Income Taxes Receivable
IncreaseDecreaseInIncomeTaxesReceivable
-6687000 USD
CY2015 us-gaap Increase Decrease In Deferred Compensation
IncreaseDecreaseInDeferredCompensation
-1526000 USD
CY2016 us-gaap Increase Decrease In Deferred Compensation
IncreaseDecreaseInDeferredCompensation
-4561000 USD
CY2017 us-gaap Increase Decrease In Deferred Compensation
IncreaseDecreaseInDeferredCompensation
-2681000 USD
CY2017 us-gaap Increase Decrease In Income Taxes Receivable
IncreaseDecreaseInIncomeTaxesReceivable
24640000 USD
CY2015 us-gaap Increase Decrease In Pension Plan Obligations
IncreaseDecreaseInPensionPlanObligations
20307000 USD
CY2016 us-gaap Increase Decrease In Pension Plan Obligations
IncreaseDecreaseInPensionPlanObligations
10524000 USD
CY2017 us-gaap Increase Decrease In Pension Plan Obligations
IncreaseDecreaseInPensionPlanObligations
-27265000 USD
CY2015 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
-1193000 USD
CY2016 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
4674000 USD
CY2017 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
7636000 USD
CY2015 us-gaap Increase Decrease In Reserve For Commissions Expense And Taxes
IncreaseDecreaseInReserveForCommissionsExpenseAndTaxes
-5624000 USD
CY2016 us-gaap Increase Decrease In Reserve For Commissions Expense And Taxes
IncreaseDecreaseInReserveForCommissionsExpenseAndTaxes
-15017000 USD
CY2017 us-gaap Increase Decrease In Reserve For Commissions Expense And Taxes
IncreaseDecreaseInReserveForCommissionsExpenseAndTaxes
-17565000 USD
CY2015 us-gaap Insurance Agency Management Fee
InsuranceAgencyManagementFee
1475511000 USD
CY2016 us-gaap Insurance Agency Management Fee
InsuranceAgencyManagementFee
1567431000 USD
CY2017 us-gaap Insurance Agency Management Fee
InsuranceAgencyManagementFee
1662625000 USD
CY2015 us-gaap Insurance Commissions
InsuranceCommissions
847880000 USD
CY2016 us-gaap Insurance Commissions
InsuranceCommissions
893800000 USD
CY2017 us-gaap Insurance Commissions
InsuranceCommissions
947481000 USD
CY2015 us-gaap Interest And Dividend Income Operating
InterestAndDividendIncomeOperating
18676000 USD
CY2016 us-gaap Interest And Dividend Income Operating
InterestAndDividendIncomeOperating
21737000 USD
CY2017 us-gaap Interest And Dividend Income Operating
InterestAndDividendIncomeOperating
26155000 USD
CY2016Q4 us-gaap Interest Expense
InterestExpense
101000 USD
CY2016 us-gaap Interest Expense
InterestExpense
101000 USD
CY2017Q1 us-gaap Interest Expense
InterestExpense
166000 USD
CY2017Q2 us-gaap Interest Expense
InterestExpense
257000 USD
CY2017Q3 us-gaap Interest Expense
InterestExpense
377000 USD
CY2017Q4 us-gaap Interest Expense
InterestExpense
438000 USD
CY2017 us-gaap Interest Expense
InterestExpense
1238000 USD
CY2017 us-gaap Interest Paid Net
InterestPaidNet
1038000 USD
CY2015 us-gaap Investment Income Investment Expense
InvestmentIncomeInvestmentExpense
885000 USD
CY2016 us-gaap Investment Income Investment Expense
InvestmentIncomeInvestmentExpense
1190000 USD
CY2017 us-gaap Investment Income Investment Expense
InvestmentIncomeInvestmentExpense
1547000 USD
CY2015 us-gaap Investment Income Nonoperating
InvestmentIncomeNonoperating
33708000 USD
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CY2016 us-gaap Investment Income Nonoperating
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CY2017 us-gaap Investment Income Nonoperating
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Contractual commitments to invest in limited partnership investments, consisting of private equity securities, mezzanine debt securities, and real estate activities.
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CY2016 us-gaap Other Comprehensive Income Availableforsale Securities Adjustment Net Of Tax Portion Attributable To Parent
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43000 USD
CY2017 us-gaap Other Comprehensive Income Availableforsale Securities Adjustment Net Of Tax Portion Attributable To Parent
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-190000 USD
CY2017 us-gaap Other Comprehensive Income Defined Benefit Plans Adjustment Before Tax Portion Attributable To Parent
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CY2015 us-gaap Other Comprehensive Income Defined Benefit Plans Adjustment Net Of Tax Portion Attributable To Parent
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24560000 USD
CY2017 us-gaap Other Comprehensive Income Defined Benefit Plans Adjustment Net Of Tax Portion Attributable To Parent
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8105000 USD
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696000 USD
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871000 USD
CY2017 us-gaap Other Comprehensive Income Loss Finalization Of Pension And Non Pension Postretirement Plan Valuation Before Tax
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302000 USD
CY2015 us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
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20837000 USD
CY2016 us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
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CY2017 us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
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CY2016 us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Adjustment Before Tax
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37831000 USD
CY2017 us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Adjustment Before Tax
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10164000 USD
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-8111000 USD
CY2017 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Gain Loss Before Tax
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-9301000 USD
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756000 USD
CY2017Q4 us-gaap Other Postretirement Defined Benefit Plan Liabilities Noncurrent
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423000 USD
CY2015 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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0 USD
CY2016 us-gaap Other Than Temporary Impairment Losses Investments Portion In Other Comprehensive Income Loss Before Tax Including Portion Attributable To Noncontrolling Interest Availableforsale Securities
OtherThanTemporaryImpairmentLossesInvestmentsPortionInOtherComprehensiveIncomeLossBeforeTaxIncludingPortionAttributableToNoncontrollingInterestAvailableforsaleSecurities
0 USD
CY2017 us-gaap Other Than Temporary Impairment Losses Investments Portion In Other Comprehensive Income Loss Before Tax Including Portion Attributable To Noncontrolling Interest Availableforsale Securities
OtherThanTemporaryImpairmentLossesInvestmentsPortionInOtherComprehensiveIncomeLossBeforeTaxIncludingPortionAttributableToNoncontrollingInterestAvailableforsaleSecurities
0 USD
CY2015 us-gaap Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net Availableforsale Securities
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1558000 USD
CY2016 us-gaap Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net Availableforsale Securities
OtherThanTemporaryImpairmentLossesInvestmentsPortionRecognizedInEarningsNetAvailableforsaleSecurities
416000 USD
CY2017 us-gaap Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net Availableforsale Securities
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182000 USD
CY2015 us-gaap Payments For Commissions
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578000 USD
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410000 USD
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194980000 USD
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CY2017 us-gaap Proceeds From Sale Of Available For Sale Securities
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144317000 USD
CY2016 us-gaap Proceeds From Sale Of Trading Securities Heldforinvestment
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5171000 USD
CY2015 us-gaap Realized Gain Loss On Marketable Securities And Cost Method Investments Excluding Other Than Temporary Impairments And Other Investments
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492000 USD
CY2016 us-gaap Realized Gain Loss On Marketable Securities And Cost Method Investments Excluding Other Than Temporary Impairments And Other Investments
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672000 USD
CY2017 us-gaap Realized Gain Loss On Marketable Securities And Cost Method Investments Excluding Other Than Temporary Impairments And Other Investments
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1334000 USD
CY2016Q4 us-gaap Retained Earnings Accumulated Deficit
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2065911000 USD
CY2017Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
2140853000 USD
CY2015 us-gaap Revenues
Revenues
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Revenues
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CY2016Q2 us-gaap Revenues
Revenues
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CY2016Q3 us-gaap Revenues
Revenues
418406000 USD
CY2016Q4 us-gaap Revenues
Revenues
379613000 USD
CY2016 us-gaap Revenues
Revenues
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CY2017Q1 us-gaap Revenues
Revenues
399316000 USD
CY2017Q2 us-gaap Revenues
Revenues
448564000 USD
CY2017Q3 us-gaap Revenues
Revenues
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CY2017Q4 us-gaap Revenues
Revenues
401402000 USD
CY2017 us-gaap Revenues
Revenues
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CY2014Q4 us-gaap Stockholders Equity
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816910000 USD
CY2017Q4 us-gaap Stockholders Equity
StockholdersEquity
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1963000000 USD
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CY2016Q4 us-gaap Treasury Stock Common Shares
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CY2017 us-gaap Unrecognized Tax Benefits Income Tax Penalties And Interest Expense
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100000 USD
CY2017 us-gaap Nature Of Operations
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Note 1.&#160; Nature of Operations</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Erie Indemnity Company ("Indemnity", "we", "us", "our") is a publicly held Pennsylvania business corporation that has since its incorporation in 1925 served as the attorney-in-fact for the subscribers (policyholders) at the Erie Insurance Exchange ("Exchange").&#160; The Exchange, which also commenced business in 1925, is a Pennsylvania-domiciled reciprocal insurer that writes property and casualty insurance. We function solely as the management company and all insurance operations are the responsibility of the Exchange.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Our primary function, as attorney-in-fact, is to perform certain services on behalf of the subscribers at the Exchange relating to policy issuance and renewals including the sales, underwriting, and issuance of policies.&#160; This is done in accordance with a subscriber's agreement (a limited power of attorney) executed individually by each subscriber (policyholder), which appoints us as their common attorney-in-fact to transact certain business on their behalf and to manage the affairs of the Exchange.&#160; Pursuant to the subscriber's agreement and for its services as attorney-in-fact,&#160;we earn a management fee calculated as a percentage of the direct and assumed premiums written by the Exchange.</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%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The services we provide to the subscribers at the Exchange are related to the sales, underwriting and issuance of policies. The sales related services we provide include agent compensation and certain sales and advertising support services. Agent compensation includes scheduled commissions to agents based upon premiums written as well as additional commissions and bonuses to agents, which are earned by achieving targeted measures. Agent compensation comprised approximately </font><font style="font-family:inherit;font-size:10pt;">68%</font><font style="font-family:inherit;font-size:10pt;"> of our </font><font style="font-family:inherit;font-size:10pt;">2017</font><font style="font-family:inherit;font-size:10pt;"> expenses. The underwriting services we provide include underwriting and policy processing and comprised approximately </font><font style="font-family:inherit;font-size:10pt;">10%</font><font style="font-family:inherit;font-size:10pt;"> of our </font><font style="font-family:inherit;font-size:10pt;">2017</font><font style="font-family:inherit;font-size:10pt;"> expenses. The remaining services we provide include customer service and administrative support. We also provide information technology services that support all the functions listed above that comprised approximately </font><font style="font-family:inherit;font-size:10pt;">10%</font><font style="font-family:inherit;font-size:10pt;"> of our </font><font style="font-family:inherit;font-size:10pt;">2017</font><font style="font-family:inherit;font-size:10pt;"> expenses. </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%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">By virtue of its legal structure as a reciprocal insurer, the Exchange does not have the ability to enter into contractual relationships and therefore, Indemnity also serves as the attorney-in-fact on behalf of the Exchange for all claims handling and investment management services, which include certain common overhead and service department functions in accordance with the subscriber's agreement. The Exchange's insurance subsidiaries also utilize Indemnity for these services, including life management services for EFL, in accordance with the service agreements between each of the subsidiaries and Indemnity. Claims handling services include costs incurred in the claims process, including the adjustment, investigation, defense, recording and payment functions, as well as an allocation of costs for departments that support these claims functions. Life management services include costs incurred in the management and processing of life insurance business. Investment management services are related to investment trading activity, accounting and all other functions attributable to the investment of funds, including an allocation of costs for departments that support the investment function. The amounts incurred for these services are the responsibility of the Exchange and its insurance subsidiaries as outlined in the subscriber's agreement and the services agreements, and are reimbursed to Indemnity as cost. State insurance regulations require that intercompany service agreements and any material amendments be approved in advance by the state insurance department. See Note 13, "Related Party" contained within this report. </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%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Our results of operations are tied to the growth and financial condition of the Exchange. If any events occurred that impaired the Exchange's ability to grow or sustain its financial condition, including but not limited to reduced financial strength ratings, disruption in the independent agency relationships, significant catastrophe losses, or products not meeting customer demands, the Exchange could find it more difficult to retain its existing business and attract new business. A decline in the business of the Exchange almost certainly would have as a consequence a decline in the total premiums paid and a correspondingly adverse effect on the amount of the management fees we receive. We also have an exposure to a concentration of credit risk related to the unsecured receivables due from the Exchange and its subsidiaries. See Note 14, "Concentrations of Credit Risk" contained within this report.</font></div></div>
CY2017 us-gaap Revenue Recognition Services Management Fees
RevenueRecognitionServicesManagementFees
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;text-decoration:underline;">Recognition of management fee revenue</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We earn management fees from the Exchange for providing policy issuance and renewal services including certain sales, underwriting, and policy issuance services.&#160; Pursuant to the subscriber's agreements with the subscribers (policyholders) at the Exchange, we may retain up to </font><font style="font-family:inherit;font-size:10pt;">25%</font><font style="font-family:inherit;font-size:10pt;"> of all direct and assumed premiums written by the Exchange.&#160; Management fee revenue is calculated by multiplying the management fee rate by the direct and assumed premiums written by the Exchange. The Exchange issues policies with annual terms only.&#160; Management fees are recorded as revenue upon policy issuance or renewal, as substantially all of the services required to be performed by us have been satisfied at that time.&#160; Certain activities are performed and related costs are incurred by us subsequent to policy issuance in connection with the services provided to the Exchange; however, these activities are inconsequential and perfunctory.</font></div></div>
CY2017 us-gaap Revenue Recognition Services Refundable Fees For Services
RevenueRecognitionServicesRefundableFeesForServices
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;text-decoration:underline;">Recognition of service agreement revenue</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Service agreement revenue consists of service charges we collect from policyholders for providing multiple payment plans on policies written by the Exchange.&#160; Service charges, which are flat dollar charges for each installment billed beyond the first installment, are recognized as revenue when bills are rendered to the policyholder.</font><font style="font-family:inherit;font-size:10pt;font-weight:bold;">&#160;</font><font style="font-family:inherit;font-size:10pt;"> Service agreement revenue also includes late payment and policy reinstatement fees, which are also recognized as revenue when bills are rendered to the policyholder.</font></div></div>
CY2017 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;text-decoration:underline;">Use of estimates</font><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</font></div></div>

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