2022 Q2 Form 10-Q Financial Statement

#000092262122000032 Filed on July 28, 2022

View on sec.gov

Income Statement

Concept 2022 Q2 2022 Q1 2021 Q4
Revenue -$2.094M $3.009M $635.9M
YoY Change -112.75% -83.27% 4.37%
Cost Of Revenue $622.1M $587.8M $574.1M
YoY Change 4.57% 6.08% 5.49%
Gross Profit $104.0M $84.31M $61.83M
YoY Change 22.26% 10.79% -5.02%
Gross Profit Margin 2801.99% 9.72%
Selling, General & Admin
YoY Change
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization
YoY Change
% of Gross Profit
Operating Expenses $622.1M $587.8M $0.00
YoY Change 4.57% 6.09% -168.0%
Operating Profit $104.0M $84.31M $61.83M
YoY Change 22.26% 10.8% -5.02%
Interest Expense $895.0K $999.0K $11.29M
YoY Change -13.86% -0.99% -15.78%
% of Operating Profit 0.86% 1.18% 18.25%
Other Income/Expense, Net $337.0K $473.0K -$3.285M
YoY Change -97.95% -97.37% 1542.5%
Pretax Income $101.3M $86.80M $69.83M
YoY Change 1.45% -6.22% -10.71%
Income Tax $21.20M $18.18M $14.79M
% Of Pretax Income 20.92% 20.94% 21.17%
Net Earnings $80.15M $68.62M $55.04M
YoY Change 1.41% -6.72% -12.35%
Net Earnings / Revenue 2280.46% 8.66%
Basic Earnings Per Share
Diluted Earnings Per Share $1.372M $1.175M $942.4K
COMMON SHARES
Basic Shares Outstanding
Diluted Shares Outstanding

Balance Sheet

Concept 2022 Q2 2022 Q1 2021 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $147.5M $187.5M $222.1M
YoY Change -16.63% 23.3% 24.12%
Cash & Equivalents $90.32M $141.3M $183.7M
Short-Term Investments $57.15M $46.16M $38.40M
Other Short-Term Assets $50.51M $78.88M $56.21M
YoY Change -15.22% 27.22% 12.41%
Inventory
Prepaid Expenses
Receivables $538.3M $478.8M $479.1M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $743.1M $751.3M $763.7M
YoY Change -0.5% 7.04% 4.29%
LONG-TERM ASSETS
Property, Plant & Equipment $402.5M $396.1M $374.8M
YoY Change 43.53% 40.45% 33.86%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments $904.0M $955.2M $995.4M
YoY Change -10.47% -3.9% -0.95%
Other Assets $48.26M $49.80M $49.27M
YoY Change -0.8% 12.49% 22.91%
Total Long-Term Assets $1.437B $1.473B $1.478B
YoY Change 1.43% 5.39% 6.75%
TOTAL ASSETS
Total Short-Term Assets $743.1M $751.3M $763.7M
Total Long-Term Assets $1.437B $1.473B $1.478B
Total Assets $2.180B $2.224B $2.242B
YoY Change 0.77% 5.94% 5.9%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $141.9M $186.4M $138.3M
YoY Change -5.64% 10.94% -1.2%
Accrued Expenses $55.15M $31.51M $120.4M
YoY Change -12.04% 1.64% -0.47%
Deferred Revenue $35.84M $34.87M $34.94M
YoY Change 0.26% -2.59% -5.37%
Short-Term Debt $40.00M $0.00 $0.00
YoY Change
Long-Term Debt Due $0.00 $2.132M $2.098M
YoY Change -100.0% 3.85% 3.3%
Total Short-Term Liabilities $636.6M $601.3M $630.9M
YoY Change 7.55% 5.23% 0.51%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $91.18M $91.73M
YoY Change -100.0% -2.29% -2.24%
Other Long-Term Liabilities $27.23M $26.60M $14.34M
YoY Change 52.43% 55.9% 51.86%
Total Long-Term Liabilities $27.23M $117.8M $106.1M
YoY Change -75.39% 6.71% 2.71%
TOTAL LIABILITIES
Total Short-Term Liabilities $636.6M $601.3M $630.9M
Total Long-Term Liabilities $27.23M $117.8M $106.1M
Total Liabilities $840.8M $889.7M $899.6M
YoY Change -8.46% -0.15% -3.17%
SHAREHOLDERS EQUITY
Retained Earnings $2.541B $2.512B $2.495B
YoY Change 3.7% 3.85% 4.24%
Common Stock $16.48M $16.48M $16.50M
YoY Change -0.09% -0.09% 0.05%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $1.339B $1.334B $1.342B
YoY Change
Total Liabilities & Shareholders Equity $2.180B $2.224B $2.242B
YoY Change 0.77% 5.94% 5.9%

Cashflow Statement

Concept 2022 Q2 2022 Q1 2021 Q4
OPERATING ACTIVITIES
Net Income $80.15M $68.62M $55.04M
YoY Change 1.41% -6.72% -12.35%
Depreciation, Depletion And Amortization
YoY Change
Cash From Operating Activities $82.72M $23.55M $138.8M
YoY Change -12.2% -29.65% 28.36%
INVESTING ACTIVITIES
Capital Expenditures -$12.56M -$15.46M -$110.7M
YoY Change -26.52% 39.26% 3359.47%
Acquisitions
YoY Change
Other Investing Activities -$15.90M $1.726M -$31.63M
YoY Change 108.84% 475.33% 47.8%
Cash From Investing Activities -$28.46M -$13.73M -$142.3M
YoY Change 15.19% 26.82% 478.59%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -105.2M -$52.22M -48.72M
YoY Change 116.05% 7.22% -64.85%
NET CHANGE
Cash From Operating Activities 82.72M $23.55M 138.8M
Cash From Investing Activities -28.46M -$13.73M -142.3M
Cash From Financing Activities -105.2M -$52.22M -48.72M
Net Change In Cash -50.98M -$42.40M -52.29M
YoY Change -345.12% 62.76% -5.09%
FREE CASH FLOW
Cash From Operating Activities $82.72M $23.55M $138.8M
Capital Expenditures -$12.56M -$15.46M -$110.7M
Free Cash Flow $95.28M $39.01M $249.5M
YoY Change -14.4% -12.5% 124.13%

Facts In Submission

Frame Concept Type Concept / XBRL Key Value Unit
dei Entity Central Index Key
EntityCentralIndexKey
0000922621
dei Amendment Flag
AmendmentFlag
false
dei Document Fiscal Year Focus
DocumentFiscalYearFocus
2022
dei Document Fiscal Period Focus
DocumentFiscalPeriodFocus
Q2
dei Current Fiscal Year End Date
CurrentFiscalYearEndDate
--12-31
dei Document Type
DocumentType
10-Q
dei Document Quarterly Report
DocumentQuarterlyReport
true
dei Document Period End Date
DocumentPeriodEndDate
2022-06-30
dei Document Transition Report
DocumentTransitionReport
false
dei Entity File Number
EntityFileNumber
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dei Entity Registrant Name
EntityRegistrantName
ERIE INDEMNITY COMPANY
dei Entity Incorporation State Country Code
EntityIncorporationStateCountryCode
PA
dei Entity Tax Identification Number
EntityTaxIdentificationNumber
25-0466020
dei Entity Address Address Line1
EntityAddressAddressLine1
100 Erie Insurance Place,
dei Entity Address City Or Town
EntityAddressCityOrTown
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dei Entity Address State Or Province
EntityAddressStateOrProvince
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dei Entity Address Postal Zip Code
EntityAddressPostalZipCode
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dei City Area Code
CityAreaCode
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dei Local Phone Number
LocalPhoneNumber
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dei Security12b Title
Security12bTitle
Class A common stock,
dei Trading Symbol
TradingSymbol
ERIE
dei Security Exchange Name
SecurityExchangeName
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dei Entity Current Reporting Status
EntityCurrentReportingStatus
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dei Entity Interactive Data Current
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dei Entity Filer Category
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us-gaap Nature Of Operations
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Nature of Operations<div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> </span></div><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">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").  The Exchange, which also commenced business in 1925, is a Pennsylvania-domiciled reciprocal insurer that writes property and casualty insurance. </span></div><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> </span></div><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Our primary function as attorney-in-fact is to perform policy issuance and renewal services on behalf of the subscribers at the Exchange. We also act as attorney-in-fact on behalf of the Exchange with respect to all claims handling and investment management services, as well as the service provider for all claims handling, life insurance, and investment management services for its insurance subsidiaries, collectively referred to as "administrative services". Acting as attorney-in-fact in these two capacities 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.  Pursuant to the subscriber's agreement for acting as attorney-in-fact in these two capacities, we earn a management fee calculated as a percentage of the direct and affiliated assumed premiums written by the Exchange.</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The policy issuance and renewal services we provide to 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. The underwriting services we provide include underwriting and policy processing. The remaining services we provide include customer service and administrative support. We also provide information technology services that support all the functions listed above. Included in these expenses are allocations of costs for departments that support these policy issuance and renewal functions. </span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">By virtue of its legal structure as a reciprocal insurer, the Exchange does not have any employees or officers. Therefore, it enters into contractual relationships by and through an attorney-in-fact. Indemnity serves as the attorney-in-fact on behalf of the Exchange with respect to its administrative services. The Exchange's insurance subsidiaries also utilize Indemnity for these services 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. Life insurance 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. Included in these expenses are allocations of costs for departments that support these administrative functions. The amounts incurred for these services are reimbursed to Indemnity at cost in accordance with the subscriber's agreement and the service agreements. State insurance regulations require that intercompany service agreements and any material amendments be approved in advance by the state insurance department. </span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">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 for its management fee and cost reimbursements. See Note 12, "Concentrations of Credit Risk". </span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;text-decoration:underline">Coronavirus ("COVID-19") pandemic</span></div>In March 2020, the outbreak of the coronavirus ("COVID-19") was declared a global pandemic and pandemic conditions have created an inflationary environment which may impact estimated loss reserves and future premium rates of the Exchange. The uncertainty resulting from COVID-19 and subsequent resulting conditions continues to evolve and the ultimate impact and duration remains uncertain at this time. We are unable to predict the duration or extent of the business disruption or the financial impact given the ongoing development of the pandemic and its impact on the economy and financial markets.
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<div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;text-decoration:underline">Use of estimates</span></div><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">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.</span></div>
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DefinedBenefitPlanAmortizationOfGainsLosses
-8053000 usd
CY2021Q2 us-gaap Debt Securities Available For Sale Allowance For Credit Loss Recovery
DebtSecuritiesAvailableForSaleAllowanceForCreditLossRecovery
-1000 usd
us-gaap Debt Securities Available For Sale Allowance For Credit Loss Recovery
DebtSecuritiesAvailableForSaleAllowanceForCreditLossRecovery
-153000 usd
us-gaap Debt Securities Available For Sale Allowance For Credit Loss Recovery
DebtSecuritiesAvailableForSaleAllowanceForCreditLossRecovery
86000 usd
CY2022Q2 erie Available For Sale Debt Securities And Financing Receivables Impairment Loss Recovery Net
AvailableForSaleDebtSecuritiesAndFinancingReceivablesImpairmentLossRecoveryNet
-38000 usd
CY2021Q2 erie Available For Sale Debt Securities And Financing Receivables Impairment Loss Recovery Net
AvailableForSaleDebtSecuritiesAndFinancingReceivablesImpairmentLossRecoveryNet
-1000 usd
erie Available For Sale Debt Securities And Financing Receivables Impairment Loss Recovery Net
AvailableForSaleDebtSecuritiesAndFinancingReceivablesImpairmentLossRecoveryNet
-254000 usd
erie Available For Sale Debt Securities And Financing Receivables Impairment Loss Recovery Net
AvailableForSaleDebtSecuritiesAndFinancingReceivablesImpairmentLossRecoveryNet
86000 usd
CY2022Q2 us-gaap Defined Benefit Plan Funded Percentage
DefinedBenefitPlanFundedPercentage
1
CY2022Q2 us-gaap Defined Benefit Plan Service Cost
DefinedBenefitPlanServiceCost
12561000 usd
CY2021Q2 us-gaap Defined Benefit Plan Service Cost
DefinedBenefitPlanServiceCost
13260000 usd
us-gaap Defined Benefit Plan Service Cost
DefinedBenefitPlanServiceCost
25121000 usd
us-gaap Defined Benefit Plan Service Cost
DefinedBenefitPlanServiceCost
26520000 usd
CY2022Q2 us-gaap Defined Benefit Plan Interest Cost
DefinedBenefitPlanInterestCost
9941000 usd
CY2021Q2 us-gaap Defined Benefit Plan Interest Cost
DefinedBenefitPlanInterestCost
9206000 usd
us-gaap Defined Benefit Plan Interest Cost
DefinedBenefitPlanInterestCost
19882000 usd
us-gaap Defined Benefit Plan Interest Cost
DefinedBenefitPlanInterestCost
18412000 usd
CY2022Q2 us-gaap Defined Benefit Plan Expected Return On Plan Assets
DefinedBenefitPlanExpectedReturnOnPlanAssets
13639000 usd
CY2021Q2 us-gaap Defined Benefit Plan Expected Return On Plan Assets
DefinedBenefitPlanExpectedReturnOnPlanAssets
12568000 usd
us-gaap Defined Benefit Plan Expected Return On Plan Assets
DefinedBenefitPlanExpectedReturnOnPlanAssets
27278000 usd
us-gaap Defined Benefit Plan Expected Return On Plan Assets
DefinedBenefitPlanExpectedReturnOnPlanAssets
25137000 usd
CY2022Q2 us-gaap Defined Benefit Plan Amortization Of Prior Service Cost Credit
DefinedBenefitPlanAmortizationOfPriorServiceCostCredit
360000 usd
CY2021Q2 us-gaap Defined Benefit Plan Amortization Of Prior Service Cost Credit
DefinedBenefitPlanAmortizationOfPriorServiceCostCredit
357000 usd
us-gaap Defined Benefit Plan Amortization Of Prior Service Cost Credit
DefinedBenefitPlanAmortizationOfPriorServiceCostCredit
721000 usd
us-gaap Defined Benefit Plan Amortization Of Prior Service Cost Credit
DefinedBenefitPlanAmortizationOfPriorServiceCostCredit
714000 usd
CY2022Q2 us-gaap Defined Benefit Plan Amortization Of Gains Losses
DefinedBenefitPlanAmortizationOfGainsLosses
-1830000 usd
CY2021Q2 us-gaap Defined Benefit Plan Amortization Of Gains Losses
DefinedBenefitPlanAmortizationOfGainsLosses
-4026000 usd
CY2022Q2 us-gaap Defined Benefit Plan Net Periodic Benefit Cost
DefinedBenefitPlanNetPeriodicBenefitCost
11053000 usd
CY2021Q2 us-gaap Defined Benefit Plan Net Periodic Benefit Cost
DefinedBenefitPlanNetPeriodicBenefitCost
14281000 usd
us-gaap Defined Benefit Plan Net Periodic Benefit Cost
DefinedBenefitPlanNetPeriodicBenefitCost
22106000 usd
us-gaap Defined Benefit Plan Net Periodic Benefit Cost
DefinedBenefitPlanNetPeriodicBenefitCost
28562000 usd
CY2022Q2 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.209
CY2021Q2 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.209
us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.209
us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.207
CY2022Q2 us-gaap Accounts Receivable Net Current
AccountsReceivableNetCurrent
538300000 usd
CY2021Q4 us-gaap Accounts Receivable Net Current
AccountsReceivableNetCurrent
479100000 usd

Files In Submission

Name View Source Status
0000922621-22-000032-index-headers.html Edgar Link pending
0000922621-22-000032-index.html Edgar Link pending
0000922621-22-000032.txt Edgar Link pending
0000922621-22-000032-xbrl.zip Edgar Link pending
erie-20220630.htm Edgar Link pending
erie-20220630.xsd Edgar Link pending
erie-20220630_cal.xml Edgar Link unprocessable
erie-20220630_def.xml Edgar Link unprocessable
erie-20220630_htm.xml Edgar Link completed
erie-20220630_lab.xml Edgar Link unprocessable
erie-20220630_pre.xml Edgar Link unprocessable
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