2023 Q1 Form 10-K Financial Statement

#000193485023000016 Filed on February 27, 2023

View on sec.gov

Income Statement

Concept 2023 Q1 2022 Q4 2022
Revenue $869.0M $623.0M $2.340B
YoY Change 15.87% -63.22% -40.94%
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $53.00M $47.00M $157.0M
YoY Change 76.67% 30.56% 21.71%
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $90.00M -$22.00M $329.0M
YoY Change 18.42% -133.85% -32.02%
% of Gross Profit
Operating Expenses $991.0M $793.0M $1.713B
YoY Change 203.06% -48.31% -40.02%
Operating Profit
YoY Change
Interest Expense $22.00M -$6.000M $29.00M
YoY Change 175.0% -25.0% -200.0%
% of Operating Profit
Other Income/Expense, Net
YoY Change
Pretax Income -$203.0M -$176.0M $598.0M
YoY Change -158.84% -215.79% -44.48%
Income Tax -$8.000M -$76.00M $117.0M
% Of Pretax Income 19.57%
Net Earnings -$195.0M -$100.0M $481.0M
YoY Change -181.59% -182.64% -44.39%
Net Earnings / Revenue -22.44% -16.05% 20.56%
Basic Earnings Per Share -$1.56 $4.18
Diluted Earnings Per Share -$1.56 -$0.69 $4.18
COMMON SHARES
Basic Shares Outstanding 126.4M shares 115.0M shares
Diluted Shares Outstanding 125.0M shares 115.0M shares

Balance Sheet

Concept 2023 Q1 2022 Q4 2022
SHORT-TERM ASSETS
Cash & Short-Term Investments
YoY Change
Cash & Equivalents $1.584B $960.0M $960.0M
Short-Term Investments
Other Short-Term Assets
YoY Change
Inventory
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets $8.721B $8.106B $8.106B
YoY Change 46.9%
LONG-TERM ASSETS
Property, Plant & Equipment $13.00M $21.00M
YoY Change 0.0% 0.0%
Goodwill $1.749B $1.756B
YoY Change 0.0%
Intangibles $3.677B $3.652B
YoY Change 63.47%
Long-Term Investments $2.669B $2.427B $38.30B
YoY Change 3.28% 5.79%
Other Assets
YoY Change
Total Long-Term Assets $50.69B $46.97B $46.97B
YoY Change 8.69%
TOTAL ASSETS
Total Short-Term Assets $8.721B $8.106B $8.106B
Total Long-Term Assets $50.69B $46.97B $46.97B
Total Assets $59.41B $55.08B $55.08B
YoY Change 13.02% 13.02%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.777B $1.083B $1.083B
YoY Change -17.39%
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 $1.777B $1.286B $1.286B
YoY Change -1.91%
LONG-TERM LIABILITIES
Long-Term Debt $1.572B $1.114B $1.114B
YoY Change 14.02%
Other Long-Term Liabilities
YoY Change
Total Long-Term Liabilities $1.572B $1.114B $1.114B
YoY Change 14.02%
TOTAL LIABILITIES
Total Short-Term Liabilities $1.777B $1.286B $1.286B
Total Long-Term Liabilities $1.572B $1.114B $1.114B
Total Liabilities $56.93B $53.26B $53.26B
YoY Change 20.37% 20.37%
SHAREHOLDERS EQUITY
Retained Earnings $1.866B $1.457B
YoY Change 45.55%
Common Stock $3.167B $3.162B
YoY Change 14.98%
Preferred Stock
YoY Change
Treasury Stock (at cost) $0.00 $0.00
YoY Change
Treasury Stock Shares
Shareholders Equity $2.485B $1.816B $1.816B
YoY Change
Total Liabilities & Shareholders Equity $59.41B $55.08B $55.08B
YoY Change 13.02% 13.02%

Cashflow Statement

Concept 2023 Q1 2022 Q4 2022
OPERATING ACTIVITIES
Net Income -$195.0M -$100.0M $481.0M
YoY Change -181.59% -182.64% -44.39%
Depreciation, Depletion And Amortization $90.00M -$22.00M $329.0M
YoY Change 18.42% -133.85% -32.02%
Cash From Operating Activities $1.437B $1.284B $3.171B
YoY Change 239.72% 48.27% 69.48%
INVESTING ACTIVITIES
Capital Expenditures $6.000M $6.000M $32.00M
YoY Change -45.45% -57.14% -3.03%
Acquisitions
YoY Change
Other Investing Activities -$2.402B -$3.159B -$9.338B
YoY Change 10.34% 31.46% 36.74%
Cash From Investing Activities -$2.408B -$3.165B -$9.370B
YoY Change 10.05% 30.95% 36.55%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $1.595B 1.457B $5.626B
YoY Change 13.93% 90.71% -0.16%
NET CHANGE
Cash From Operating Activities $1.437B 1.284B $3.171B
Cash From Investing Activities -$2.408B -3.165B -$9.370B
Cash From Financing Activities $1.595B 1.457B $5.626B
Net Change In Cash $624.0M -424.0M -$573.0M
YoY Change -270.96% -46.12% -188.98%
FREE CASH FLOW
Cash From Operating Activities $1.437B $1.284B $3.171B
Capital Expenditures $6.000M $6.000M $32.00M
Free Cash Flow $1.431B $1.278B $3.139B
YoY Change 247.33% 50.0% 70.78%

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<div style="margin-bottom:9pt;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Management Estimates</span></div><div style="margin-bottom:5pt;text-align:justify;text-indent:18pt"><span style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The preparation of these Consolidated 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 Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</span></div><div style="margin-bottom:5pt;text-align:justify;text-indent:18pt"><span style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:112%">Periodically, and at least annually, typically in the third quarter, we review the assumptions associated with reserves for policy benefits, product guarantees, and amortization of intangibles. During the fourth quarter of 2022, based on increases in interest rates and pricing changes during 2022, we updated certain FIA assumptions used to calculate the fair value of the embedded derivative component within contractholder funds and certain assumptions used to calculate SOP 03-1 liabilities and intangible balances. These changes, taken together, resulted in an increase in contractholder funds and future policy benefits of $97 million and an increase to intangible assets of $47 million</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:112%">. </span></div><div style="margin-bottom:5pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:112%">During the third quarter of 2021, we implemented a new actuarial valuation system. As a result, our third quarter 2021 assumption updates include model refinements and assumption updates resulting from the implementation. The system implementation and assumption review process that occurred in the third quarter of 2021, included refinements in the calculation of the fair value of the embedded derivative component of our FIAs within contractholder funds and updates to the surrender rates, GMWB utilization, IUL premium persistency, </span></div>maintenance expenses, and earned rate assumptions to reflect our current and expected future experience. These changes, taken together, resulted in a decrease in contractholder funds and future policy reserves of $425 million and a decrease to intangible assets of $136 million. These model refinements and assumptions are also used in the SOP 03-1 liability for GMWB and GMDB benefits and resulted in an increase in the liability of $28 million. There was no material change to underlying policyholder behavior. The majority of the changes represent one-time adjustments in the third quarter of 2021 related to the cumulative impact of the system implementation and are not expected to re-occur in the future.
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CY2022 us-gaap Supplementary Insurance Information Premium Revenue
SupplementaryInsuranceInformationPremiumRevenue
1695000000 usd
CY2021 us-gaap Supplementary Insurance Information Premium Revenue
SupplementaryInsuranceInformationPremiumRevenue
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us-gaap Supplementary Insurance Information Premium Revenue
SupplementaryInsuranceInformationPremiumRevenue
138000000 usd
us-gaap Supplementary Insurance Information Premium Revenue
SupplementaryInsuranceInformationPremiumRevenue
90000000 usd
CY2021 us-gaap Supplementary Insurance Information Net Investment Income
SupplementaryInsuranceInformationNetInvestmentIncome
1852000000 usd
us-gaap Supplementary Insurance Information Net Investment Income
SupplementaryInsuranceInformationNetInvestmentIncome
743000000 usd
us-gaap Supplementary Insurance Information Net Investment Income
SupplementaryInsuranceInformationNetInvestmentIncome
403000000 usd
CY2022 us-gaap Supplementary Insurance Information Benefits Claims Losses And Settlement Expense
SupplementaryInsuranceInformationBenefitsClaimsLossesAndSettlementExpense
1125000000 usd
CY2021 us-gaap Supplementary Insurance Information Benefits Claims Losses And Settlement Expense
SupplementaryInsuranceInformationBenefitsClaimsLossesAndSettlementExpense
2138000000 usd
us-gaap Supplementary Insurance Information Benefits Claims Losses And Settlement Expense
SupplementaryInsuranceInformationBenefitsClaimsLossesAndSettlementExpense
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us-gaap Supplementary Insurance Information Benefits Claims Losses And Settlement Expense
SupplementaryInsuranceInformationBenefitsClaimsLossesAndSettlementExpense
298000000 usd
CY2022 us-gaap Supplementary Insurance Information Amortization Of Deferred Policy Acquisition Costs
SupplementaryInsuranceInformationAmortizationOfDeferredPolicyAcquisitionCosts
81000000 usd
CY2021 us-gaap Supplementary Insurance Information Amortization Of Deferred Policy Acquisition Costs
SupplementaryInsuranceInformationAmortizationOfDeferredPolicyAcquisitionCosts
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us-gaap Supplementary Insurance Information Amortization Of Deferred Policy Acquisition Costs
SupplementaryInsuranceInformationAmortizationOfDeferredPolicyAcquisitionCosts
4000000 usd
us-gaap Supplementary Insurance Information Amortization Of Deferred Policy Acquisition Costs
SupplementaryInsuranceInformationAmortizationOfDeferredPolicyAcquisitionCosts
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SupplementaryInsuranceInformationOtherOperatingExpense
102000000 usd
CY2021 us-gaap Supplementary Insurance Information Other Operating Expense
SupplementaryInsuranceInformationOtherOperatingExpense
105000000 usd
us-gaap Supplementary Insurance Information Other Operating Expense
SupplementaryInsuranceInformationOtherOperatingExpense
75000000 usd
us-gaap Supplementary Insurance Information Other Operating Expense
SupplementaryInsuranceInformationOtherOperatingExpense
75000000 usd
CY2022Q4 srt Life Insurance In Force Gross
LifeInsuranceInForceGross
6258000000 usd
CY2022Q4 srt Life Insurance In Force Ceded
LifeInsuranceInForceCeded
1594000000 usd
CY2022Q4 srt Life Insurance In Force Assumed
LifeInsuranceInForceAssumed
0 usd
CY2022Q4 srt Life Insurance In Force Net
LifeInsuranceInForceNet
4664000000 usd
CY2022Q4 srt Life Insurance In Force Percentage Assumed To Net
LifeInsuranceInForcePercentageAssumedToNet
0
CY2022 us-gaap Direct Premiums Earned
DirectPremiumsEarned
1822000000 usd
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CededPremiumsEarned
178000000 usd
CY2022 us-gaap Assumed Premiums Earned
AssumedPremiumsEarned
0 usd
CY2022 us-gaap Premiums Earned Net
PremiumsEarnedNet
1644000000 usd
CY2022 us-gaap Premiums Percentage Assumed To Net
PremiumsPercentageAssumedToNet
0
CY2021Q4 srt Life Insurance In Force Gross
LifeInsuranceInForceGross
4881000000 usd
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LifeInsuranceInForceCeded
1682000000 usd
CY2021Q4 srt Life Insurance In Force Assumed
LifeInsuranceInForceAssumed
0 usd
CY2021Q4 srt Life Insurance In Force Net
LifeInsuranceInForceNet
3199000000 usd
CY2021Q4 srt Life Insurance In Force Percentage Assumed To Net
LifeInsuranceInForcePercentageAssumedToNet
0
CY2021 us-gaap Direct Premiums Earned
DirectPremiumsEarned
1583000000 usd
CY2021 us-gaap Ceded Premiums Earned
CededPremiumsEarned
188000000 usd
CY2021 us-gaap Assumed Premiums Earned
AssumedPremiumsEarned
0 usd
CY2021 us-gaap Premiums Earned Net
PremiumsEarnedNet
1395000000 usd
CY2021 us-gaap Premiums Percentage Assumed To Net
PremiumsPercentageAssumedToNet
0
CY2020Q4 srt Life Insurance In Force Gross
LifeInsuranceInForceGross
3892000000 usd
CY2020Q4 srt Life Insurance In Force Ceded
LifeInsuranceInForceCeded
2064000000 usd
CY2020Q4 srt Life Insurance In Force Assumed
LifeInsuranceInForceAssumed
0 usd
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LifeInsuranceInForceNet
1828000000 usd
CY2020Q4 srt Life Insurance In Force Percentage Assumed To Net
LifeInsuranceInForcePercentageAssumedToNet
0
us-gaap Direct Premiums Earned
DirectPremiumsEarned
254000000 usd
us-gaap Ceded Premiums Earned
CededPremiumsEarned
116000000 usd
us-gaap Assumed Premiums Earned
AssumedPremiumsEarned
0 usd
us-gaap Premiums Earned Net
PremiumsEarnedNet
138000000 usd
us-gaap Premiums Percentage Assumed To Net
PremiumsPercentageAssumedToNet
0
CY2020Q2 srt Life Insurance In Force Gross
LifeInsuranceInForceGross
3626000000 usd
CY2020Q2 srt Life Insurance In Force Ceded
LifeInsuranceInForceCeded
2025000000 usd
CY2020Q2 srt Life Insurance In Force Assumed
LifeInsuranceInForceAssumed
0 usd
CY2020Q2 srt Life Insurance In Force Net
LifeInsuranceInForceNet
1601000000 usd
CY2020Q2 srt Life Insurance In Force Percentage Assumed To Net
LifeInsuranceInForcePercentageAssumedToNet
0
us-gaap Direct Premiums Earned
DirectPremiumsEarned
179000000 usd
us-gaap Ceded Premiums Earned
CededPremiumsEarned
89000000 usd
us-gaap Assumed Premiums Earned
AssumedPremiumsEarned
0 usd
us-gaap Premiums Earned Net
PremiumsEarnedNet
90000000 usd
us-gaap Premiums Percentage Assumed To Net
PremiumsPercentageAssumedToNet
0

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