2012 Q4 Form 10-Q Financial Statement

#000006499612000009 Filed on October 31, 2012

View on sec.gov

Income Statement

Concept 2012 Q4 2012 Q3 2011 Q3
Revenue $681.2M $731.8M $615.7M
YoY Change -9.11% 18.85% -19.7%
Cost Of Revenue $467.9M $458.5M
YoY Change 2.05%
Gross Profit $263.8M $157.2M
YoY Change 67.83%
Gross Profit Margin 36.06% 25.53%
Selling, General & Admin
YoY Change
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $9.500M $121.9M $121.0M
YoY Change -28.57% 0.74% 1110.16%
% of Gross Profit 46.2% 76.98%
Operating Expenses $720.0M $640.1M $632.6M
YoY Change 12.87% 1.19% 0.52%
Operating Profit -$376.3M -$475.4M
YoY Change -20.85%
Interest Expense -$400.0K $388.0K $1.286M
YoY Change -55.56% -69.83% -180.38%
% of Operating Profit
Other Income/Expense, Net
YoY Change
Pretax Income -$39.16M $91.33M -$18.12M
YoY Change -135.38% -604.08% -113.34%
Income Tax -$21.80M $25.13M -$14.34M
% Of Pretax Income 27.51%
Net Earnings -$17.38M $66.20M -$3.782M
YoY Change -121.87% -1850.42% -103.91%
Net Earnings / Revenue -2.55% 9.05% -0.61%
Basic Earnings Per Share -$0.32 $1.21 -$0.07
Diluted Earnings Per Share -$0.32 $1.21 -$0.07
COMMON SHARES
Basic Shares Outstanding 54.91M shares 54.91M shares 54.83M shares
Diluted Shares Outstanding 54.93M shares 54.83M shares

Balance Sheet

Concept 2012 Q4 2012 Q3 2011 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments
YoY Change
Cash & Equivalents
Short-Term Investments
Other Short-Term Assets
YoY Change
Inventory
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets $24.80M $24.80M $10.20M
YoY Change 119.47% 143.14% -33.33%
LONG-TERM ASSETS
Property, Plant & Equipment $161.9M $165.2M $180.0M
YoY Change -8.9% -8.24% -8.72%
Goodwill $42.80M $42.85M
YoY Change -0.13%
Intangibles $47.59M $49.11M
YoY Change -11.46%
Long-Term Investments $3.180B $3.161B $3.038B
YoY Change 3.84% 4.05% -5.77%
Other Assets $0.00 $0.00 $45.50M
YoY Change -100.0% -100.0% 140.74%
Total Long-Term Assets $4.165B $4.186B $4.086B
YoY Change 2.62% 2.44% -3.74%
TOTAL ASSETS
Total Short-Term Assets $24.80M $24.80M $10.20M
Total Long-Term Assets $4.165B $4.186B $4.086B
Total Assets $4.190B $4.211B $4.097B
YoY Change 2.94% 2.79% -3.85%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $96.20M $100.2M $105.9M
YoY Change 1.58% -5.38% -23.54%
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 $96.20M $100.2M $121.5M
YoY Change 1.48% -17.53% -12.27%
LONG-TERM LIABILITIES
Long-Term Debt $140.0M $140.0M $138.0M
YoY Change 0.0% 1.45% -48.7%
Other Long-Term Liabilities $154.0M $160.2M $182.8M
YoY Change 3.36% -12.36% 14.39%
Total Long-Term Liabilities $294.0M $300.2M $320.8M
YoY Change 1.73% -6.42% -25.19%
TOTAL LIABILITIES
Total Short-Term Liabilities $96.20M $100.2M $121.5M
Total Long-Term Liabilities $294.0M $300.2M $320.8M
Total Liabilities $2.347B $2.317B $2.287B
YoY Change 6.09% 1.31% -5.08%
SHAREHOLDERS EQUITY
Retained Earnings $1.763B $1.814B
YoY Change -0.97%
Common Stock $79.38M $79.70M
YoY Change 2.86%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $1.843B $1.894B $1.810B
YoY Change
Total Liabilities & Shareholders Equity $4.190B $4.211B $4.097B
YoY Change 2.94% 2.79% -3.85%

Cashflow Statement

Concept 2012 Q4 2012 Q3 2011 Q3
OPERATING ACTIVITIES
Net Income -$17.38M $66.20M -$3.782M
YoY Change -121.87% -1850.42% -103.91%
Depreciation, Depletion And Amortization $9.500M $121.9M $121.0M
YoY Change -28.57% 0.74% 1110.16%
Cash From Operating Activities $34.80M $63.90M $73.00M
YoY Change -557.89% -12.47% 54.01%
INVESTING ACTIVITIES
Capital Expenditures -$3.000M -$4.400M -$3.000M
YoY Change -45.45% 46.67% -55.88%
Acquisitions
YoY Change
Other Investing Activities -$28.50M $1.700M -$7.600M
YoY Change -163.33% -122.37% -85.71%
Cash From Investing Activities -$31.40M -$2.800M -$10.60M
YoY Change -179.49% -73.58% -82.33%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -33.20M -33.50M -157.7M
YoY Change 9.57% -78.76% 391.28%
NET CHANGE
Cash From Operating Activities 34.80M 63.90M 73.00M
Cash From Investing Activities -31.40M -2.800M -10.60M
Cash From Financing Activities -33.20M -33.50M -157.7M
Net Change In Cash -29.80M 27.60M -95.30M
YoY Change -1962.5% -128.96% 113.2%
FREE CASH FLOW
Cash From Operating Activities $34.80M $63.90M $73.00M
Capital Expenditures -$3.000M -$4.400M -$3.000M
Free Cash Flow $37.80M $68.30M $76.00M
YoY Change -1900.0% -10.13% 40.22%

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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Recently Issued Accounting Standards</font></div><div style="line-height:120%;padding-top:6px;text-align:justify;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In June 2011, the FASB issued a new standard which revises the manner in which entities present comprehensive income in their financial statements. The new standard removes the presentation options and requires entities to report components of comprehensive income in either&#160;a continuous statement of comprehensive income or&#160;two separate but consecutive statements. The new standard does not change the items that must be reported in other comprehensive income. The Company adopted the new standard which became effective for the interim period ended March 31, 2012. The adoption of the new standard did not have a material impact on the Company&#8217;s consolidated financial statements. In December 2011, the FASB issued a new standard which indefinitely defers certain provisions of this standard. One of this standard&#8217;s provisions required entities to present reclassification adjustments out of accumulated other comprehensive income by component in both the statement in which net income is presented and the statement in which other comprehensive income is presented. Accordingly, this requirement is indefinitely deferred and will be further deliberated by the FASB at a future date. </font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In May 2011, the FASB issued a new standard which develops a single and converged guidance on how to measure fair value and on required disclosures about fair value measurements. While the new standard is largely consistent with existing fair value measurement principles, it expands existing disclosure requirements for fair value measurements and makes other amendments. The Company adopted the new standard which became effective for the interim period ended March 31, 2012. The adoption of the new standard did not have a material impact on the Company&#8217;s consolidated financial statements.</font></div></div>
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us-gaap Other Comprehensive Income Loss Before Tax Portion Attributable To Parent
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us-gaap Other Cost And Expense Operating
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us-gaap Other Cost And Expense Operating
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us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
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0 USD
us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
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201000 USD
CY2012Q3 us-gaap Other Cost And Expense Operating
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50225000 USD
CY2011Q3 us-gaap Other Income
OtherIncome
3508000 USD
us-gaap Other Income
OtherIncome
7790000 USD
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160187000 USD
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OtherReceivables
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12102000 USD
us-gaap Other Income
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us-gaap Payments For Proceeds From Other Investing Activities
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us-gaap Payments Of Dividends Common Stock
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us-gaap Payments Of Dividends Common Stock
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us-gaap Payments To Acquire Available For Sale Securities Debt
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us-gaap Payments To Acquire Available For Sale Securities Debt
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us-gaap Payments To Acquire Available For Sale Securities Equity
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292972000 USD
us-gaap Payments To Acquire Available For Sale Securities Equity
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236785000 USD
us-gaap Payments To Acquire Productive Assets
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12613000 USD
us-gaap Payments To Acquire Productive Assets
PaymentsToAcquireProductiveAssets
12205000 USD
CY2011Q3 us-gaap Policyholder Benefits And Claims Incurred Net
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458530000 USD
CY2012Q3 us-gaap Policyholder Benefits And Claims Incurred Net
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467929000 USD
us-gaap Policyholder Benefits And Claims Incurred Net
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1415096000 USD
us-gaap Policyholder Benefits And Claims Incurred Net
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1356329000 USD
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CY2011Q3 us-gaap Premiums Earned Net Property And Casualty
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CY2012Q3 us-gaap Premiums Earned Net Property And Casualty
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us-gaap Premiums Earned Net Property And Casualty
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us-gaap Premiums Earned Net Property And Casualty
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us-gaap Proceeds From Maturities Prepayments And Calls Of Available For Sale Securities
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us-gaap Proceeds From Maturities Prepayments And Calls Of Available For Sale Securities
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us-gaap Proceeds From Sale Of Available For Sale Securities Debt
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us-gaap Proceeds From Sale Of Available For Sale Securities Debt
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us-gaap Proceeds From Sale Of Available For Sale Securities Equity
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172144000 USD
us-gaap Proceeds From Sale Of Available For Sale Securities Equity
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us-gaap Proceeds From Sale Of Productive Assets
ProceedsFromSaleOfProductiveAssets
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us-gaap Proceeds From Sale Of Productive Assets
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us-gaap Proceeds From Sale Of Short Term Investments
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us-gaap Proceeds From Sale Of Short Term Investments
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us-gaap Proceeds From Stock Options Exercised
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us-gaap Proceeds From Stock Options Exercised
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us-gaap Realized Investment Gains Losses
RealizedInvestmentGainsLosses
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us-gaap Realized Investment Gains Losses
RealizedInvestmentGainsLosses
78656000 USD
us-gaap Repayments Of Unsecured Debt
RepaymentsOfUnsecuredDebt
0 USD
us-gaap Repayments Of Unsecured Debt
RepaymentsOfUnsecuredDebt
125000000 USD
CY2012Q3 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
1814135000 USD
CY2011Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
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CY2011Q3 us-gaap Revenues
Revenues
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CY2012Q3 us-gaap Revenues
Revenues
731778000 USD
us-gaap Revenues
Revenues
2027831000 USD
us-gaap Revenues
Revenues
2102158000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
312000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
606000 USD
CY2011 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod
80000 shares
CY2010 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod
55000 shares
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod
89000 shares
CY2011Q4 us-gaap Short Term Investments
ShortTermInvestments
236444000 USD
CY2012Q3 us-gaap Short Term Investments
ShortTermInvestments
221083000 USD
CY2012Q3 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
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1893833000 USD
CY2011Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
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1857483000 USD
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2468717000 USD
CY2011Q4 us-gaap Trading Securities Debt
TradingSecuritiesDebt
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CY2012Q3 us-gaap Trading Securities Equity
TradingSecuritiesEquity
470813000 USD
CY2011Q4 us-gaap Trading Securities Equity
TradingSecuritiesEquity
380388000 USD
CY2012Q3 us-gaap Unearned Premiums
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CY2011Q4 us-gaap Unearned Premiums
UnearnedPremiums
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us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:18px;text-align:justify;text-indent:16px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Use of Estimates</font></div><div style="line-height:120%;padding-top:6px;text-align:justify;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. These estimates require the Company to apply complex assumptions and judgments, and often the Company must make estimates about effects of matters that are inherently uncertain and will likely change in subsequent periods. The most significant assumptions in the preparation of these consolidated financial statements relate to reserves for losses and loss adjustment expenses. Actual results could differ from those estimates (See Note 1 &#8220;Summary of Significant Accounting Policies&#8221; of the Notes to Consolidated Financial Statements in the Company&#8217;s Annual Report on Form 10-K for the year ended </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">December&#160;31, 2011</font><font style="font-family:inherit;font-size:10pt;">).</font></div></div>
CY2012Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
54925000 shares
CY2011Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
54826000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
54918000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
54835000 shares
CY2012Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
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54911000 shares
CY2011Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
54826000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
54818000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
54895000 shares
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2345620000 USD
CY2012Q3 mcy Amortized Cost On Fixed Maturity Trading Investments
AmortizedCostOnFixedMaturityTradingInvestments
2318100000 USD
CY2011Q4 mcy Cost Equity Security Trading Investments
CostEquitySecurityTradingInvestments
388417000 USD
CY2012Q3 mcy Cost Equity Security Trading Investments
CostEquitySecurityTradingInvestments
458690000 USD
CY2011Q4 mcy Cost Short Term Investments
CostShortTermInvestments
236433000 USD
CY2012Q3 mcy Cost Short Term Investments
CostShortTermInvestments
221163000 USD
CY2012Q3 mcy Fair Value Assets Measured On Recurring Basis
FairValueAssetsMeasuredOnRecurringBasis
3160613000 USD
CY2011Q4 mcy Fair Value Assets Measured On Recurring Basis
FairValueAssetsMeasuredOnRecurringBasis
3062421000 USD
CY2012Q3 mcy Fair Value Liabilities Measured On Recurring Basis
FairValueLiabilitiesMeasuredOnRecurringBasis
431000 USD
CY2011Q4 mcy Fair Value Liabilities Measured On Recurring Basis
FairValueLiabilitiesMeasuredOnRecurringBasis
1325000 USD
mcy Fair Value Transfers Between Levels One Two And Three Amount
FairValueTransfersBetweenLevelsOneTwoAndThreeAmount
0 transfers
mcy Fair Value Transfers Between Levels One Two And Three Amount
FairValueTransfersBetweenLevelsOneTwoAndThreeAmount
0 transfers
mcy Percentage Of Largest Amount Of Tax Benefit Realized
PercentageOfLargestAmountOfTaxBenefitRealized
0.5
mcy Percentage Of Specific Unadjusted Broker Quotes Obtained
PercentageOfSpecificUnadjustedBrokerQuotesObtained
0.03
mcy Percentage Of Unadjusted Fair Value Obtained
PercentageOfUnadjustedFairValueObtained
0.97
mcy Performance Period Of Restricted Stock And Restricted Stock Units
PerformancePeriodOfRestrictedStockAndRestrictedStockUnits
P3Y
CY2011 mcy Performance Vesting Restricted Stock Units Three Year Performance Period Ending Years
PerformanceVestingRestrictedStockUnitsThreeYearPerformancePeriodEndingYears
2013
mcy Performance Vesting Restricted Stock Units Three Year Performance Period Ending Years
PerformanceVestingRestrictedStockUnitsThreeYearPerformancePeriodEndingYears
2014
CY2010 mcy Performance Vesting Restricted Stock Units Three Year Performance Period Ending Years
PerformanceVestingRestrictedStockUnitsThreeYearPerformancePeriodEndingYears
2012
mcy Performance Vesting Restricted Stock Units Vesting Shares Maximum
PerformanceVestingRestrictedStockUnitsVestingSharesMaximum
200250 shares
CY2010 mcy Performance Vesting Restricted Stock Units Vesting Shares Maximum
PerformanceVestingRestrictedStockUnitsVestingSharesMaximum
55000 shares
CY2011 mcy Performance Vesting Restricted Stock Units Vesting Shares Maximum
PerformanceVestingRestrictedStockUnitsVestingSharesMaximum
120000 shares
mcy Proceeds From Calls Of Available For Sale Securities Equity
ProceedsFromCallsOfAvailableForSaleSecuritiesEquity
0 USD
mcy Proceeds From Calls Of Available For Sale Securities Equity
ProceedsFromCallsOfAvailableForSaleSecuritiesEquity
923000 USD
dei Amendment Flag
AmendmentFlag
false
dei Current Fiscal Year End Date
CurrentFiscalYearEndDate
--12-31
dei Document Fiscal Period Focus
DocumentFiscalPeriodFocus
Q3
dei Document Fiscal Year Focus
DocumentFiscalYearFocus
2012
dei Document Period End Date
DocumentPeriodEndDate
2012-09-30
dei Document Type
DocumentType
10-Q
dei Entity Central Index Key
EntityCentralIndexKey
0000064996
CY2012Q4 dei Entity Common Stock Shares Outstanding
EntityCommonStockSharesOutstanding
54911377 shares
dei Entity Filer Category
EntityFilerCategory
Large Accelerated Filer
dei Entity Registrant Name
EntityRegistrantName
MERCURY GENERAL CORP

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