XML 49 R22.htm IDEA: XBRL DOCUMENT v3.3.0.814
Accounting Developments (Tables)
 9 Months Ended
Sep. 30, 2015
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]  
Schedule of New Accounting Pronouncements
Accounting Updates Adopted in 2015:
Accounting Standards Codification (ASC)
 
Description
 
Date of Adoption
 
Effect on Financial Statements
ASC 860 "Transfers and Servicing"
 
This update changed the accounting for repurchase-to-maturity transactions and linked repurchase financings to secured borrowing accounting, which is consistent with the accounting for other repurchase agreements. The update also required disclosures for repurchase agreements, securities lending transactions, and repurchase-to-maturity transactions.
 
January 1, 2015, except for certain disclosures, which were effective April 1, 2015.
 
The adoption of this update expanded our disclosures, but had no effect on our financial position or results of operations.
 
 
 
 
 
 
 
ASC 323 "Investments - Equity Method and Joint Ventures"
 
This update permitted entities to make an accounting policy election to account for investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). Additional disclosures concerning investments in qualified affordable housing projects were also required. We elected to adopt this guidance and applied the amendments in the update retrospectively.
 
January 1, 2015
 
The cumulative effect at January 1, 2014, was a $19.2 million reduction in stockholders' equity. The following table summarizes the effects of our retrospective adoption on periods reported herein.


 
 Historical
 
 
 
Effect
 
 Historical
 
 
 
Effect
 
 Accounting
 
 As
 
of
 
 Accounting
 
 As
 
of
 
 Method
 
 Adjusted
 
 Change
 
 Method
 
 Adjusted
 
 Change
 
(in millions of dollars, except share data)
 
Three Months Ended September 30, 2014
 
Nine Months Ended September 30, 2014
Consolidated Statements of Income
 
 
 
 
 
 
 
 
 
 
 
Net Investment Income
$
606.4

 
$
611.3

 
$
4.9

 
$
1,848.0

 
$
1,859.5

 
$
11.5

Income Tax - Current
58.8

 
66.8

 
8.0

 
167.1

 
191.2

 
24.1

Income Tax - Deferred
32.2

 
31.1

 
(1.1
)
 
125.5

 
121.1

 
(4.4
)
Net Income
221.1

 
219.1

 
(2.0
)
 
692.5

 
684.3

 
(8.2
)
 
 
 
 
 
 
 
 
 
 
 
 
Net Income Per Common Share
 
 
 
 
 
 
 
 
 
 
 
Basic
$
0.87

 
$
0.86

 
$
(0.01
)
 
$
2.70

 
$
2.67

 
$
(0.03
)
Assuming Dilution
$
0.87

 
$
0.86

 
$
(0.01
)
 
$
2.69

 
$
2.66

 
$
(0.03
)
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated Statements of Comprehensive Income
 
 
 
 
 
 
 
 
 
 
 
Net Income
$
221.1

 
$
219.1

 
$
(2.0
)
 
$
692.5

 
$
684.3

 
$
(8.2
)
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated Statements of Cash Flows
 
 
 
 
 
 
 
 
 
 
 
Net Income
 
 
 
 
 
 
$
692.5

 
$
684.3

 
$
(8.2
)
Change in Income Taxes
 
 
 
 
 
 
188.7

 
208.4

 
19.7

Non-cash Components of Net Investment Income
 
 
 
 
 
 
(129.4
)
 
(140.9
)
 
(11.5
)
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2014
 
September 30, 2014
Consolidated Balance Sheets
 
 
 
 
 
 
 
 
 
 
 
Other Long-term Investments
$
591.9

 
$
545.0

 
$
(46.9
)
 
$
558.8

 
$
516.7

 
$
(42.1
)
Deferred Income Tax
78.4

 
62.0

 
(16.4
)
 
432.7

 
418.0

 
(14.7
)
Retained Earnings
7,332.8

 
7,302.3

 
(30.5
)
 
8,658.0

 
8,630.6

 
(27.4
)