Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2013

Summary of Significant Accounting Policies [Abstract]

Consolidation, Subsidiary, Effects of Changes

In consolidating the statutory financial statements of its insurance subsidiaries, the Company has therefore made necessary adjustments to conform their accounts with GAAP. The following table reflects a summary of all such adjustments:

	Shareholders' Equity						Net Income (Loss)
	December 31,						Years Ended December 31,
	2013			2012			2013			2012			2011
Statutory totals of insurance
company subsidiaries (a):
General	$	3,127.9		$	2,905.9		$	314.4		$	225.5		$	292.5
Title	428.6			358.1			88.7			70.3			46.7
RFIG Run-off	456.5			149.2			125.2			(285.0		)	(422.6		)
Life & Accident	67.0			71.9			3.6			3.0			4.8
Sub-total	4,080.0			3,485.1			531.9			13.8			(78.6		)
GAAP totals of non-insurance company
subsidiaries and consolidation adjustments	29.4			(111.6		)	23.2			(64.2		)	(38.7		)
Unadjusted totals	4,109.7			3,374.0			555.1			(50.4		)	(117.4		)
Adjustments to conform to GAAP statements:
Deferred policy acquisition costs	159.1			161.7			.9			(33.3		)	(30.6		)
Fair value of fixed maturity securities	220.9			552.7			—			—			—
Non-admitted assets	73.3			78.2			—			—			—
Deferred income taxes	(49.8		)	(113.9		)	(79.5		)	35.7			73.4
Mortgage contingency and DPO reserves	(479.0		)	(296.9		)	—			—			—
Title unearned premiums	432.6			390.4			42.1			30.0			14.6
Loss reserves	(432.7		)	(360.7		)	(71.8		)	(70.4		)	(49.6		)
Surplus notes	(277.5		)	(202.5		)	—			—			—
Sundry adjustments	17.9			13.0			.9			19.4			(30.9		)
Total adjustments	(334.8		)	222.3			(107.3		)	(18.2		)	(23.1		)
Consolidated GAAP totals	$	3,775.0		$	3,596.2		$	447.8		$	(68.6	)	$	(140.5	)

(a) The insurance laws of the respective states in which the Company’s insurance subsidiaries are incorporated prescribe minimum capital and surplus requirements for the lines of business they are licensed to write. For domestic property and casualty and life and accident insurance companies the National Association of Insurance Commissioners also prescribes risk-based capital ("RBC") requirements. The RBC is a measure of statutory capital in relationship to a formula-driven definition of risk relative to a company’s balance sheet and mix of business. The combined RBC ratio of our primary General insurance subsidiaries was 695% and 680% of the company action level RBC at December 31, 2013 and 2012, respectively. The minimum capital requirements for the Company’s Title Insurance subsidiaries are established by statute in the respective states of domicile. The minimum regulatory capital requirements are not significant in relationship to the recorded statutory capital of the Company’s Title and Life & Accident insurance subsidiaries. At December 31, 2013 and 2012 each of the Company’s General, Title, and Life and Accident insurance subsidiaries exceeded the minimum statutory capital and surplus requirements. Refer to Note 1(s) - Regulatory Matters for a discussion regarding the RFIG Run-off group.

Amortized Cost and Estimated Fair Values Of Fixed Maturities

The amortized cost and estimated fair values by type and contractual maturity of fixed maturity securities are shown in the following tables. Expected maturities will differ from contractual maturities since borrowers may have the right to call or repay obligations with or without call or prepayment penalties.

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Fixed Maturity Securities by Type:
December 31, 2013:
U.S. & Canadian Governments	$	1,133.0	$	36.7	$	8.7	$	1,161.1
Tax-exempt	168.1		3.7		.5		171.3
Corporate	7,176.0		268.1		64.3		7,379.8
	$	8,477.3	$	308.7	$	73.6	$	8,712.3
December 31, 2012:
U.S. & Canadian Governments	$	1,151.2	$	65.9	$	.3	$	1,216.8
Tax-exempt	380.8		11.4		.1		392.2
Corporate	6,461.0		502.1		6.0		6,957.1
	$	7,993.1	$	579.5	$	6.5	$	8,566.2

Amortized Cost and Estimated Fair Values Of Fixed Maturities By Contractual Maturities

	Amortized Cost		Estimated Fair Value
Fixed Maturity Securities Stratified by Contractual Maturity at December 31, 2013:
Due in one year or less	$	785.5	$	796.5
Due after one year through five years	3,957.0		4,145.8
Due after five years through ten years	3,544.2		3,579.4
Due after ten years	190.4		190.5
	$	8,477.3	$	8,712.3

Equity Securities Reflecting Reported Adjusted Cost, Net Of OTTI

A summary of the Company's equity securities reflecting reported adjusted cost, net of OTTI adjustments totaling $- and $131.3 at December 31, 2013 and 2012, respectively, follows:

Equity Securities:	Adjusted Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
December 31, 2013	$	632.0	$	372.7	$	.5	$	1,004.2
December 31, 2012	$	452.1	$	290.5	$	2.9	$	739.7

Gross Unrealized Losses and Fair Value, Aggregated

The following table reflects the Company's gross unrealized losses and fair value, aggregated by category and length of time that individual securities have been in an unrealized loss position. Fair value and issuer's adjusted cost comparisons follow:

	12 Months or Less				Greater than 12 Months				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
December 31, 2013:
Fixed Maturity Securities:
U.S. & Canadian Governments	$	301.7	$	8.7	$	—	$	—	$	301.7	$	8.7
Tax-exempt	10.0		.5		—		—		10.0		.5
Corporate	2,312.2		60.2		47.7		4.1		2,360.0		64.3
Subtotal	2,624.0		69.4		47.7		4.1		2,671.8		73.6
Equity Securities	31.0		.5		—		—		31.0		.5
Total	$	2,655.0	$	70.0	$	47.7	$	4.1	$	2,702.8	$	74.2
December 31, 2012:
Fixed Maturity Securities:
U.S. & Canadian Governments	$	60.3	$	.3	$	—	$	—	$	60.3	$	.3
Tax-exempt	3.7		.1		—		—		3.7		.1
Corporate	348.4		4.3		10.2		1.7		358.6		6.0
Subtotal	412.6		4.8		10.2		1.7		422.8		6.5
Equity Securities	78.9		2.9		—		—		78.9		2.9
Total	$	491.5	$	7.8	$	10.2	$	1.7	$	501.8	$	9.5

Fair Value, Assets Measured on Recurring Basis

The following tables show a summary of assets measured at fair value segregated among the various input levels described above:

	Fair Value Measurements
As of December 31, 2013:	Level 1		Level 2		Level 3		Total
Available for sale:
Fixed maturity securities:
U.S. & Canadian Governments	$	478.9	$	682.2	$	—	$	1,161.1
Tax-exempt	—		171.3		—		171.3
Corporate	—		7,369.3		10.5		7,379.8
Equity securities	1,003.4		—		.7		1,004.2
Short-term investments	$	1,120.5	$	—	$	4.2	$	1,124.8
As of December 31, 2012:
Available for sale:
Fixed maturity securities:
U.S. & Canadian Governments	$	570.9	$	645.9	$	—	$	1,216.8
Tax-exempt	—		392.2		—		392.2
Corporate	—		6,926.3		30.7		6,957.1
Equity securities	736.9		—		2.7		739.7
Short-term investments	$	1,260.2	$	—	$	4.6	$	1,264.9

Investment Income

The following table reflects the composition of net investment income, net realized gains or losses, and the net change in unrealized investment gains or losses for each of the years shown.

Years Ended December 31:	2013			2012		2011
Investment income from:
Fixed maturity securities	$	298.7		$	321.0	$	353.2
Equity securities	21.2			13.1		11.3
Short-term investments	1.1			1.9		1.5
Other sources	2.6			5.4		4.7
Gross investment income	323.7			341.6		370.9
Investment expenses (a)	4.9			5.1		6.2
Net investment income	$	318.7		$	336.5	$	364.6
Realized gains (losses) on:
Fixed maturity securities:
Gains	$	9.9		$	32.7	$	143.9
Losses	(8.2		)	—		(1.2		)
Net	1.7			32.7		142.6
Equity securities & other long-term investments	146.3			15.1		(27.0		)
Total	148.1			47.8		115.5
Income taxes (credits)(b)	51.8			16.7		37.5
Net realized gains (losses)	$	96.2		$	31.1	$	78.0
Changes in unrealized investment gains (losses) on:
Fixed maturity securities	$	(337.9	)	$	64.9	$	46.3
Less: Deferred income taxes (credits)	(117.9		)	22.6		16.0
	(219.9		)	42.2		30.3
Equity securities & other long-term investments	82.6			48.4		(35.2		)
Less: Deferred income taxes (credits)	28.9			16.8		(12.4		)
	53.7			31.5		(22.7		)
Net changes in unrealized investment gains (losses)	$	(166.2	)	$	73.8	$	7.5

__________

(a) Investment expenses consist of personnel costs and investment management and custody service fees, as well as interest incurred on funds held of $1.7, $2.0 and $1.9 for the years ended December 31, 2013, 2012 and 2011, respectively.

(b) Reflects primarily the combination of fully taxable realized investment gains or losses and judgments about the recoverability of deferred tax assets.

Capitalization of Deferred Policy Acquisition Costs

The following table shows a reconciliation of deferred acquisition costs between succeeding balance sheet dates.

Years Ended December 31:	2013			2012			2011
Deferred, beginning of year	$	165.5		$	197.6		$	230.6
Acquisition costs deferred:
Commissions - net of reinsurance	222.7			180.8			139.0
Premium taxes	93.8			86.8			77.7
Salaries and other marketing expenses	42.5			43.3			121.8
Sub-total	359.1			311.0			338.4
Amortization charged to income	(331.9		)	(343.2		)	(371.7		)
Change for the year	27.1			(32.1		)	(33.3		)
Deferred, end of year	$	192.6		$	165.5		$	197.6

Unearned Premiums

At December 31, 2013 and 2012, unearned premiums consisted of the following:

As of December 31:	2013		2012
General Insurance Group	$	1,458.9	$	1,323.8
RFIG Run-off Business	28.9		40.5
Total	$	1,487.8	$	1,364.4

Schedule of Effects of Coverage Rescissions and Claim Denials on Loss Reserves

The table below shows the estimated effects of coverage rescissions and claim denials on loss reserves and settled and incurred losses.

	2013			2012			2011
Estimated reduction in beginning reserve	$	174.9		$	313.2		$	710.3
Total incurred claims and settlement expenses reduced
(increased) by changes in estimated rescissions:
Current year	80.5			111.7			223.1
Prior year	71.9			12.2			(340.8		)
Sub-total	152.5			124.0			(117.6		)
Estimated rescission reduction in settled claims	(212.2		)	(262.3		)	(279.5		)
Estimated reduction in ending reserve	$	115.2		$	174.9		$	313.2

Schedule of Changes in Aggregate Reserves for the Company's Losses, Claims and Settlement Expenses

The following table shows an analysis of changes in aggregate reserves for the Company's losses, claims and settlement expenses for each of the years shown.

Years Ended December 31:	2013			2012			2011
Gross reserves at beginning of year	$	9,303.3		$	8,786.6		$	8,814.6
Less: reinsurance losses recoverable	2,847.0			2,908.1			2,945.3
Net reserves at beginning of year:
General Insurance	4,048.9			3,874.9			3,888.0
Title Insurance	396.4			332.0			298.0
RFIG Run-off	1,994.8			1,654.0			1,663.1
Other	15.9			17.4			20.0
Sub-total	6,456.2			5,878.5			5,869.3
Incurred claims and claim adjustment expenses:
Provisions for insured events of the current year:
General Insurance	1,857.9			1,729.6			1,575.3
Title Insurance	137.2			120.9			105.7
RFIG Run-off (a)	487.5			762.2			887.1
Other	41.0			40.3			40.2
Sub-total	2,523.7			2,653.1			2,608.5
Change in provision for insured events of prior years:
General Insurance	(23.7		)	(51.5		)	(130.9		)
Title Insurance	(3.1		)	—			—
RFIG Run-off (a)	(269.7		)	148.2			254.8
Other	(2.5		)	(1.5		)	(1.2		)
Sub-total	(299.1		)	95.1			122.6
Total incurred claims and claim adjustment expenses (a)	2,224.5			2,748.2			2,731.1
Payments:
Claims and claim adjustment expenses attributable to
insured events of the current year:
General Insurance	620.8			587.8			569.8
Title Insurance	6.0			3.0			7.9
RFIG Run-off (b)	39.4			46.6			100.5
Other	29.5			30.6			30.7
Sub-total	695.9			668.1			709.2
Claims and claim adjustment expenses attributable to
insured events of prior years:
General Insurance	928.2			916.1			887.6
Title Insurance	52.8			53.4			63.6
RFIG Run-off (b)	398.9			523.0			1,050.5
Other	8.0			9.6			10.7
Sub-total	1,388.0			1,502.3			2,012.6
Total payments (b)	2,083.9			2,170.5			2,721.9
Amount of reserves for unpaid claims and claim adjustment expenses
at the end of each year, net of reinsurance losses recoverable: (c)
General Insurance	4,334.1			4,048.9			3,874.9
Title Insurance	471.5			396.4			332.0
RFIG Run-off	1,774.2			1,994.8			1,654.0
Other	16.8			15.9			17.4
Sub-total	6,596.8			6,456.2			5,878.5
Reinsurance losses recoverable	2,836.7			2,847.0			2,908.1
Gross reserves at end of year	$	9,433.5		$	9,303.3		$	8,786.6

__________

As noted elsewhere in this report, in 2012 Old Republic's CCI insurance coverage was combined with the MI business within the overall RFIG Run-off Business. Prior periods' segmented information for the General Insurance and RFIG Run-off Business segments has therefore been reclassified to provide necessary consistency in period-to-period operating comparisons.

Excluding the reclassification of CCI from the General Insurance to the RFIG Run-off Business segment, certain elements shown in the preceding table would have been as follows:

	2013			2012			2011
Change in provision for incurred events of prior years:
General Insurance	$	(40.4	)	$	(19.8	)	$	(149.2	)
RFIG Run-off (a)	(253.0		)	116.5			273.2
Payment of claim and claim adjustment expenses attributable to
incurred events of the current and prior years:
General Insurance	1,597.5			1,577.9			1,551.1
RFIG Run-off (b)	$	389.8		$	495.7		$	1,057.4

(a) In common with all other insurance lines, RFIG Run-off mortgage guaranty settled and incurred claim and claim adjustment expenses include only those costs actually or expected to be paid by the Company. As previously noted, changes in mortgage guaranty aggregate case, IBNR, and loss adjustment expense reserves shown below and entering into the determination of incurred claim costs, take into account, among a large number of variables, claim cost reductions for anticipated coverage rescissions and claims denials.

The RFIG Run-off mortgage guaranty provision for insured events of the current year was reduced by an estimated $80.5, $111.7 and $223.1, respectively, for 2013, 2012 and 2011. The provision for insured events of prior years in 2013, 2012 and 2011 was reduced (increased) by an estimated $71.9, $12.2 and $(340.8), respectively. These changes were offset to varying degrees by differences between actual claim settlements relative to expected experience and by subsequent revisions of assumptions in regards to claim frequency, severity or levels of associated claim settlement costs which result from consideration of underlying trends and expectations.

The following table reflects the changes in net reserves between succeeding balance sheet dates.

	2013			2012			2011
Net reserve increase(decrease):
General Insurance	$	285.1		$	174.0		$	(13.1	)
Title Insurance	75.1			64.3			34.0
RFIG Run-off	(220.6		)	340.7			(9.0		)
Other	.9			(1.5		)	(2.6		)
Total	$	140.6		$	577.6		$	9.2

(b) Rescissions reduced the Company's settled losses by an estimated $212.2, $262.3, and $279.5 for 2013, 2012, and 2011, respectively. 2013 and 2012 RFIG Run-off Business claim and claim adjustment expense payments reflect the retention of the DPO within claim reserves which amounted to $551.5 and $299.5 as of the respective year-ends.

(c) Year end net IBNR reserves for each segment were as follows:

	2013		2012		2011
General Insurance	$	2,118.4	$	1,947.0	$	1,878.2
Title Insurance	407.1		336.9		262.5
RFIG Run-off	121.3		147.5		94.8
Other	4.0		4.6		4.6
Total	$	2,651.0	$	2,436.1	$	2,240.4

Schedule of Effective Income Tax Rate Reconciliation

The more significant differences, their effect on the statutory income tax rate (credit), and the resulting effective income tax rates (credits) are summarized below:

Years Ended December 31:	2013		2012		2011
Statutory tax rate (credit)	35.0	%	(35.0	)%	(35.0	)%
Tax rate increases (decreases):
Tax-exempt interest	(.4	)	(4.1	)	(5.4	)
Dividends received exclusion	(.6	)	(2.1	)	(1.0	)
Valuation allowance (see below)	—		(2.0	)	(.6	)
Goodwill impairment	—		.4		1.6
Foreign income (loss) reattribution	(.2	)	(3.5	)	1.0
Sale of subsidiary	—		(1.3	)	—
Other items - net	(.4	)	1.0		(1.2	)
Effective tax rate (credit)	33.4	%	(46.6	)%	(40.6	)%

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the Company's net deferred tax assets (liabilities) are as follows at the dates shown:

December 31:	2013			2012			2011
Deferred Tax Assets:
Losses, claims, and settlement expenses	$	286.9		$	272.4		$	231.7
Pension and deferred compensation plans	51.3			90.8			85.8
Impairment losses on investments	3.2			49.2			52.9
Net operating loss carryforward	43.7			91.0			77.2
AMT credit carryforward	9.6			25.5			29.7
Other temporary differences	50.5			67.7			50.1
Total deferred tax assets before valuation allowance	445.3			596.8			527.7
Valuation allowance	(9.6		)	(9.6		)	(12.2		)
Total deferred tax assets	435.7			587.2			515.4
Deferred Tax Liabilities:
Unearned premium reserves	42.7			35.3			29.3
Deferred policy acquisition costs	63.1			52.5			63.9
Mortgage guaranty insurers' contingency reserves	20.1			—			.4
Amortization of fixed maturity securities	4.9			6.9			7.2
Net unrealized investment gains	220.5			309.7			273.0
Title plants and records	4.9			5.0			5.0
Other temporary differences	30.6			29.6			19.7
Total deferred tax liabilities	387.1			439.2			398.7
Net deferred tax assets (liabilities)	$	48.4		$	148.1		$	116.7

Schedule of Goodwill

The following table presents the components of the Company's goodwill balance:

	General			Title		RFIG Run-off		Other		Total
January 1, 2012	$	117.5		$	44.3	$	—	$	.1	$	162.0
Acquisitions	—			—		—		—		—
Impairments	(1.3		)	—		—		—		(1.3		)
December 31, 2012	116.2			44.3		—		.1		160.7
Acquisitions	—			—		—		—		—
Impairments	—			—		—		—		—
December 31, 2013	$	116.2		$	44.3	$	—	$	.1	$	160.7

Schedule of Accumulated and Projected Benefit Obligations

The effects of these measurements and the changes in the projected benefit obligation ("PBO") are reflected below.

Years Ended December 31:	2013			2012			2011
Projected benefit obligation at beginning of year	$	525.7		$	477.8		$	425.2
Increases (decreases) during the year attributable to:
Service cost	9.5			9.4			8.7
Interest cost	21.6			21.8			22.7
Plan curtailments	(26.6		)	—			—
Actuarial (gains) losses	(32.8		)	31.5			36.7
Benefits paid	(18.1		)	(15.0		)	(15.5		)
Net increase (decrease) for the year	(46.4		)	47.8			52.6
Projected benefit obligation at end of year	$	479.3		$	525.7		$	477.8
Accumulated benefit obligation at end of year	$	479.3		$	495.4		$	443.4

Schedule of Changes in Fair Value of Plan Assets

The changes in the fair value of net assets available for plan benefits are as follows:

Years Ended December 31:	2013			2012			2011
Fair value of net assets available for plan benefits
At beginning of the year	$	352.3		$	315.4		$	297.1
Increases (decreases) during the year attributable to:
Actual return on plan assets	61.9			25.8			.2
Sponsor contributions	12.7			26.0			33.6
Benefits paid	(18.1		)	(15.0		)	(15.5		)
Net increase (decrease) for year	56.5			36.8			18.3
Fair value of net assets available for plan benefits
At end of the year	$	408.8		$	352.3		$	315.4

Schedule of Net Benefit Costs

The components of aggregate annual net periodic pension costs consisted of the following:

Years Ended December 31:	2013			2012			2011
Service cost	$	9.5		$	9.4		$	8.7
Interest cost	21.6			21.8			22.7
Curtailment loss recognized	.6			—			—
Expected return on plan assets	(26.7		)	(25.1		)	(23.7		)
Recognized loss	8.8			10.0			6.0
Prior service costs	.1			.1			.1
Net cost	$	14.1		$	16.3		$	13.9

Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss)

The pretax pension costs recognized in other comprehensive income consist of the following:

Years Ended December 31:	2013		2012			2011
Amounts arising during the period:
Net recognized gain (loss)	$	68.0	$	(30.8	)	$	(60.2	)
Plan curtailment	26.6		—			—
Reclassification adjustment to components of net periodic pension cost:
Net recognized loss	8.8		10.0			6.0
Net prior service cost	.1		.1			.1
Curtailment loss recognized	.6		—			—
Net pretax pension (costs) or gains recognized	$	104.3	$	(20.6	)	$	(54.0	)

Schedule of Net Periodic Benefit Cost Not yet Recognized

The amounts included in accumulated other comprehensive income that have not yet been recognized as components of net periodic pension cost consist of the following:

As of December 31:	2013			2012
Net recognized loss	$	(48.3	)	$	(151.9	)
Net prior service cost	—			(.7		)
Total	$	(48.3	)	$	(152.7	)

Schedule of Assumptions Used

The projected benefit obligations and net periodic benefit costs for the plans were determined using the following weighted-average assumptions:

	Projected Benefit Obligation				Net Periodic Benefit Cost
As of December 31:	2013		2012		2013		2012		2011
Settlement discount rates	5.00	%	4.17	%	4.17	%	4.66	%	5.46	%
Rates of compensation increase	N/A		3.22	%	3.22	%	4.25	%	4.25	%
Long-term rates of return on plans' assets	N/A		N/A		7.56	%	7.81	%	7.94	%

Schedule of Weighted Average Asset Allocations Of Benefit Plans

The weighted-average asset allocations of the Plans were as follows:

					Investment Policy Asset Allocation % Range Target
As of December 31:	2013		2012
Equity securities:
Common shares of Company stock	12.0	%	8.3	%
Other	50.9		48.5
Sub-total	62.9		56.8		30% to 70%
Fixed maturity securities	29.5		35.2		30% to 70%
Other	7.6		8.0		1% to 20%
Total	100.0	%	100.0	%

Schedule of Allocation of Plan Assets

The following tables present a summary of the Plans' assets segregated among the various input levels described in Note 1(d).

	Fair Value Measurements
As of December 31, 2013:	Level 1		Level 2		Level 3		Total
Equity securities:
Common shares of Company stock	$	48.8	$	—	$	—	$	48.8
Other	189.1		18.9		—		208.1
Sub-total	238.0		18.9		—		256.9
Fixed maturity securities	10.5		109.9		—		120.4
Other	16.5		7.3		7.4		31.3
Total	$	265.1	$	136.3	$	7.4	$	408.8
As of December 31, 2012:
Equity securities:
Common shares of Company stock	$	29.0	$	—	$	—	$	29.0
Other	154.0		16.9		—		171.0
Sub-total	183.1		16.9		—		200.1
Fixed maturity securities	1.5		122.5		—		124.0
Other	10.6		9.3		8.1		28.1
Total	$	195.3	$	148.8	$	8.1	$	352.3

Schedule of Profit Sharing and Other Incentive Compensation Programs

The Company has a number of profit sharing and other incentive compensation programs for the benefit of a substantial number of its employees. The costs related to such programs are summarized below:

Years Ended December 31:	2013		2012		2011
Employees Savings and Stock Ownership Plan "ESSOP"	$	7.8	$	5.3	$	5.9
Other profit sharing plans	12.1		12.9		13.4
Cash and deferred incentive compensation	$	21.6	$	20.5	$	19.5

Schedule of Calculation of Numerator and Denominator in Earnings Per Share

The following table provides a reconciliation of net income (loss) and the number of shares used in basic and diluted earnings per share calculations.

Years Ended December 31:	2013		2012			2011
Numerator:
Net income (loss)	$	447.8	$	(68.6	)	$	(140.5	)
Numerator for basic earnings per share -
income (loss) available to common stockholders	447.8		(68.6		)	(140.5		)
Adjustment for interest expense incurred on
assumed conversion of convertible notes	14.6		—			—
Numerator for diluted earnings per share -
income (loss) available to common stockholders
after assumed conversion of convertible notes	$	462.4	$	(68.6	)	$	(140.5	)
Denominator:
Denominator for basic earnings per share -
weighted-average shares (a)	257,443,999		255,812,888			255,045,210
Effect of dilutive securities - stock based compensation awards	784,080		—			—
Effect of dilutive securities - convertible senior notes	35,455,956		—			—
Denominator for diluted earnings per share -
adjusted weighted-average shares
and assumed conversion of convertible notes (a)	293,684,035		255,812,888			255,045,210
Earnings per share: Basic	$	1.74	$	(.27	)	$	(.55	)
Diluted	$	1.57	$	(.27	)	$	(.55	)
Anti-dilutive common stock equivalents
excluded from earning per share computations:
Stock based compensation awards	7,563,456		14,543,835			16,007,624
Convertible senior notes	—		35,409,303			56,464,160
Total	7,563,456		49,953,138			72,471,784

__________

(a) In calculating earnings per share, pertinent accounting rules require that common shares owned by the Company's Employee Savings and Stock Ownership Plan that are as yet unallocated to participants in the plan be excluded from the calculation. Such shares are issued and outstanding, and have the same voting and other rights applicable to all other common shares.

Schedule of Stock Based Compensation and Tax Benefit

The following table presents the stock based compensation expense and income tax benefit recognized in the financial statements:

Years Ended December 31:	2013		2012		2011
Stock based compensation expense	$	1.6	$	1.7	$	3.0
Income tax benefit	$	.5	$	.6	$	1.0

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

	2013		2012		2011
Expected volatility	.33		.32		.31
Expected dividends	5.99	%	6.88	%	5.95	%
Expected term (in years)	7		7		7
Risk-free rate	1.19	%	1.74	%	2.73	%

Schedule of Share-based Compensation, Stock Options, Activity

A summary of stock option activity under the plan as of December 31, 2013, 2012 and 2011, and changes in outstanding options during the years then ended is presented below:

	As of and for the Years Ended December 31,
	2013				2012				2011
	Shares		Weighted Average Exercise Price		Shares		Weighted Average Exercise Price		Shares		Weighted Average Exercise Price
Outstanding at beginning of year	14,293,149		$	16.75	15,679,915		$	17.25	16,560,483		$	17.39
Granted	922,500		12.57		974,500		10.80		1,064,500		12.33
Exercised	897,909		12.22		14,850		10.48		31,113		12.22
Forfeited and expired	1,510,468		15.01		2,346,416		17.66		1,913,955		15.85
Outstanding at end of year	12,807,272		16.97		14,293,149		16.75		15,679,915		17.25
Exercisable at end of year	10,582,298		$	18.03	12,032,624		$	17.74	13,262,682		$	18.21
Weighted average fair value of
options granted during the year (a)	$	1.94	per share		$	1.46	per share		$	1.99	per share

__________

(a) Based on the Black-Scholes option pricing model and the assumptions outlined above.

Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding

A summary of stock options outstanding and exercisable at December 31, 2013 follows:

					Options Outstanding				Options Exercisable
						Weighted - Average				Weighted Average Exercise Price
Ranges of Exercise Prices			Year(s) Of Grant		Number Out- Standing	Remaining Contractual Life	Exercise Price		Number Exercisable
$19.32	to	$20.02	2004		1,850,852	0.25	$	19.33	1,850,852	$	19.33
$18.41	to	$20.87	2005		1,572,059	1.25	18.45		1,572,059	18.45
$21.36	to	$22.35	2006		2,089,525	2.25	22.00		2,089,525	22.00
$21.78	to	$23.16	2007		1,971,475	3.25	21.78		1,971,475	21.78
$7.73	to	$12.95	2008		1,048,370	4.25	12.93		1,048,370	12.93
$10.48			2009		698,133	5.25	10.48		698,133	10.48
$12.08			2010		690,225	6.25	12.08		490,234	12.08
$10.51	to	$14.31	2010	(a)	67,745	0.25	12.96		67,745	12.96
$12.33			2011		945,413	7.25	12.33		442,146	12.33
$10.80			2012		953,475	8.25	10.80		246,711	10.80
$12.57			2013		920,000	9.25	12.57		105,048	12.57
Total					12,807,272		$	16.97	10,582,298	$	18.03

__________

(a) Represents the replacement options issued pursuant to the PMA merger.

Schedule of Cash Proceeds Received from Share-based Payment Awards

The cash received from stock option exercises, the total intrinsic value of stock options exercised, and the actual tax benefit realized for the tax deductions from option exercises are as follows:

	2013		2012		2011
Cash received from stock option exercise	$	10.9	$	.1	$	.3
Intrinsic value of stock options exercised	2.9		—		—
Actual tax benefit realized for tax deductions from stock options exercised	$	1.1	$	—	$	—