Discontinued Operations

12 Months Ended

Dec. 31, 2013

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

NOTE 19. DISCONTINUED OPERATIONS

The Company accounts for Kemper’s subsidiary, FAF, and the Company’s former Unitrin Business Insurance operations as discontinued operations.

Summary financial information included in Income from Discontinued Operations for the years endedDecember 31, 2013, 2012 and 2011 is presented below:

DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS	2013			2012			2011
Interest, Loan Fees and Earned Discounts	$	—		$	—		$	31.8
Other Automobile Finance Revenues	—			—			1.4
Gain on Sale of Loan Portfolios	—			12.9			4.5
Total Automobile Finance Revenues	—			12.9			37.7
Net Investment Income	—			—			0.5
Net Realized Gains on Sales of Investments	—			—			0.4
Total Revenues Included in Discontinued Operations	$	—		$	12.9		$	38.6
Income (Loss) from Discontinued Operations before Income Taxes:
Results of Operations	$	—		$	(0.2	)	$	18.7
Gain on Sale of Loan Portfolios	—			12.9			4.5
Change in Estimate of Retained Liabilities Arising from Discontinued Operations	4.9			6.2			(3.7		)
Income from Discontinued Operations before Income Taxes	4.9			18.9			19.5
Income Tax Expense	(1.7		)	(7.3		)	(6.7		)
Income from Discontinued Operations	$	3.2		$	11.6		$	12.8
Income from Discontinued Operations Per Unrestricted Share:
Basic	$	0.06		$	0.20		$	0.21
Diluted	$	0.06		$	0.20		$	0.21

NOTE 19. DISCONTINUED OPERATIONS (Continued)

During 2011, FAF sold its active portfolio of automobile loan receivables at a gain of $4.5 million, net of transaction and other costs, while retaining its inactive portfolio of loans that had been previously charged-off (the “Inactive Portfolio”). The Inactive Portfolio was not carried on the Company’s Consolidated Balance Sheet. During 2012, FAF sold $283 million of loans in the Inactive Portfolio at a gain of $12.9 million, net of transaction, shutdown and other costs of $13.3 million, of which $1.0 million was unpaid at December 31, 2013.

In 2008, the Company sold its Unitrin Business Insurance operations. The Company retained Property and Casualty Insurance Reserves for unpaid insured losses that occurred prior to the date of the sale. Property and Casualty Insurance Reserves reported in the Company’s Consolidated Balance Sheets include $82.0 million and $99.2 million at December 31, 2013 and 2012, respectively, for the retained liabilities. In accordance with GAAP, changes in the Company’s estimate of such retained liabilities after the sale are reported as a separate component of the results of discontinued operations. See Note 5, “Property and Casualty Insurance Reserves,” to the Consolidated Financial Statements.