XML 54 R13.htm IDEA: XBRL DOCUMENT v2.4.0.6
General Information (Policies)
6 Months Ended
Jun. 30, 2012
General Information [Abstract]  
Recently Issued Accounting Guidance

Goodwill

 

An indicator of impairment of goodwill exists when the fair value of a reporting unit is less than its carrying value. We conducted our annual goodwill impairment test as of June 30, 2012, which is consistent with the timeframe for our annual assessment in prior years. For this assessment, we applied a new accounting standard that was effective for us in 2012. That guidance permits us to assess qualitative factors to determine whether it is more likely than not that the fair value of each of our reporting units is less than its carrying amount. Based on our assessment, we determined that it was more likely than not that the fair value of each of our five reporting units exceeded its carrying amount as of June 30, 2012.

 

Accounting Guidance Adopted in 2012

 

Deferred Policy Acquisition Costs

 

A new accounting standard clarifies the definition of acquisition costs incurred by an insurance company and limits capitalization to such costs directly related to renewing or acquiring new insurance contracts. Under the new standard, we expense all costs incurred for unsuccessful marketing or underwriting efforts, along with indirect costs, as incurred. We adopted this guidance on January 1, 2012 through retrospective adjustment of the capitalized deferred policy acquisition costs, deferred income taxes and consolidated shareholders' equity in our prior years' consolidated financial statements. We also reclassified expenses in our prior years' consolidated income statements to reflect the new definition of policy acquisition costs. Application of the new guidance did not impact our reported consolidated net earnings or cash flows in prior years. The following line items in our consolidated financial statements were affected by this change in accounting guidance: