Assurant 2014 Annual Report Download - page 150

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ASSURANT, INC. – 2014 Form 10-KF-62
25 Commitments and Contingencies
24. Quarterly Results of Operations (Unaudited)
The Company’s quarterly results of operations for the years ended December 31, 2014 and 2013 are summarized in the
tables below:
Three Month Periods Ended
March 31 June 30 September 30 December 31
2014
Total revenues $ 2,448,372 $ 2,608,101 $ 2,702,488 $ 2,622,692
Income before provision for income taxes 235,253 193,787 224,751 90,346
Net income 137,245 143,610 140,297 49,755
Basic per share data:
Income before provision for income taxes $ 3.23 $ 2.67 $ 3.11 $ 1.27
Net income $ 1.88 $ 1.98 $ 1.94 $ 0.70
Diluted per share data:
Income before provision for income taxes $ 3.18 $ 2.63 $ 3.08 $ 1.25
Net income $ 1.86 $ 1.95 $ 1.92 $ 0.69
March 31 June 30 September 30 December 31
2013
Total revenues $ 2,150,623 $ 2,237,766 $ 2,258,650 $ 2,400,618
Income before provision for income taxes 206,424 210,767 193,971 178,537
Net income 117,780 133,523 128,788 108,816
Basic per share data:
Income before provision for income taxes $ 2.58 $ 2.72 $ 2.57 $ 2.42
Net income $ 1.47 $ 1.72 $ 1.70 $ 1.48
Diluted per share data:
Income before provision for income taxes $ 2.55 $ 2.69 $ 2.54 $ 2.39
Net income $ 1.46 $ 1.70 $ 1.68 $ 1.46
Fourth quarter 2014 results were primarily affected by increased claims in the Assurant Health segment, decreased net income
in the Assurant Specialty Property segment due to normalization of our lender-placed business and a previously disclosed
$19,400 net loss on the sale of ARIC.
25. Commitments and Contingencies
The Company and its subsidiaries lease offi ce space and equipment under operating lease arrangements. Certain facility
leases contain escalation clauses based on increases in the lessors’ operating expenses. At December 31, 2014, the aggregate
future minimum lease payments under these operating lease agreements that have initial or non-cancelable terms in excess
of one year are:
2015 $ 30,587
2016 24,258
2017 20,164
2018 16,571
2019 11,399
Thereafter 23,272
Total minimum future lease payments(a) $ 126,251
(a) Minimum future lease payments exclude $14,555 of sublease rental income.
Rent expense was $30,260, $27,271 and $29,644 for 2014, 2013
and 2012, respectively. Sublease income was $895 in 2014.
In the normal course of business, letters of credit are issued
primarily to support reinsurance arrangements in which
the Company is the reinsurer. These letters of credit are
supported by commitments under which the Company is
required to indemnify the fi nancial institution issuing the
letter of credit if the letter of credit is drawn. The Company
had $17,871 and $17,343 of letters of credit outstanding as
of December 31, 2014 and 2013, respectively.
As previously disclosed, during 2013, the Company and two of
its wholly owned subsidiaries in the Assurant Specialty Property
segment, American Security Insurance Company (“ASIC”) and
American Bankers Insurance Company of Florida (“ABIC”),