Progressive 2012 Annual Report Download - page 37

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For cases that have settled, but for which settlement is not complete, an accrual has been established at our best
estimate of the exposure. Settlements that are complete are fully reflected in our financial statements. The amounts
accrued or paid for these settlements were not material to our consolidated financial condition, cash flows, or results
of operations.
Cases settled during 2012, include:
• One putative class action lawsuit that challenged Progressive’s use of certain automated database vendors or
software to assist in the adjustment of bodily injury claims where the plaintiffs allege that these databases or
software systematically undervalue the claims; an accrual has been established.
Cases settled during 2011, include:
• One putative class action lawsuit that challenged the labor rates our insurance subsidiaries pay to auto body repair
shops; the case was settled and paid on an individual basis in 2011.
• One class action lawsuit certified for settlement that alleged Progressive charged insureds for illusory uninsured
motorist/underinsured motorist coverage on multiple vehicle policies; an accrual was established and the majority
of this settlement was paid in 2012.
Cases settled during 2010, include:
• One putative class action lawsuit challenging our notice of cancellation form for nonpayment of premium and
subsequent denial of automobile coverage; an accrual was established and final payments were made in 2012.
13. COMMITMENTS AND CONTINGENCIES
We have certain noncancelable operating lease commitments with lease terms greater than one year for property and
computer equipment. The minimum commitments under these agreements at December 31, 2012, were as follows:
(millions) Commitments
2013 $ 47.1
2014 38.8
2015 29.6
2016 18.2
2017 8.3
Thereafter 9.5
Total $151.5
Some of the leases have options to renew at the end of the lease periods. The expense we incurred for the leases
disclosed above, as well as other operating leases that may be cancelable or have terms less than one year, was:
(millions) Expense
2012 $71.9
2011 80.8
2010 96.7
We also have certain noncancelable purchase obligations. The minimum commitment under these agreements at
December 31, 2012, was $246.7 million.
As of December 31, 2012, we had no open investment funding commitments; we had no uncollateralized lines or letters of
credit as of December 31, 2012 or 2011.
App.-A-37