Assurant 2010 Annual Report Download - page 33

27ASSURANT, INC.  2010 Form 10K
PART II
ITEM 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations
As of and for the years ended December 31,
2010 2009 2008 2007 2006
Earnings per share:
Basic
Net income before cumulative eff ect of change
in accounting principle $ 2.52 $ 3.65 $ 3.79 $ 5.45 $ 5.64
Cumulative eff ect of change in accounting principle — — — — 0.01
Net income $ 2.52 $ 3.65 $ 3.79 $ 5.45 $ 5.65
Diluted
Net income before cumulative eff ect of change
in accounting principle $ 2.50 $ 3.63 $ 3.76 $ 5.38 $ 5.55
Cumulative eff ect of change in accounting principle — — — — 0.01
Net income $ 2.50 $ 3.63 $ 3.76 $ 5.38 $ 5.56
Dividends per share $ 0.63 $ 0.59 $ 0.54 $ 0.46 $ 0.38
Share data:
Weighted average shares outstanding used in
per share calculations 110,632,551 118,036,632 118,005,967 119,934,873 127,000,784
Plus: Dilutive securities 840,663 459,008 968,712 1,624,694 1,934,251
Weighted average shares used in diluted per share
calculations 111,473,214 118,495,640 118,974,679 121,559,567 128,935,035
As of and for the years ended December 31,
2010 2009 2008 2007 2006
Selected Consolidated Balance Sheet Data:
Cash and cash equivalents and investments $ 14,655,994 $ 14,476,384 $ 13,107,476 $ 14,552,115 $ 13,416,817
Total assets $ 26,397,018 $ 25,860,667 $ 24,514,586 $ 26,750,316 $ 25,165,148
Policy liabilities (6) $ 16,520,321 $ 15,869,524 $ 15,806,235 $ 15,903,289 $ 14,513,106
Debt $ 972,164 $ 972,058 $ 971,957 $ 971,863 $ 971,774
Mandatorily redeemable preferred stock $ 5,000 $ 8,160 $ 11,160 $ 21,160 $ 22,160
Total stockholder’s equity $ 4,780,537 $ 4,853,249 $ 3,709,505 $ 4,088,903 $ 3,832,597
Per share data:
Total book value per share (7) $ 46.31 $ 41.27 $ 31.53 $ 34.65 $ 31.22
(1) Included in net realized gains (losses) are other-than-temporary impairments of $11,167, $38,660, $340,153 and $48,184 for 2010, 2009, 2008 and 2007, respectively. During
2006, we recorded an investment gain of $98,342 related to the sale of our equity interest in PHCS.
(2) During 2008, we incurred losses of $132,615 associated with hurricanes Gustav and Ike.
(3) Following the completion of our annual goodwill impairment analysis, we recorded an impairment charge of $306,381 related to Assurant Employee Benefits and Assurant Health
and a charge of $83,000 related to Assurant Employee Benefits during the fourth quarters of 2010 and 2009, respectively. The impairment charges resulted in a decrease to net income
but did not have any related tax benefit.
(4) During 2008, we recorded a $84,864 tax benefit due to the sale of a non-operating subsidiary and the related deferred tax assets on a capital loss carryover.
(5) On January 1, 2006, we adopted the share based compensation guidance. As a result, we recognized a cumulative adjustment of $1,547.
(6) Policy liabilities include future policy benefits and expenses, unearned premiums and claims and benefits payable.
(7) Total stockholders’ equity divided by the basic shares of common stock outstanding. At December 31, 2010, 2009 and 2008 there were 103,227,238, 117,591,250, and
117,640,936 shares, respectively, of common stock outstanding. At December 31, 2007 and 2006 there were 118,012,036 and 122,772,350 shares of common stock outstanding.
ITEM 7 Management’s Discussion and Analysis
of Financial Condition and Results of Operations
 e following discussion and analysis of our fi nancial condition and
results of operations should be read in conjunction with our consolidated
fi nancial statements and accompanying notes which appear elsewhere
in this report. It contains forward-looking statements that involve
risks and uncertainties. Our actual results may diff er materially from
those anticipated in these forward-looking statements as a result of
various factors, including those discussed below and elsewhere in this
report, particularly under the headings “Item 1A—Risk Factors” and
“Forward-Looking Statements.”