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ASSURANT, INC.2012 Form10-KF-6
Consolidated Statements of Cash Flows
YEARS ENDED DECEMBER 31, 2012, 2011 AND 2010
(in thousands)
Years Ended December31,
2012 2011 2010
Operating activities
Net income $ 483,705 $ 538,956 $ 278,607
Adjustments to reconcile net income to net cash provided byoperating activities:
Change in reinsurance recoverable (726,432) (417,693) (761,453)
Change in premiums and accounts receivable (185,273) (105,171) (35,318)
Change in deferred acquisition costs and value of business acquired (358,637) (145,091) 54,709
Change in other intangible assets (43,957) (31,585) (83,303)
Change in accrued investment income 4,832 (7,532) 9,844
Change in insurance policy reserves and expenses 1,353,054 732,003 573,719
Change in accounts payable and other liabilities 33,775 124,658 (58,361)
Change in commissions payable 79,378 (14,364) 56,075
Change in reinsurance balances payable (27,570) 25,730 7,738
Change in funds withheld under reinsurance (4,286) (285) (4,191)
Change in securities classi ed as trading (2,874) 32,777 (7,889)
Change in income taxes (5,800) 24,914 (25,700)
Change in tax valuation allowance 2,937 (80,584) 9,049
Amortization of deferred gain on disposal of businesses (18,413) (20,461) (10,406)
Depreciation and amortization 124,387 129,391 126,602
Net realized gains on investments (64,353) (32,580) (48,403)
Stock based compensation expense 37,589 36,888 34,591
Income on sale of Joint Real Estate Ventures (35,023) (6,023) 0
Change in tax bene t from share-based payment arrangements (1,728) 3,267 6,712
Goodwill impairment 0 0 306,381
Other intangible asset impairment 26,458 0 47,612
Other 7,929 68,089 64,127
NET CASH PROVIDED BYOPERATING ACTIVITIES 679,698 855,304 540,742
Investing activities
Sales of:
Fixed maturity securities available for sale 2,197,475 1,556,894 1,774,912
Equity securities available for sale 120,729 120,445 94,798
Other invested assets 103,834 50,600 51,812
Property and equipment and other 2,375 3,823 380
Subsidiary, net of cash transferred(1) 1,364 0 0
Maturities, prepayments, and scheduled redemption of:
Fixed maturity securities available for sale 999,591 949,950 867,850
Commercial mortgage loans on real estate 126,768 96,552 127,814
Purchase of:
Fixed maturity securities available for sale (3,729,316) (2,643,277) (2,921,075)
Equity securities available for sale (186,962) (34,556) (23,702)
Commercial mortgage loans on real estate (126,578) (88,649) (36,226)
Other invested assets (41,640) (66,499) (76,157)
Property and equipment and other (56,457) (35,747) (51,211)
Subsidiary, net of cash transferred(1) (3,500) (45,080) (11,560)
Change in short-term investments 140,309 (90,368) 95,768
Change in policy loans 1,345 1,887 373
Change in collateral held/pledged under securities agreements 780 27,437 97,348
NET CASH USED IN INVESTING ACTIVITIES 449,883 196,588 8,876
Financing activities
Repayment of mandatorily redeemable preferred stock 0 (5,000) (3,160)
Change in tax bene t from share-based payment arrangements 1,728 (3,267) (6,712)
Acquisition of common stock (412,196) (533,848) (522,546)
Dividends paid (69,393) (67,385) (69,618)
Change in obligation under securities agreements (780) (27,437) (97,348)
Change in receivables under securities loan agreements 0 14,370 (14,370)
Change in obligations to return borrowed securities 0 (14,281) 14,281
NET CASH USED IN FINANCING ACTIVITIES 480,641 636,848 699,473
E ect of exchange rate changes on cash and cash equivalents (6,483) (5,671) (429)
Change in cash and cash equivalents (257,309) 16,197 (168,036)
Cash and cash equivalents at beginning of period 1,166,713 1,150,516 1,318,552
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 909,404 $ 1,166,713 $ 1,150,516
Supplemental information:
Income taxes paid, net of refunds $ 272,868 $ 218,372 $ 341,148
Interest paid on mandatorily redeemable preferred stock and debt $ 60,188 $ 60,244 $ 60,539
(1) 2012 includes the sale of one immaterial subsidiary. 2011 includes the acquisition of SureDeposit. 2010 includes three acquisitions that individually and in the aggregate are
immaterial.
See the accompanying notes to the consolidated financial statements