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61ASSURANT, INC. – 2015 Form 10-K
PART II
ITEM 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations
Net cash (used in) provided by nancing activities was
$(776,199) and $196,699 for the years ended December 31,
2014 and 2013, respectively. The cash used in nancing
activities during Twelve Months 2014 was primarily due to
repayment of $467,330 of 2004 Senior Notes, which represents
$500,000 in principal less amounts repurchased in 2013,
and the payment of a contingent liability related to the
acquisition of LSG� The cash provided by activities during
Twelve Months 2013 was due to the issuance of two series
of senior notes during Twelve Months 2013� The company
received proceeds of $698,093 from this transaction, which
represents the principal amount less the discount before
offering expenses�
The table below shows our cash outows for taxes, interest and dividends for the periods indicated:
For the Years Ended December 31,
2015 2014 2013
Income taxes paid $ 80,140 $ 247,771 $ 132,487
Interest paid on debt 54,813 68,875 70,741
Common stock dividends 94,168 77,495 74,128
TOTAL $ 229,121 $ 394,141 $ 277,356
Commitments and Contingencies
We have obligations and commitments to third parties as a result of our operations� These obligations and commitments,
as of December 31, 2015, are detailed in the table below by maturity date as of the dates indicated:
As of December 31, 2015
Total Less than 1 Year 1-3 Years 3-5 Years More than 5 Years
Contractual obligations:
Insurance liabilities(1) $ 21,510,851 $ 2,075,128 $ 1,842,377 $ 1,718,299 $ 15,875,047
Debt and related interest 1,895,031 54,812 455,250 92,125 1,292,844
Operating leases 95,638 24,590 36,526 19,578 14,944
Pension obligations and postretirement benet 762,960 64,555 125,195 145,712 427,498
Commitments:
Investment purchases outstanding:
Commercial mortgage loans on real estate 6,350 6,350 — — —
Capital contributions to real estate joint ventures 28,607 28,607 — — —
Liability for unrecognized tax benet 35,618 903 30,090 1,207 3,418
TOTAL OBLIGATIONS AND COMMITMENTS $ 24,335,055 $2,254,945 $2,489,438 $1,976,921 $17,613,751
(1) Insurance liabilities reflect estimated cash payments to be made to policyholders.
Liabilities for future policy benets and expenses of $9,466,694
and claims and benets payable of $3,896,719 have been
included in the commitments and contingencies table�
Signicant uncertainties relating to these liabilities include
mortality, morbidity, expenses, persistency, investment
returns, ination, contract terms and the timing of payments.
Letters of Credit
In the normal course of business, letters of credit are issued
primarily to support reinsurance arrangements� These letters
of credit are supported by commitments with nancial
institutions� We had $19,809 and $17,871 of letters of credit
outstanding as of December 31, 2015 and December 31,
2014, respectively�
Off-Balance Sheet Arrangements
The Company does not have any off-balance sheet
arrangements that are reasonably likely to have a material
effect on the nancial condition, results of operations,
liquidity, or capital resources of the Company�