Ohio | 31-0746871 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
6200 S. Gilmore Road, Fairfield, Ohio | 45014-5141 | |
(Address of principal executive offices) | (Zip code) |
(In millions except per share data) | September 30, | December 31, | ||||||
2013 | 2012 | |||||||
ASSETS | ||||||||
Investments | ||||||||
Fixed maturities, at fair value (amortized cost: 2013—$8,502; 2012—$8,222) | $ | 9,038 | $ | 9,093 | ||||
Equity securities, at fair value (cost: 2013—$2,471; 2012—$2,369) | 3,984 | 3,373 | ||||||
Other invested assets | 68 | 68 | ||||||
Total investments | 13,090 | 12,534 | ||||||
Cash and cash equivalents | 511 | 487 | ||||||
Investment income receivable | 115 | 115 | ||||||
Finance receivable | 79 | 75 | ||||||
Premiums receivable | 1,393 | 1,214 | ||||||
Reinsurance recoverable | 584 | 615 | ||||||
Prepaid reinsurance premiums | 26 | 26 | ||||||
Deferred policy acquisition costs | 576 | 470 | ||||||
Land, building and equipment, net, for company use (accumulated depreciation: 2013—$412; 2012—$397) | 211 | 217 | ||||||
Other assets | 54 | 61 | ||||||
Separate accounts | 700 | 734 | ||||||
Total assets | $ | 17,339 | $ | 16,548 | ||||
LIABILITIES | ||||||||
Insurance reserves | ||||||||
Loss and loss expense reserves | $ | 4,307 | $ | 4,230 | ||||
Life policy and investment contract reserves | 2,373 | 2,295 | ||||||
Unearned premiums | 2,026 | 1,792 | ||||||
Other liabilities | 639 | 660 | ||||||
Deferred income tax | 542 | 453 | ||||||
Note payable | 104 | 104 | ||||||
Long-term debt and capital lease obligations | 832 | 827 | ||||||
Separate accounts | 700 | 734 | ||||||
Total liabilities | 11,523 | 11,095 | ||||||
Commitments and contingent liabilities (Note 12) | — | — | ||||||
SHAREHOLDERS' EQUITY | ||||||||
Common stock, par value—$2 per share; (authorized: 2013 and 2012—500 million shares; issued and outstanding: 2013—198 million shares and 2012—197 million shares) | 396 | 394 | ||||||
Paid-in capital | 1,177 | 1,134 | ||||||
Retained earnings | 4,214 | 4,021 | ||||||
Accumulated other comprehensive income | 1,267 | 1,129 | ||||||
Treasury stock at cost (2013 and 2012—34 million shares) | (1,238 | ) | (1,225 | ) | ||||
Total shareholders' equity | 5,816 | 5,453 | ||||||
Total liabilities and shareholders' equity | $ | 17,339 | $ | 16,548 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
(In millions except per share data) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
REVENUES | ||||||||||||||||
Earned premiums | $ | 992 | $ | 889 | $ | 2,877 | $ | 2,605 | ||||||||
Investment income, net of expenses | 133 | 132 | 392 | 395 | ||||||||||||
Realized investment gains, net | 22 | 10 | 77 | 29 | ||||||||||||
Fee revenues | 2 | 1 | 6 | 4 | ||||||||||||
Other revenues | 3 | 3 | 7 | 8 | ||||||||||||
Total revenues | 1,152 | 1,035 | 3,359 | 3,041 | ||||||||||||
BENEFITS AND EXPENSES | ||||||||||||||||
Insurance losses and policyholder benefits | 642 | 571 | 1,841 | 1,840 | ||||||||||||
Underwriting, acquisition and insurance expenses | 312 | 296 | 919 | 857 | ||||||||||||
Interest expense | 13 | 14 | 40 | 41 | ||||||||||||
Other operating expenses | 3 | 2 | 12 | 10 | ||||||||||||
Total benefits and expenses | 970 | 883 | 2,812 | 2,748 | ||||||||||||
INCOME BEFORE INCOME TAXES | 182 | 152 | 547 | 293 | ||||||||||||
PROVISION FOR INCOME TAXES | ||||||||||||||||
Current | 46 | 34 | 137 | 60 | ||||||||||||
Deferred | 5 | 7 | 15 | 4 | ||||||||||||
Total provision for income taxes | 51 | 41 | 152 | 64 | ||||||||||||
NET INCOME | $ | 131 | $ | 111 | $ | 395 | $ | 229 | ||||||||
PER COMMON SHARE | ||||||||||||||||
Net income—basic | $ | 0.80 | $ | 0.69 | $ | 2.42 | $ | 1.41 | ||||||||
Net income—diluted | 0.79 | 0.68 | 2.39 | 1.40 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
(In millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
NET INCOME | $ | 131 | $ | 111 | $ | 395 | $ | 229 | ||||||||
OTHER COMPREHENSIVE INCOME | ||||||||||||||||
Unrealized gains on investments available-for-sale, net of tax of $22, $89, $61 and $150, respectively | 40 | 164 | 113 | 278 | ||||||||||||
Amortization of pension actuarial loss and prior service cost, net of tax of $1, $1, $3 and $2, respectively | 1 | 1 | 4 | 3 | ||||||||||||
Change in life deferred acquisition costs, life policy reserves and other, net of tax of $2, $(2), $10 and $(5), respectively | 5 | (4 | ) | 21 | (11 | ) | ||||||||||
Other comprehensive income, net of tax | 46 | 161 | 138 | 270 | ||||||||||||
COMPREHENSIVE INCOME | $ | 177 | $ | 272 | $ | 533 | $ | 499 |
Common Stock | Accumulated Other | Total Share- | |||||||||||||||||||||||||
(In millions) | Outstanding Shares | Amount | Paid-in Capital | Retained Earnings | Comprehensive Income | Treasury Stock | holders' Equity | ||||||||||||||||||||
Balance as reported December 31, 2011 | 162 | $ | 393 | $ | 1,096 | $ | 3,885 | $ | 901 | $ | (1,220 | ) | $ | 5,055 | |||||||||||||
Cumulative effect of a change in accounting for deferred policy acquisition costs, net of tax | — | — | — | (22 | ) | — | — | (22 | ) | ||||||||||||||||||
Balance as adjusted December 31, 2011 | 162 | 393 | 1,096 | 3,863 | 901 | (1,220 | ) | 5,033 | |||||||||||||||||||
Net income | — | — | — | 229 | — | — | 229 | ||||||||||||||||||||
Other comprehensive income, net | — | — | — | — | 270 | — | 270 | ||||||||||||||||||||
Dividends declared | — | — | — | (196 | ) | — | — | (196 | ) | ||||||||||||||||||
Stock-based awards exercised and vested | 1 | 1 | 10 | — | — | 2 | 13 | ||||||||||||||||||||
Stock-based compensation | — | — | 12 | — | — | — | 12 | ||||||||||||||||||||
Purchases | — | — | — | — | — | (7 | ) | (7 | ) | ||||||||||||||||||
Other | — | — | 1 | — | — | 4 | 5 | ||||||||||||||||||||
Balance September 30, 2012 | 163 | $ | 394 | $ | 1,119 | $ | 3,896 | $ | 1,171 | $ | (1,221 | ) | $ | 5,359 | |||||||||||||
Balance December 31, 2012 | 163 | $ | 394 | $ | 1,134 | $ | 4,021 | $ | 1,129 | $ | (1,225 | ) | $ | 5,453 | |||||||||||||
Net income | — | — | — | 395 | — | — | 395 | ||||||||||||||||||||
Other comprehensive income, net | — | — | — | — | 138 | — | 138 | ||||||||||||||||||||
Dividends declared | — | — | — | (202 | ) | — | — | (202 | ) | ||||||||||||||||||
Stock-based awards exercised and vested | 1 | 2 | 27 | — | — | 5 | 34 | ||||||||||||||||||||
Stock-based compensation | — | — | 14 | — | — | — | 14 | ||||||||||||||||||||
Purchases | — | — | — | — | — | (22 | ) | (22 | ) | ||||||||||||||||||
Other | — | — | 2 | — | — | 4 | 6 | ||||||||||||||||||||
Balance September 30, 2013 | 164 | $ | 396 | $ | 1,177 | $ | 4,214 | $ | 1,267 | $ | (1,238 | ) | $ | 5,816 |
Nine months ended September 30, | ||||||||
(In millions) | 2013 | 2012 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net income | $ | 395 | $ | 229 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 30 | 32 | ||||||
Realized gains on investments, net | (77 | ) | (29 | ) | ||||
Stock-based compensation | 14 | 12 | ||||||
Interest credited to contract holders | 31 | 25 | ||||||
Deferred income tax expense | 15 | 4 | ||||||
Changes in: | ||||||||
Investment income receivable | — | 3 | ||||||
Premiums and reinsurance receivable | (148 | ) | (129 | ) | ||||
Deferred policy acquisition costs | (60 | ) | (37 | ) | ||||
Other assets | (5 | ) | (4 | ) | ||||
Loss and loss expense reserves | 77 | 5 | ||||||
Life policy reserves | 53 | 53 | ||||||
Unearned premiums | 234 | 185 | ||||||
Other liabilities | 15 | 33 | ||||||
Current income tax receivable | (36 | ) | 51 | |||||
Net cash provided by operating activities | 538 | 433 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Sale of fixed maturities | 28 | 131 | ||||||
Call or maturity of fixed maturities | 711 | 689 | ||||||
Sale of equity securities | 178 | 165 | ||||||
Purchase of fixed maturities | (1,016 | ) | (914 | ) | ||||
Purchase of equity securities | (216 | ) | (325 | ) | ||||
Investment in buildings and equipment, net | (5 | ) | (5 | ) | ||||
Investment in finance receivables | (26 | ) | (24 | ) | ||||
Collection of finance receivables | 22 | 24 | ||||||
Change in other invested assets, net | 4 | 2 | ||||||
Net cash used in investing activities | (320 | ) | (257 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Payment of cash dividends to shareholders | (195 | ) | (191 | ) | ||||
Proceeds from stock options exercised | 17 | 6 | ||||||
Contract holders' funds deposited | 64 | 79 | ||||||
Contract holders' funds withdrawn | (78 | ) | (83 | ) | ||||
Excess tax benefits on stock-based compensation | 10 | 1 | ||||||
Other | (12 | ) | (10 | ) | ||||
Net cash used in financing activities | (194 | ) | (198 | ) | ||||
Net change in cash and cash equivalents | 24 | (22 | ) | |||||
Cash and cash equivalents at beginning of year | 487 | 438 | ||||||
Cash and cash equivalents at end of period | $ | 511 | $ | 416 | ||||
Supplemental disclosures of cash flow information: | ||||||||
Interest paid | $ | 27 | $ | 28 | ||||
Income taxes paid | 169 | 8 | ||||||
Non-cash activities: | ||||||||
Conversion of securities | $ | 59 | $ | 21 | ||||
Equipment acquired under capital lease obligations | 21 | 20 | ||||||
Cashless exercise of stock options | 22 | 7 |
(In millions) | Cost or | |||||||||||||||
amortized | Gross unrealized | Fair | ||||||||||||||
At September 30, 2013 | cost | gains | losses | value | ||||||||||||
Fixed maturities: | ||||||||||||||||
States, municipalities and political subdivisions | $ | 3,046 | $ | 146 | $ | 17 | $ | 3,175 | ||||||||
Convertibles and bonds with warrants attached | 16 | — | — | 16 | ||||||||||||
United States government | 7 | — | — | 7 | ||||||||||||
Government-sponsored enterprises | 209 | — | 19 | 190 | ||||||||||||
Foreign government | 10 | — | — | 10 | ||||||||||||
Commercial mortgage-backed securities | 79 | — | 3 | 76 | ||||||||||||
Corporate securities | 5,135 | 454 | 25 | 5,564 | ||||||||||||
Subtotal | 8,502 | 600 | 64 | 9,038 | ||||||||||||
Equity securities: | ||||||||||||||||
Common equities | 2,394 | 1,482 | 3 | 3,873 | ||||||||||||
Preferred equities | 77 | 34 | — | 111 | ||||||||||||
Subtotal | 2,471 | 1,516 | 3 | 3,984 | ||||||||||||
Total | $ | 10,973 | $ | 2,116 | $ | 67 | $ | 13,022 | ||||||||
At December 31, 2012 | ||||||||||||||||
Fixed maturities: | ||||||||||||||||
States, municipalities and political subdivisions | $ | 3,040 | $ | 250 | $ | 1 | $ | 3,289 | ||||||||
Convertibles and bonds with warrants attached | 31 | — | — | 31 | ||||||||||||
United States government | 7 | 1 | — | 8 | ||||||||||||
Government-sponsored enterprises | 164 | — | — | 164 | ||||||||||||
Foreign government | 3 | — | — | 3 | ||||||||||||
Commercial mortgage-backed securities | 27 | 1 | — | 28 | ||||||||||||
Corporate securities | 4,950 | 622 | 2 | 5,570 | ||||||||||||
Subtotal | 8,222 | 874 | 3 | 9,093 | ||||||||||||
Equity securities: | ||||||||||||||||
Common equities | 2,270 | 977 | 9 | 3,238 | ||||||||||||
Preferred equities | 99 | 37 | 1 | 135 | ||||||||||||
Subtotal | 2,369 | 1,014 | 10 | 3,373 | ||||||||||||
Total | $ | 10,591 | $ | 1,888 | $ | 13 | $ | 12,466 |
(In millions) | Less than 12 months | 12 months or more | Total | Total | ||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | fair | unrealized | |||||||||||||||||||
At September 30, 2013 | value | losses | value | losses | value | losses | ||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||
States, municipalities and political subdivisions | $ | 371 | $ | 17 | $ | 8 | $ | — | $ | 379 | $ | 17 | ||||||||||||
United States government | 1 | — | — | — | 1 | — | ||||||||||||||||||
Government-sponsored enterprises | 190 | 19 | — | — | 190 | 19 | ||||||||||||||||||
Foreign government | 9 | — | — | — | 9 | — | ||||||||||||||||||
Commercial mortgage-backed securities | 62 | 3 | — | — | 62 | 3 | ||||||||||||||||||
Corporate securities | 526 | 22 | 35 | 3 | 561 | 25 | ||||||||||||||||||
Subtotal | 1,159 | 61 | 43 | 3 | 1,202 | 64 | ||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||
Common equities | 74 | 3 | — | — | 74 | 3 | ||||||||||||||||||
Preferred equities | 4 | — | — | — | 4 | — | ||||||||||||||||||
Subtotal | 78 | 3 | — | — | 78 | 3 | ||||||||||||||||||
Total | $ | 1,237 | $ | 64 | $ | 43 | $ | 3 | $ | 1,280 | $ | 67 | ||||||||||||
At December 31, 2012 | ||||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||
States, municipalities and political subdivisions | $ | 53 | $ | 1 | $ | — | $ | — | $ | 53 | $ | 1 | ||||||||||||
Government-sponsored enterprises | 1 | — | — | — | 1 | — | ||||||||||||||||||
Corporate securities | 58 | 1 | 17 | 1 | 75 | 2 | ||||||||||||||||||
Subtotal | 112 | 2 | 17 | 1 | 129 | 3 | ||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||
Common equities | 107 | 9 | — | — | 107 | 9 | ||||||||||||||||||
Preferred equities | 4 | 1 | — | — | 4 | 1 | ||||||||||||||||||
Subtotal | 111 | 10 | — | — | 111 | 10 | ||||||||||||||||||
Total | $ | 223 | $ | 12 | $ | 17 | $ | 1 | $ | 240 | $ | 13 |
(In millions) | Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Investment income summary: | ||||||||||||||||
Interest on fixed maturities | $ | 104 | $ | 105 | $ | 309 | $ | 317 | ||||||||
Dividends on equity securities | 30 | 28 | 87 | 81 | ||||||||||||
Other investment income | 1 | 1 | 2 | 3 | ||||||||||||
Total | 135 | 134 | 398 | 401 | ||||||||||||
Less investment expenses | 2 | 2 | 6 | 6 | ||||||||||||
Total | $ | 133 | $ | 132 | $ | 392 | $ | 395 | ||||||||
Realized investment gains and losses summary: | ||||||||||||||||
Fixed maturities: | ||||||||||||||||
Gross realized gains | $ | 5 | $ | 14 | $ | 9 | $ | 30 | ||||||||
Gross realized losses | — | — | — | — | ||||||||||||
Other-than-temporary impairments | — | — | (2 | ) | — | |||||||||||
Equity securities: | ||||||||||||||||
Gross realized gains | 15 | 1 | 64 | 30 | ||||||||||||
Gross realized losses | — | — | — | (1 | ) | |||||||||||
Other-than-temporary impairments | — | (2 | ) | — | (32 | ) | ||||||||||
Securities with embedded derivatives | — | (4 | ) | 1 | 1 | |||||||||||
Other | 2 | 1 | 5 | 1 | ||||||||||||
Total | $ | 22 | $ | 10 | $ | 77 | $ | 29 | ||||||||
Change in unrealized gains and losses summary: | ||||||||||||||||
Fixed maturities | $ | (28 | ) | $ | 110 | $ | (335 | ) | $ | 188 | ||||||
Equity securities | 90 | 143 | 509 | 240 | ||||||||||||
Amortization of pension actuarial loss and prior service cost | 2 | 2 | 7 | 5 | ||||||||||||
Adjustment to deferred acquisition costs and life policy reserves | 9 | (6 | ) | 38 | (21 | ) | ||||||||||
Other | (2 | ) | — | (7 | ) | 5 | ||||||||||
Income taxes on above | (25 | ) | (88 | ) | (74 | ) | (147 | ) | ||||||||
Total | $ | 46 | $ | 161 | $ | 138 | $ | 270 |
(In millions) | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total | ||||||||||||
At September 30, 2013 | ||||||||||||||||
Fixed maturities, available for sale: | ||||||||||||||||
States, municipalities and political subdivisions | $ | — | $ | 3,175 | $ | — | $ | 3,175 | ||||||||
Convertibles and bonds with warrants attached | — | 16 | — | 16 | ||||||||||||
United States government | 7 | — | — | 7 | ||||||||||||
Government-sponsored enterprises | — | 190 | — | 190 | ||||||||||||
Foreign government | — | 10 | — | 10 | ||||||||||||
Commercial mortgage-backed securities | — | 76 | — | 76 | ||||||||||||
Corporate securities | — | 5,561 | 3 | 5,564 | ||||||||||||
Subtotal | 7 | 9,028 | 3 | 9,038 | ||||||||||||
Common equities, available for sale | 3,873 | — | — | 3,873 | ||||||||||||
Preferred equities, available for sale | — | 109 | 2 | 111 | ||||||||||||
Taxable fixed maturities separate accounts | — | 689 | — | 689 | ||||||||||||
Top Hat Savings Plan (included in Other assets) | 12 | — | — | 12 | ||||||||||||
Total | $ | 3,892 | $ | 9,826 | $ | 5 | $ | 13,723 | ||||||||
At December 31, 2012 | ||||||||||||||||
Fixed maturities, available for sale: | ||||||||||||||||
States, municipalities and political subdivisions | $ | — | $ | 3,288 | $ | 1 | $ | 3,289 | ||||||||
Convertibles and bonds with warrants attached | — | 31 | — | 31 | ||||||||||||
United States government | 8 | — | — | 8 | ||||||||||||
Government-sponsored enterprises | — | 164 | — | 164 | ||||||||||||
Foreign government | — | 3 | — | 3 | ||||||||||||
Commercial mortgage-backed securities | — | 28 | — | 28 | ||||||||||||
Corporate securities | — | 5,567 | 3 | 5,570 | ||||||||||||
Subtotal | 8 | 9,081 | 4 | 9,093 | ||||||||||||
Common equities, available for sale | 3,238 | — | — | 3,238 | ||||||||||||
Preferred equities, available for sale | — | 134 | 1 | 135 | ||||||||||||
Taxable fixed-maturities separate accounts | — | 689 | — | 689 | ||||||||||||
Top Hat Savings Plan (included in Other assets) | 9 | — | — | 9 | ||||||||||||
Total | $ | 3,255 | $ | 9,904 | $ | 5 | $ | 13,164 |
(In millions) | Corporate fixed maturities | States, municipalities and political subdivisions fixed maturities | Preferred equities | Total | ||||||||||||
Beginning balance, June 30, 2013 | $ | 3 | $ | 1 | $ | 2 | $ | 6 | ||||||||
Total gains or losses (realized/unrealized): | ||||||||||||||||
Included in earnings | — | — | — | — | ||||||||||||
Included in other comprehensive income | — | — | — | — | ||||||||||||
Purchases | — | — | — | — | ||||||||||||
Sales | — | (1 | ) | — | (1 | ) | ||||||||||
Transfers into Level 3 | — | — | — | — | ||||||||||||
Transfers out of Level 3 | — | — | — | — | ||||||||||||
Ending balance, September 30, 2013 | $ | 3 | $ | — | $ | 2 | $ | 5 | ||||||||
Beginning balance, June 30, 2012 | $ | 4 | $ | 2 | $ | 7 | $ | 13 | ||||||||
Total gains or losses (realized/unrealized): | ||||||||||||||||
Included in earnings | — | — | — | — | ||||||||||||
Included in other comprehensive income | — | — | — | — | ||||||||||||
Purchases | — | — | — | — | ||||||||||||
Sales | — | (1 | ) | — | (1 | ) | ||||||||||
Transfers into Level 3 | — | — | — | — | ||||||||||||
Transfers out of Level 3 | — | — | — | — | ||||||||||||
Ending balance, September 30, 2012 | $ | 4 | $ | 1 | $ | 7 | $ | 12 |
(In millions) | Corporate fixed maturities | States, municipalities and political subdivisions fixed maturities | Preferred equities | Total | ||||||||||||
Beginning balance, December 31, 2012 | $ | 3 | $ | 1 | $ | 1 | $ | 5 | ||||||||
Total gains or losses (realized/unrealized): | ||||||||||||||||
Included in earnings | — | — | — | — | ||||||||||||
Included in other comprehensive income | — | — | — | — | ||||||||||||
Purchases | — | — | 1 | 1 | ||||||||||||
Sales | — | (1 | ) | — | (1 | ) | ||||||||||
Transfers into Level 3 | — | — | — | — | ||||||||||||
Transfers out of Level 3 | — | — | — | — | ||||||||||||
Ending balance, September 30, 2013 | $ | 3 | $ | — | $ | 2 | $ | 5 | ||||||||
Beginning balance, December 31, 2011 | $ | 18 | $ | 3 | $ | 4 | $ | 25 | ||||||||
Total gains or losses (realized/unrealized): | ||||||||||||||||
Included in earnings | — | — | — | — | ||||||||||||
Included in other comprehensive income | 3 | — | 2 | 5 | ||||||||||||
Purchases | — | — | 1 | 1 | ||||||||||||
Sales | (4 | ) | (2 | ) | — | (6 | ) | |||||||||
Transfers into Level 3 | 1 | — | — | 1 | ||||||||||||
Transfers out of Level 3 | (14 | ) | — | — | (14 | ) | ||||||||||
Ending balance, September 30, 2012 | $ | 4 | $ | 1 | $ | 7 | $ | 12 |
(In millions) | Book value | Principal amount | |||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | ||||||||||||||||||
Interest rate | Year of issue | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
6.900 | % | 1998 | Senior debentures, due 2028 | $ | 28 | $ | 28 | $ | 28 | $ | 28 | ||||||||||
6.920 | % | 2005 | Senior debentures, due 2028 | 391 | 391 | 391 | 391 | ||||||||||||||
6.125 | % | 2004 | Senior notes, due 2034 | 371 | 371 | 374 | 374 | ||||||||||||||
Total | $ | 790 | $ | 790 | $ | 793 | $ | 793 |
(In millions) | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total | ||||||||||||
At September 30, 2013 | ||||||||||||||||
Note payable | $ | — | $ | 104 | $ | — | $ | 104 | ||||||||
6.900% senior debentures, due 2028 | — | 32 | — | 32 | ||||||||||||
6.920% senior debentures, due 2028 | — | 470 | — | 470 | ||||||||||||
6.125% senior notes, due 2034 | — | 398 | — | 398 | ||||||||||||
Total | $ | — | $ | 1,004 | $ | — | $ | 1,004 | ||||||||
At December 31, 2012 | ||||||||||||||||
Note payable | $ | — | $ | 104 | $ | — | $ | 104 | ||||||||
6.900% senior debentures, due 2028 | — | 31 | — | 31 | ||||||||||||
6.920% senior debentures, due 2028 | — | 479 | — | 479 | ||||||||||||
6.125% senior notes, due 2034 | — | 431 | — | 431 | ||||||||||||
Total | $ | — | $ | 1,045 | $ | — | $ | 1,045 |
(In millions) | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total | ||||||||||||
At September 30, 2013 | ||||||||||||||||
Life policy loans | $ | — | $ | — | $ | 44 | $ | 44 | ||||||||