Condensed Financial Statements (Parent Company)

12 Months Ended

Dec. 31, 2021

Condensed Financial Information Of Parent Company Only Disclosure [Abstract]

Condensed Financial Information of Parent Company Only Disclosure

SCHEDULE II

1 OF 5

FIRST AMERICAN FINANCIAL CORPORATION

(Parent Company)

CONDENSED BALANCE SHEETS

(in millions, except par values)

	December 31,
	2021			2020
Assets
Cash and cash equivalents	$	925		$	207
Dividends receivable		—			30
Due from subsidiaries, net		79			285
Income taxes receivable		11			1
Investment in subsidiaries		6,862			5,946
Equity securities		206			94
Deferred income taxes		14			14
Other assets		137			121
	$	8,234		$	6,698
Liabilities and Equity
Accounts payable and other accrued liabilities	$	30		$	22
Pension costs and other retirement plans		416			416
Income taxes payable		24			54
Deferred income taxes		345			291
Notes and contracts payable		1,636			993
		2,451			1,776
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.00001 par value; Authorized—0.5 shares; Outstanding—none		—			—
Common stock, $0.00001 par value; Authorized—300.0 shares;
Outstanding—109.7 shares and 110.4 shares		—			—
Additional paid-in capital		2,179			2,215
Retained earnings		3,680			2,655
Accumulated other comprehensive (loss) income		(92	)		40
Total stockholders’ equity		5,767			4,910
Noncontrolling interests		16			12
Total equity		5,783			4,922
	$	8,234		$	6,698

See Notes to Condensed Financial Statements

SCHEDULE II

2 OF 5

FIRST AMERICAN FINANCIAL CORPORATION

(Parent Company)

CONDENSED STATEMENTS OF INCOME

(in millions)

	Year Ended December 31,
	2021		2020		2019
Revenues:
Dividends from subsidiaries	$	622	$	604	$	385
Other income		19		14		21
Net investment gains		121		7		—
		762		625		406
Expenses:
Other expenses		84		69		67
Income before income taxes and equity in undistributed earnings of subsidiaries		678		556		339
Income taxes		162		134		73
Equity in undistributed earnings of subsidiaries		733		278		444
Net income		1,249		700		710
Less: Net income attributable to noncontrolling interests		8		4		3
Net income attributable to the Company	$	1,241	$	696	$	707

See Notes to Condensed Financial Statements

SCHEDULE II

3 OF 5

FIRST AMERICAN FINANCIAL CORPORATION

(Parent Company)

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

(in millions)

	Year Ended December 31,
	2021			2020			2019
Net income	$	1,249		$	700		$	710
Other comprehensive income (loss), net of tax:
Unrealized (losses) gains on securities		(143	)		88			125
Foreign currency translation adjustment		(1	)		14			14
Pension benefit adjustment		12			(21	)		(20	)
Total other comprehensive (loss) income, net of tax		(132	)		81			119
Comprehensive income		1,117			781			829
Less: Comprehensive income attributable to noncontrolling interests		8			4			3
Comprehensive income attributable to the Company	$	1,109		$	777		$	826

See Notes to Condensed Financial Statements

SCHEDULE II

4 OF 5

FIRST AMERICAN FINANCIAL CORPORATION

(Parent Company)

CONDENSED STATEMENTS OF CASH FLOWS

(in millions)

	Year Ended December 31,
	2021			2020			2019
Cash flows from operating activities:
Cash provided by operating activities	$	641		$	600		$	356
Cash flows from investing activities:
Net cash effect of acquisitions		—			—			(15	)
Net payments to subsidiaries		(259	)		(668	)		(58	)
Purchases of equity securities		—			(19	)		(77	)
Proceeds from sales of property and equipment		—			7			—
Cash used for investing activities		(259	)		(680	)		(150	)
Cash flows from financing activities:
Net proceeds from issuance of unsecured senior notes		642			444			—
Borrowings under unsecured credit facility		—			120			160
Repayments of borrowings under unsecured credit facility		—			(280	)		(160	)
Net proceeds (payments) in connection with share-based compensation		6			(1	)		(1	)
Repurchases of Company shares		(99	)		(139	)		(2	)
Payments of cash dividends		(213	)		(199	)		(188	)
Cash provided by (used for) financing activities		336			(55	)		(191	)
Net increase (decrease) in cash and cash equivalents		718			(135	)		15
Cash and cash equivalents—Beginning of period		207			342			327
Cash and cash equivalents—End of period	$	925		$	207		$	342

See Notes to Condensed Financial Statements

SCHEDULE II

5 OF 5

FIRST AMERICAN FINANCIAL CORPORATION

(Parent Company)

NOTES TO CONDENSED FINANCIAL STATEMENTS

NOTE 1. Description of the Company:

First American Financial Corporation is a holding company that conducts all of its operations through its subsidiaries. The Parent Company financial statements should be read in connection with the consolidated financial statements and notes thereto included elsewhere in this Form 10-K.

NOTE 2. Dividends Received:

The holding company received cash dividends from subsidiaries of $624 million, $574 million and $385 million for the years ended December 31, 2021, 2020 and 2019, respectively.