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Financial Statement Revisions | 12 Months Ended
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Dec. 31, 2017
Accounting Changes and Error Corrections [Abstract] |
Financial Statement Revisions | Financial Statement Revisions In October 2017, White Mountains discovered that the former CEO of Wobi, one of its overseas portfolio companies, had been reporting overstated commission revenues and related receivables to White Mountains. Upon discovery of the overstatements, White Mountains initiated an investigation, conducted by outside counsel, of the reporting of these overstatements by Wobi to White Mountains. As a result of this investigation, White Mountains has revised certain of its previously issued financial statements. The revisions resulted in reductions to commission revenues (included in advertising and commission revenues) and commissions receivable (included in other assets). In addition, the overstatements led White Mountains to write down the goodwill and other intangible assets related to Wobi to zero. This write down is recorded in general and administrative expenses for the years ended December 31, 2016 and 2015. Wobi also conducted a separate investigation with the assistance of Israeli counsel to support the preparation of Wobi’s standalone financial statements. That separate investigation has been completed and its results did not materially impact White Mountains’s financial statements. White Mountains evaluated the impact of the misstatements resulting from the overstatements at Wobi on prior periods’ financial statements in accordance with SEC Staff Accounting Bulletin (“SAB”) Topic 1.M, Materiality, and concluded the misstatements were not material to any previously reported financial statements. However, while not material to any previously reported annual or quarterly period, the aggregate amount of prior period misstatements could be material to White Mountains's results for the full fiscal year ended December 31, 2017. White Mountains has therefore revised all periods impacted including its consolidated balance sheets as of December 31, 2016 and 2015; and its consolidated statements of operations and comprehensive income, consolidated statements of changes in equity, cash flows and earnings per share for the years ended December 31, 2016 and 2015. The revisions also reflect a previously recorded out of period adjustment in 2015 and 2014. The following tables presents the impact of these revisions to each of the previously reported consolidated statements. Amounts previously reported reflect the reclassification of OneBeacon, Sirius Group and Tranzact to discontinued operations for all applicable periods presented. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
|  | As previously reported |  | Adjustments |  | As revised
|  | Years ended December 31,
Millions, except for per share amounts |  | 2016 |  | 2015 |  | 2016 |  | 2015 |  | 2016 |  | 2015
Revenues: |  |  |  |  |  |  |  |  |  |  |  |
Financial Guarantee (HG Global/BAM) |  |  |  |  |  |  |  |  |  |  |  |
Financial Guarantee revenues |  | $ | 16.7 |  |  | $ | 10.7 |  |  | $ | — |  |  | $ | — |  |  | $ | 16.7 |  |  | $ | 10.7 |
Marketing Technology (MediaAlpha) |  |  |  |  |  |  |  |  |  |  |  |
Marketing Technology revenues |  | 116.5 |  |  | 105.5 |  |  | — |  |  | — |  |  | 116.5 |  |  | 105.5 |
Other |  |  |  |  |  |  |  |  |  |  |  |
Advertising & commission revenues |  | 10.4 |  |  | 4.6 |  |  | (8.6 | ) |  | (2.7 | ) |  | 1.8 |  |  | 1.9 |
Other revenues (1)(2) |  | 22.7 |  |  | 314.5 |  |  | — |  |  | 7.4 |  |  | 22.7 |  |  | 321.9 |
Other revenues |  | 33.1 |  |  | 319.1 |  |  | (8.6 | ) |  | 4.7 |  |  | 24.5 |  |  | 323.8 |
Total revenues |  | 166.3 |  |  | 435.3 |  |  | (8.6 | ) |  | 4.7 |  |  | 157.7 |  |  | 440.0 |
Expenses: |  |  |  |  |  |  |  |  |  |  |  |
Financial Guarantee (HG Global/BAM) |  |  |  |  |  |  |  |  |  |  |  |
Financial Guarantee expenses |  | 43.4 |  |  | 40.1 |  |  | — |  |  | — |  |  | 43.4 |  |  | 40.1 |
Marketing Technology (MediaAlpha) |  |  |  |  |  |  |  |  |  |  |  |
Marketing Technology expenses |  | 120.6 |  |  | 107.5 |  |  | — |  |  | — |  |  | 120.6 |  |  | 107.5 |
Other |  |  |  |  |  |  |  |  |  |  |  |
Other expenses (3) |  | 137.6 |  |  | 154.5 |  |  | 3.0 |  | (5 | ) | 8.2 |  | (5 | ) | 140.6 |  |  | 162.7 |
Amortization of other intangible assets |  | 1.2 |  |  | 1.2 |  |  | (.8 | ) |  | (.7 | ) |  | .4 |  |  | .5 |
Other expenses |  | 138.8 |  |  | 155.7 |  |  | 2.2 |  |  | 7.5 |  |  | 141.0 |  |  | 163.2 |
Total expenses |  | 302.8 |  |  | 303.3 |  |  | 2.2 |  |  | 7.5 |  |  | 305.0 |  |  | 310.8 |
Pre-tax (loss) income |  | (136.5 | ) |  | 132.0 |  |  | (10.8 | ) |  | (2.8 | ) |  | (147.3 | ) |  | 129.2 |
Income benefit (expense) |  | 32.9 |  |  | (12.7 | ) |  | — |  |  | — |  |  | 32.9 |  |  | (12.7 | )
Net (loss) income from continuing operations |  | (103.6 | ) |  | 119.3 |  |  | (10.8 | ) |  | (2.8 | ) |  | (114.4 | ) |  | 116.5 |
Gain on sale of discontinued operations, net of tax |  | 415.1 |  |  | 18.2 |  |  | — |  |  | — |  |  | 415.1 |  |  | 18.2 |
Net income from discontinued operations |  | 108.3 |  |  | 116.9 |  |  | — |  |  | — |  |  | 108.3 |  |  | 116.9 |
Income before equity in earnings of unconsolidated affiliates |  | 419.8 |  |  | 254.4 |  |  | (10.8 | ) |  | (2.8 | ) |  | 409.0 |  |  | 251.6 |
Equity in earnings of unconsolidated affiliates |  | — |  |  | 25.1 |  |  | — |  |  | — |  |  | — |  |  | 25.1 |
Net income (4) |  | 419.8 |  |  | 279.5 |  |  | (10.8 | ) |  | (2.8 | ) |  | 409.0 |  |  | 276.7 |
Net (income) loss attributable to non-controlling interests |  | (7.3 | ) |  | 18.1 |  |  | .1 |  |  | .4 |  |  | (7.2 | ) |  | 18.5 |
Net income attributable to White Mountains's common shareholders |  | 412.5 |  |  | 297.6 |  |  | (10.7 | ) |  | (2.4 | ) |  | 401.8 |  |  | 295.2 |
Other comprehensive income (loss), net of tax (1) |  | 145.6 |  |  | (100.4 | ) |  | — |  |  | (7.4 | ) |  | 145.6 |  |  | (107.8 | )
Comprehensive income |  | 558.1 |  |  | 197.2 |  |  | (10.7 | ) |  | (9.8 | ) |  | 547.4 |  |  | 187.4 |
Comprehensive income attributable to non-controlling interests |  | (.3 | ) |  | — |  |  | — |  |  | — |  |  | (.3 | ) |  | — |
Comprehensive income attributable to White Mountains's common shareholders |  | $ | 557.8 |  |  | $ | 197.2 |  |  | $ | (10.7 | ) |  | $ | (9.8 | ) |  | $ | 547.1 |  |  | $ | 187.4 |
Basic and diluted earnings per share - continuing operations |  | $ | (22.13 | ) |  | $ | 27.63 |  |  | $ | (2.13 | ) |  | $ | (.41 | ) |  | $ | (24.26 | ) |  | $ | 27.22 |
(1) In 2015, White Mountains recorded a foreign currency translation gain related to its investment in Symetra in net income when it should have been recorded through other comprehensive income. The correction to properly reflect the translation amount through other comprehensive income did not have any impact on comprehensive income attributable to White Mountains's common shareholders or to book value per share. (2) Total other revenues include earned insurance premiums, net investment income, net realized and unrealized losses, and other revenues. (3) Total other expenses include loss and loss adjustment expenses, insurance acquisition expenses, other underwriting expenses, cost of sales, general and administrative expenses, and interest expense. (4) The adjustment to net income resulted in a corresponding adjustment in the statement of cash flows, with an offsetting adjustment to the change in other assets and liabilities within the operating cash flows section. There was no change to cash flows from operations, cash flows from investing activities or cash flows from financing activities. (5) The adjustments to other expenses is primarily related to the write-off of goodwill and intangible assets for Wobi. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
|  | As previously reported |  | Adjustments |  | As revised
|  | Years ended December 31,
Millions |  | 2016 |  | 2015 |  | 2014 |  | 2016 |  | 2015 |  | 2014 |  | 2016 |  | 2015 |  | 2014
Common shares and paid-in surplus |  | $ | 810.7 |  |  | $ | 978.2 |  |  | $ | 1,034.7 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 810.7 |  |  | $ | 978.2 |  |  | $ | 1,034.7 |
Retained earnings, beginning of year |  | 3,084.9 |  |  | 3,010.5 |  |  | 2,801.9 |  |  | (9.9 | ) |  | (7.5 | ) |  | (.5 | ) |  | 3,075.0 |  |  | 3,003.0 |  |  | 2,801.4 |
Share repurchases |  | (694.8 | ) |  | (217.2 | ) |  | (97.4 | ) |  | — |  |  | — |  |  | — |  |  | (694.8 | ) |  | (217.2 | ) |  | (97.4 | )
Net income |  | 412.5 |  |  | 297.6 |  |  | 312.2 |  |  | (10.7 | ) |  | (2.4 | ) |  | (7.0 | ) |  | 401.8 |  |  | 295.2 |  |  | 305.2 |
Dividends |  | (5.4 | ) |  | (6.0 | ) |  | (6.2 | ) |  | — |  |  | — |  |  | — |  |  | (5.4 | ) |  | (6.0 | ) |  | (6.2 | )
Retained earnings, end of year |  | 2,797.2 |  |  | 3,084.9 |  |  | 3,010.5 |  |  | (20.6 | ) |  | (9.9 | ) |  | (7.5 | ) |  | 2,776.6 |  |  | 3,075.0 |  |  | 3,003.0 |
Accumulated other comprehensive (loss) income, after-tax, beginning of year |  | (149.9 | ) |  | (49.5 | ) |  | 52.1 |  |  | — |  |  | 7.4 |  |  | .5 |  |  | (149.9 | ) |  | (42.1 | ) |  | 52.6 |
Net change in foreign currency translation |  | 31.4 |  |  | (65.8 | ) |  | (168.2 | ) |  | — |  |  | (7.4 | ) |  | 6.9 |  |  | 31.4 |  |  | (73.2 | ) |  | (161.3 | )
Net other changes in AOCI |  | 113.9 |  |  | (34.6 | ) |  | 66.6 |  |  | — |  |  | — |  |  | — |  |  | 113.9 |  |  | (34.6 | ) |  | 66.6 |
Accumulated other comprehensive loss, after-tax, end of year |  | (4.6 | ) |  | (149.9 | ) |  | (49.5 | ) |  | — |  |  | — |  |  | 7.4 |  |  | (4.6 | ) |  | (149.9 | ) |  | (42.1 | )
Total White Mountains Common Shareholders' Equity |  | 3,603.3 |  |  | 3,913.2 |  |  | 3,995.7 |  |  | (20.6 | ) |  | (9.9 | ) |  | (.1 | ) |  | 3,582.7 |  |  | 3,903.3 |  |  | 3,995.6 |
Non-controlling interests, beginning of year |  | 454.8 |  |  | 542.7 |  |  | 491.7 |  |  | (.5 | ) |  | (.1 | ) |  | — |  |  | 454.3 |  |  | 542.6 |  |  | 491.7 |
Net income (loss) |  | 7.3 |  |  | (18.1 | ) |  | (22.2 | ) |  | (.1 | ) |  | (.4 | ) |  | (.1 | ) |  | 7.2 |  |  | (18.5 | ) |  | (22.3 | )
Other changes in NCI |  | (328.2 | ) |  | (69.8 | ) |  | 73.2 |  |  | — |  |  | — |  |  | — |  |  | (328.2 | ) |  | (69.8 | ) |  | 73.2 |
Non-controlling interests, end of year |  | 133.9 |  |  | 454.8 |  |  | 542.7 |  |  | (.6 | ) |  | (.5 | ) |  | (.1 | ) |  | 133.3 |  |  | 454.3 |  |  | 542.6 |
Total equity |  | $ | 3,737.2 |  |  | $ | 4,368.0 |  |  | $ | 4,538.4 |  |  | $ | (21.2 | ) |  | $ | (10.4 | ) |  | $ | (.2 | ) |  | $ | 3,716.0 |  |  | $ | 4,357.6 |  |  | $ | 4,538.2 |
CONSOLIDATED BALANCE SHEETS
|  | December 31, 2016
Millions |  | As previously reported |  | Adjustments |  | As revised
Assets |  |  |  |  |  |
Financial Guarantee (HG Global/BAM) |  |  |  |  |  |
Financial Guarantee assets |  | $ | 677.6 |  |  | $ | — |  |  | $ | 677.6 |
Marketing Technology (MediaAlpha) |  |  |  |  |  |
Marketing Technology assets |  | 57.6 |  |  | — |  |  | 57.6 |
Other |  |  |  |  |  |
Investments |  | 2,084.7 |  |  | — |  |  | 2,084.7 |
Goodwill |  | 13.4 |  |  | (5.8 | ) |  | 7.6 |
Other intangible assets |  | 4.7 |  |  | (3.7 | ) |  | 1.0 |
Other assets — commissions receivable |  | 14.8 |  |  | (14.8 | ) |  | — |
Other assets (1) |  | 85.5 |  |  | (.2 | ) |  | 85.3 |
Assets held for sale |  | 3,606.4 |  |  | — |  |  | 3,606.4 |
Other segment assets |  | 5,809.5 |  |  | (24.5 | ) |  | 5,785.0 |
Total assets |  | $ | 6,544.7 |  |  | $ | (24.5 | ) |  | $ | 6,520.2 |
Liabilities |  |  |  |  |  |
Financial Guarantee (HG Global/BAM) |  |  |  |  |  |
Total Financial Guarantee liabilities |  | $ | 108.9 |  |  | $ | — |  |  | $ | 108.9 |
Marketing Technology (MediaAlpha) |  |  |  |  |  |
Total Marketing Technology liabilities |  | 28.3 |  |  | — |  |  | 28.3 |
Other |  |  |  |  |  |
Accrued incentive compensation |  | 79.1 |  |  | — |  |  | 79.1 |
Other liabilities (2) |  | 21.9 |  |  | (3.3 | ) |  | 18.6 |
Liabilities held for sale |  | 2,569.3 |  |  | — |  |  | 2,569.3 |
Total Other segment liabilities |  | 2,670.3 |  |  | (3.3 | ) |  | 2,667.0 |
Total liabilities |  | 2,807.5 |  |  | (3.3 | ) |  | 2,804.2 |
Equity |  |  |  |  |  |
White Mountains's common shares |  | 4.6 |  |  | — |  |  | 4.6 |
Paid in surplus |  | 806.1 |  |  | — |  |  | 806.1 |
Retained earnings |  | 2,797.2 |  |  | (20.6 | ) |  | 2,776.6 |
Accumulated other comprehensive income, net of tax |  | (4.6 | ) |  | — |  |  | (4.6 | )
Total White Mountains's common shareholders' equity |  | 3,603.3 |  |  | (20.6 | ) |  | 3,582.7 |
Non-controlling interests |  | 133.9 |  |  | (.6 | ) |  | 133.3 |
Total equity |  | 3,737.2 |  |  | (21.2 | ) |  | 3,716.0 |
Total liabilities and equity |  | $ | 6,544.7 |  |  | $ | (24.5 | ) |  | $ | 6,520.2 |

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- Definition The entire disclosure for reporting accounting changes and error corrections. It includes the conveyance of information necessary for a user of the Company's financial information to understand all aspects and required disclosure information concerning all changes and error corrections reported in the Company's financial statements for the period. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -URI http://asc.fasb.org/topic&trid=2122394 + Details
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