v2.4.0.6
Discontinued Operations
 9 Months Ended
Sep. 30, 2012
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations
Note 2 - Discontinued Operations
The Company accounts for Fireside and the Company’s former Unitrin Business Insurance operations as discontinued operations. Summary financial information included in Income from Discontinued Operations for the nine and three months ended September 30, 2012 and 2011 is presented below:
 
 
Nine Months Ended
 
Three Months Ended
(Dollars in Millions, Except Per Share Amounts)
 
Sep 30,
2012
 
Sep 30,
2011
 
Sep 30,
2012
 
Sep 30,
2011
Interest, Loan Fees and Earned Discounts
 
$
—

 
$
31.8

 
$
—

 
$
3.8

Other Income
 
—

 
1.4

 
—

 
1.1

Net Gain on Sale of Loan Portfolios
 
12.9

 
4.5

 
0.5

 
4.5

Net Investment Income
 
—

 
0.5

 
—

 
—

Net Realized Gains on Sales of Investments
 
—

 
0.4

 
—

 
—

Total Revenues Included in Discontinued Operations
 
$
12.9

 
$
38.6

 
$
0.5

 
$
9.4

 
 
 
 
 
 
 
 
 
Income (Loss) from Discontinued Operations before Income Taxes:
 
 
 
 
 
 
 
 
Fireside:
 
 
 
 
 
 
 
 
Results of Operations
 
$
(0.2
)
 
$
17.8

 
$
—

 
$
(2.0
)
Net Gain on Sale of Loan Portfolios
 
12.9

 
4.5

 
0.5

 
4.5

Unitrin Business Insurance:
 
 
 
 
 
 
 
 
Change in Estimate of Retained Liabilities Arising from Discontinued Operations
 
0.5

 
(3.0
)
 
(0.6
)
 
(1.9
)
Income (Loss) from Discontinued Operations before Income Taxes
 
13.2

 
19.3

 
(0.1
)
 
0.6

Income Tax Benefit (Expense)
 
(5.2
)
 
(5.8
)
 
0.1

 
0.3

Income from Discontinued Operations
 
$
8.0

 
$
13.5

 
$
—

 
$
0.9

 
 
 
 
 
 
 
 
 
Income from Discontinued Operations Per Unrestricted Share:
 
 
 
 
 
 
 
 
Basic
 
$
0.14

 
$
0.22

 
$
—

 
$
0.02

Diluted
 
$
0.14

 
$
0.22

 
$
—

 
$
0.02


During 2011, Fireside sold its active portfolio of automobile loan receivables at a gain of $4.5 million, net of transaction and other costs, while retaining its inactive portfolio of loans that had been previously charged-off (the “Inactive Portfolio”). The Inactive Portfolio was not carried on the Company’s Condensed Consolidated Balance Sheet. During 2012, Fireside sold $283 million of loans in the Inactive Portfolio at a gain of $12.9 million, net of transaction, shutdown and other costs of $13.3 million, of which $4.7 million was unpaid at September 30, 2012.
Note 2 - Discontinued Operations (continued)
The Company has retained Property and Casualty Insurance Reserves for unpaid insured losses of its former Unitrin Business Insurance operations that occurred prior to June 1, 2008, the effective date of the sale of such operations. Property and Casualty Insurance Reserves reported in the Company’s Condensed Consolidated Balance Sheets include $110.0 million and $125.6 million at September 30, 2012 and December 31, 2011, respectively, for such retained liabilities. Changes in the Company’s estimate of such retained liabilities after the sale are reported as a separate component of the results of discontinued operations.