XML 20 R10.htm IDEA: XBRL DOCUMENT
v3.19.3

Fair Value Measurements | 9 Months Ended
--- | ---
Sep. 30, 2019
Fair Value Disclosures [Abstract] |
Fair Value Measurements | Fair Value Measurements The fair value hierarchy established by the accounting standards on fair value measurements includes three levels which are based on the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. Financial assets and liabilities that are recorded in the Condensed Consolidated Balance Sheets are categorized based on the inputs to the valuation techniques as follows: Level 1. Financial assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that we have the ability to access. Level 2. Financial assets and liabilities whose values are based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly for substantially the full term of the asset or liability. Level 3. Financial assets and liabilities whose values are based on model inputs that are unobservable. Recurring Fair Value Measurements The following table presents our fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of September 30, 2019 and December 31, 2018, respectively:
| September 30, 2019
| Level 1 |  | Level 2 |  | Level 3 |  | Total
| (In millions)
Fixed-maturity securities available for sale: |  |  |  |  |  |  |  |  |  |  |
Corporate debt securities | $ | — |  |  | $ | — |  |  | $ | 18.7 |  |  | $ | 18.7 |
Total | $ | — |  |  | $ | — |  |  | $ | 18.7 |  |  | $ | 18.7 |
| December 31, 2018
| Level 1 |  | Level 2 |  | Level 3 |  | Total
| (In millions)
Fixed-maturity securities available for sale: |  |  |  |  |  |  |  |  |  |  |
Corporate debt securities | $ | — |  |  | $ | — |  |  | $ | 17.8 |  |  | $ | 17.8 |
Total | $ | — |  |  | $ | — |  |  | $ | 17.8 |  |  | $ | 17.8 |
Our Level 3 fair value measurement for our fixed maturity securities available for sale are provided by a single third-party pricing service. Depending on security specific characteristics, either a combination of an income and net recovery approach or a contingent claims approach was utilized in determining fair value of our Level 3 fixed-maturity securities available for sale. Discount rates are the primary unobservable inputs utilized for the securities valued using a combination of an income and net recovery approach. The discount rates used are based on company-specific risk premiums, public company comparable securities, and leveraged loan indices. The discount rates used in our determination of the fair value of our Level 3 fixed-maturity securities available for sale varies by security type and ranged fro m 15.5% to 16.0% as of September 30, 2019 and a weighted avera ge based on relative fair value of the underlying securities of 16.0%. Based on the total fair value of our Level 3 fixed-maturity securities available for sale as of September 30, 2019, changes in the discount rate utilized will not result in a fair value significantly different or material to the Company's financial position or results of operation than the amount recorded. The following table presents a summary of the changes in the fair values of Level 3 assets, measured on a recurring basis, for the three and nine months ended September 30, 2019 and 2018 (in millions).
| Three months ended September 30, 2019 |  | Three months ended September 30, 2018
| Corporate debt |  | Corporate debt
| securities |  | securities
Fair value, beginning of period | $ | 17.7 |  |  | $ | 21.6 |
Accretion of original purchase discount (1) | — |  |  | 0.3 |
Net valuation gain included in other comprehensive earnings (3) | 1.0 |  |  | 1.6 |
Fair value, end of period | $ | 18.7 |  |  | $ | 23.5 |
| Nine months ended September 30, 2019 |  | Nine months ended September 30, 2018
| Corporate debt |  | Corporate debt
| securities |  | securities
Fair value, beginning of period | $ | 17.8 |  |  | $ | — |
Transfers from Level 2 | — |  |  | 21.4 |
Paid-in-kind dividends (1) | 0.1 |  |  | 0.1 |
Accretion of original purchase discount (1) | — |  |  | 0.5 |
Impairment (2) | (0.4 | ) |  | — |
Net valuation gain included in other comprehensive earnings (3) | 1.2 |  |  | 1.5 |
Fair value, end of period | $ | 18.7 |  |  | $ | 23.5 |
_____________________________________ (1) Included in Interest, investment and other income on the Condensed Consolidated Statements of Operations (2) Included in Realized gains, net on the Condensed Consolidated Statements of Operations (3) Included in Unrealized gain (loss) on investments and other financial instruments, net (excluding investments in unconsolidated affiliates) on the Condensed Consolidated Statements of Comprehensive Earnings Transfers into or out of the Level 3 fair value category occur when unobservable inputs become more or less significant to the fair value measurement or upon a change in valuation technique. For the nine months ended September 30, 2018, transfers between Level 2 and Level 3 were based on changes in significance of unobservable inputs used associated with a change in the service provider and in the valuation technique used to value our corporate debt securities. The Company’s policy is to recognize transfers between levels in the fair value hierarchy at the end of the reporting period in which they occur. There were no transfers between Level 2 and Level 3 in the three and nine months ended September 30, 2019 and three months ended September 30, 2018, respectively. All of the unrealized gain (loss) on investments and other financial instruments, net (excluding investments in unconsolidated affiliates) on our Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2019 relate to fixed maturity securities considered Level 3 fair value measures. Additional information regarding the fair value of our investment portfolio is included in Note D. The carrying amounts of trade receivables and notes receivable approximate fair value due to their short-term nature. The fair value of our notes payable is included in Note F.

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration