[X]
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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[ ]
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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New York
(State or other jurisdiction of
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13-2615557
(I.R.S. Employer
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incorporation or organization)
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Identification Number)
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315 Park Avenue South, New York, New York
(Address of principal executive offices)
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10010-3607
(Zip Code)
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Large accelerated filer x
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||
(Do not check if a smaller reporting company)
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September 30,
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December 31,
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|||||||
2010
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2009
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|||||||
ASSETS
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||||||||
Current assets:
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||||||||
Cash and cash equivalents
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$ | 323,284 | $ | 130,475 | ||||
Investments
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110,166 | 84,707 | ||||||
Trade, notes and other receivables, net
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101,725 | 163,863 | ||||||
Prepaids and other current assets
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93,292 | 92,747 | ||||||
Current assets of discontinued operations
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55,310 | 79,682 | ||||||
Total current assets
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683,777 | 551,474 | ||||||
Non-current investments ($424,651 and $210,364 collateralizing repurchase
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||||||||
agreements)
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2,585,700 | 2,128,238 | ||||||
Notes and other receivables, net
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8,431 | 7,191 | ||||||
Intangible assets, net and goodwill
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44,272 | 51,224 | ||||||
Other assets
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534,560 | 518,866 | ||||||
Property, equipment and leasehold improvements, net
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601,518 | 657,898 | ||||||
Investments in associated companies ($1,931,607 and $1,792,683 measured
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||||||||
using fair value option)
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2,817,684 | 2,764,885 | ||||||
Non-current assets of discontinued operations
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31,393 | 82,588 | ||||||
Total
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$ | 7,307,335 | $ | 6,762,364 | ||||
LIABILITIES
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||||||||
Current liabilities:
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||||||||
Trade payables and expense accruals
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$ | 153,291 | $ | 144,483 | ||||
Other current liabilities
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19,988 | 31,960 | ||||||
Securities sold under agreements to repurchase
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410,338 | 198,582 | ||||||
Debt due within one year
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134,924 | 114,010 | ||||||
Current liabilities of discontinued operations
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101,957 | 135,946 | ||||||
Total current liabilities
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820,498 | 624,981 | ||||||
Other non-current liabilities
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85,612 | 102,298 | ||||||
Long-term debt
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1,608,376 | 1,657,779 | ||||||
Non-current liabilities of discontinued operations
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3,350 | 2,809 | ||||||
Total liabilities
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2,517,836 | 2,387,867 | ||||||
Commitments and contingencies
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||||||||
EQUITY
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||||||||
Common shares, par value $1 per share, authorized 600,000,000
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||||||||
shares; 243,317,407 and 243,288,154 shares issued and outstanding,
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||||||||
after deducting 47,525,707 and 47,524,960 shares held in treasury
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243,317 | 243,288 | ||||||
Additional paid-in capital
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1,533,047 | 1,529,064 | ||||||
Accumulated other comprehensive income
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1,158,674 | 985,032 | ||||||
Retained earnings
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1,848,353 | 1,604,263 | ||||||
Total Leucadia National Corporation shareholders’ equity
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4,783,391 | 4,361,647 | ||||||
Noncontrolling interest
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6,108 | 12,850 | ||||||
Total equity
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4,789,499 | 4,374,497 | ||||||
Total
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$ | 7,307,335 | $ | 6,762,364 |
For the Three Month
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For the Nine Month
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|||||||||||||||
Period Ended September 30,
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Period Ended September 30,
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|||||||||||||||
2010
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2009
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2010
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2009
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|||||||||||||
Revenues and Other Income:
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||||||||||||||||
Manufacturing
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$ | 61,240 | $ | 61,274 | $ | 203,235 | $ | 169,928 | ||||||||
Oil and gas drilling services
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31,847 | – | 81,886 | – | ||||||||||||
Gaming entertainment
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31,069 | 26,953 | 86,209 | 79,672 | ||||||||||||
Investment and other income
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61,773 | 45,621 | 192,614 | 153,061 | ||||||||||||
Net securities gains (losses)
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(64 | ) | 9,583 | 170,416 | (20,251 | ) | ||||||||||
185,865 | 143,431 | 734,360 | 382,410 | |||||||||||||
Expenses:
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||||||||||||||||
Manufacturing cost of sales
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53,183 | 54,424 | 174,134 | 146,979 | ||||||||||||
Direct operating expenses:
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||||||||||||||||
Oil and gas drilling services
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27,240 | – | 69,525 | – | ||||||||||||
Gaming entertainment
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22,153 | 20,571 | 62,781 | 59,822 | ||||||||||||
Interest
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31,353 | 31,439 | 94,334 | 97,195 | ||||||||||||
Salaries and incentive compensation
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21,681 | 25,779 | 50,634 | 65,398 | ||||||||||||
Depreciation and amortization
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19,814 | 14,212 | 59,145 | 40,755 | ||||||||||||
Selling, general and other expenses
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69,126 | 34,008 | 154,357 | 216,800 | ||||||||||||
244,550 | 180,433 | 664,910 | 626,949 | |||||||||||||
Income (loss) from continuing operations before income
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||||||||||||||||
taxes and income related to associated companies
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(58,685 | ) | (37,002 | ) | 69,450 | (244,539 | ) | |||||||||
Income taxes
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3,540 | 1,341 | 10,936 | 5,810 | ||||||||||||
Income (loss) from continuing operations before
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||||||||||||||||
income related to associated companies
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(62,225 | ) | (38,343 | ) | 58,514 | (250,349 | ) | |||||||||
Income related to associated companies, net of
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||||||||||||||||
income tax provision (benefit) of $(3,382), $12,941,
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||||||||||||||||
$(8,079) and $25,678
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324,712 | 379,517 | 153,984 | 867,203 | ||||||||||||
Income from continuing operations
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262,487 | 341,174 | 212,498 | 616,854 | ||||||||||||
Income (loss) from discontinued operations, net of income tax
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||||||||||||||||
provision of $29, $339, $0 and $693
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(12,399 | ) | 28,406 | (7,183 | ) | 23,577 | ||||||||||
Gain on disposal of discontinued operations, net of income
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||||||||||||||||
tax provision of $0, $0, $0 and $0
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39,882 | – | 39,882 | – | ||||||||||||
Net income
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289,970 | 369,580 | 245,197 | 640,431 | ||||||||||||
Net (income) loss attributable to the noncontrolling interest
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(2,215 | ) | 619 | (1,107 | ) | 784 | ||||||||||
Net income attributable to Leucadia National
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||||||||||||||||
Corporation common shareholders
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$ | 287,755 | $ | 370,199 | $ | 244,090 | $ | 641,215 | ||||||||
For the Three Month
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For the Nine Month
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|||||||||||||||
Period Ended September 30,
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Period Ended September 30,
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|||||||||||||||
2010
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2009
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2010
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2009
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|||||||||||||
Basic earnings (loss) per common share attributable
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||||||||||||||||
to Leucadia National Corporation common shareholders:
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||||||||||||||
Income from continuing operations
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$ | 1.08 | $ | 1.40 | $ | .88 | $ | 2.56 | ||||||||
Income (loss) from discontinued operations
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(.05 | ) | .12 | (.03 | ) | .10 | ||||||||||
Gain on disposal of discontinued operations
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.15 | – | .15 | – | ||||||||||||
Net income
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$ | 1.18 | $ | 1.52 | $ | 1.00 | $ | 2.66 | ||||||||
Diluted earnings (loss) per common share attributable
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||||||||||||||||
to Leucadia National Corporation common shareholders:
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||||||||||||||||
Income from continuing operations
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$ | 1.07 | $ | 1.38 | $ | .88 | $ | 2.52 | ||||||||
Income (loss) from discontinued operations
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(.05 | ) | .12 | (.03 | ) | .09 | ||||||||||
Gain on disposal of discontinued operations
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.15 | – | .15 | – | ||||||||||||
Net income
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$ | 1.17 | $ | 1.50 | $ | 1.00 | $ | 2.61 | ||||||||
Amounts attributable to Leucadia National Corporation
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||||||||||||||||
common shareholders:
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||||||||||||||||
Income from continuing operations, net of taxes
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$ | 263,165 | $ | 341,793 | $ | 214,284 | $ | 617,638 | ||||||||
Income (loss) from discontinued operations, net of taxes
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(12,399 | ) | 28,406 | (7,183 | ) | 23,577 | ||||||||||
Gain on disposal of discontinued operations, net of taxes
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36,989 | – | 36,989 | – | ||||||||||||
Net income
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$ | 287,755 | $ | 370,199 | $ | 244,090 | $ | 641,215 |
2010
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2009
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|||||||
Net cash flows from operating activities:
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||||||||
Net income
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$ | 245,197 | $ | 640,431 | ||||
Adjustments to reconcile net income to net cash provided by (used for) operations:
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||||||||
Deferred income tax provision (benefit)
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(9,773 | ) | 21,704 | |||||
Depreciation and amortization of property, equipment and leasehold improvements
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60,837 | 44,842 | ||||||
Other amortization
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19,349 | 18,740 | ||||||
Share-based compensation
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3,402 | 8,290 | ||||||
Excess tax benefit from exercise of stock options
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(9 | ) | (7 | ) | ||||
Provision for doubtful accounts
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2,832 | 1,220 | ||||||
Net securities (gains) losses
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(170,416 | ) | 20,251 | |||||
Income related to associated companies
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(145,905 | ) | (892,881 | ) | ||||
Distributions from associated companies
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35,730 | 33,841 | ||||||
Net losses related to real estate, property and equipment, and other assets
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10,066 | 54,143 | ||||||
Income related to Fortescue’s Pilbara project, net of proceeds received
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67,764 | (50,172 | ) | |||||
Common shares received in connection with lawsuit resolution
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– | (15,222 | ) | |||||
(Gain) loss on buyback of debt
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1,029 | (5,978 | ) | |||||
Loss on debt conversion
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– | 25,251 | ||||||
Gain on disposal of discontinued operations
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(39,882 | ) | – | |||||
Losses related to litigation
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14,099 | – | ||||||
Pension plan settlement charge
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12,728 | – | ||||||
Investments classified as trading, net
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– | (1,132 | ) | |||||
Net change in:
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||||||||
Restricted cash
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(273 | ) | (249 | ) | ||||
Trade, notes and other receivables
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(9,108 | ) | 14,856 | |||||
Prepaids and other assets
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(595 | ) | 8,731 | |||||
Trade payables and expense accruals
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(19,901 | ) | (37,064 | ) | ||||
Other liabilities
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(5,656 | ) | (1,732 | ) | ||||
Deferred revenue
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(17,161 | ) | (24,113 | ) | ||||
Income taxes payable
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(7,340 | ) | 14,898 | |||||
Other
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(1,114 | ) | (162 | ) | ||||
Net cash provided by (used for) operating activities
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45,900 | (121,514 | ) | |||||
Net cash flows from investing activities:
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||||||||
Acquisition of property, equipment and leasehold improvements
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(20,108 | ) | (20,000 | ) | ||||
Acquisitions of and capital expenditures for real estate investments
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(8,274 | ) | (8,205 | ) | ||||
Proceeds from disposals of real estate, property and equipment, and other assets
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5,153 | 2,968 | ||||||
Proceeds from disposal of discontinued operations, net of expenses and cash
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||||||||
of operations sold
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70,710 | – | ||||||
Acquisitions, net of cash acquired
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(10,918 | ) | – | |||||
Proceeds from lawsuits and other settlements
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3,565 | 9,500 | ||||||
Advances on notes and other receivables
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(6,473 | ) | (1,282 | ) | ||||
Collections on notes, loans and other receivables
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16,108 | 19,772 | ||||||
Investments in associated companies
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(12,016 | ) | (61,589 | ) | ||||
Capital distributions from associated companies
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31,986 | 105,451 | ||||||
Purchases of investments (other than short-term)
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(860,242 | ) | (1,770,056 | ) | ||||
Proceeds from maturities of investments
|
180,685 | 263,102 | ||||||
Proceeds from sales of investments
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566,416 | 1,592,324 | ||||||
Other
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(1,495 | ) | 519 | |||||
Net cash provided by (used for) investing activities
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(44,903 | ) | 132,504 |
2010
|
2009
|
|||||||
Net cash flows from financing activities:
|
||||||||
Issuance of debt, net of issuance costs
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$ | 212,412 | $ | 47,591 | ||||
Reduction of debt
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(30,735 | ) | (35,257 | ) | ||||
Premium paid on debt conversion
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– | (25,251 | ) | |||||
Issuance of common shares
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619 | 566 | ||||||
Excess tax benefit from exercise of stock options
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9 | 7 | ||||||
Other
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(2,255 | ) | (3,497 | ) | ||||
Net cash provided by (used for) financing activities
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180,050 | (15,841 | ) | |||||
Net increase (decrease) in cash and cash equivalents
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181,047 | (4,851 | ) | |||||
Cash and cash equivalents at January 1, including cash classified as
|
||||||||
current assets of discontinued operations
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154,128 | 237,503 | ||||||
Cash and cash equivalents at September 30, including cash classified as
|
||||||||
current assets of discontinued operations
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$ | 335,175 | $ | 232,652 | ||||
Supplemental disclosures of cash flow information:
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||||||||
Cash paid during the year for:
|
||||||||
Interest
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$ | 120,392 | $ | 126,836 | ||||
Income tax payments (refunds), net
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$ | 20,066 | $ | (4,421 | ) | |||
Non-cash financing activities:
|
||||||||
Issuance of common shares for debt conversion
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$ | – | $ | 120,314 | ||||
Leucadia National Corporation Common Shareholders
|
||||||||||||||||||||||||||||
Common
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Accumulated
|
|||||||||||||||||||||||||||
Shares
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Additional
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Other
|
||||||||||||||||||||||||||
$1 Par
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Paid-In
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Comprehensive
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Retained
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Noncontrolling
|
||||||||||||||||||||||||
Value
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Capital
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Income (Loss)
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Earnings
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Subtotal
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Interest
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Total
|
||||||||||||||||||||||
Balance, January 1, 2009
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$ | 238,499 | $ | 1,413,595 | $ | (29,280 | ) | $ | 1,053,983 | $ | 2,676,797 | $ | 18,594 | $ | 2,695,391 | |||||||||||||
Comprehensive income:
|
||||||||||||||||||||||||||||
Net change in unrealized gain (loss) on
|
||||||||||||||||||||||||||||
investments, net of taxes of $29,820
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813,232 | 813,232 | 813,232 | |||||||||||||||||||||||||
Net change in unrealized foreign
|
||||||||||||||||||||||||||||
exchange gain (loss), net of taxes
|
||||||||||||||||||||||||||||
of $70
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5,014 | 5,014 | 5,014 | |||||||||||||||||||||||||
Net change in unrealized gain (loss)
|
||||||||||||||||||||||||||||
on derivative instruments, net of taxes
|
||||||||||||||||||||||||||||
of $11
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782 | 782 | 782 | |||||||||||||||||||||||||
Net change in pension liability and
|
||||||||||||||||||||||||||||
postretirement benefits, net of taxes
|
||||||||||||||||||||||||||||
of $23
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1,606 | 1,606 | 1,606 | |||||||||||||||||||||||||
Net income
|
641,215 | 641,215 | (784 | ) | 640,431 | |||||||||||||||||||||||
Comprehensive income
|
1,461,849 | (784 | ) | 1,461,065 | ||||||||||||||||||||||||
Contributions from noncontrolling interests
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440 | 440 | ||||||||||||||||||||||||||
Distributions to noncontrolling interests
|
(3,938 | ) | (3,938 | ) | ||||||||||||||||||||||||
Change in interest in consolidated subsidiary
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(1,918 | ) | (1,918 | ) | 1,918 | – | ||||||||||||||||||||||
Share-based compensation expense
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8,290 | 8,290 | 8,290 | |||||||||||||||||||||||||
Issuance of common shares for debt
|
||||||||||||||||||||||||||||
conversion
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5,239 | 115,075 | 120,314 | 120,314 | ||||||||||||||||||||||||
Common shares received from lawsuit
|
||||||||||||||||||||||||||||
resolution
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(636 | ) | (14,686 | ) | (15,322 | ) | (15,322 | ) | ||||||||||||||||||||
Exercise of options to purchase common
|
||||||||||||||||||||||||||||
shares, including excess tax benefit
|
28 | 545 | 573 | 573 | ||||||||||||||||||||||||
Balance, September 30, 2009
|
$ | 243,130 | $ | 1,520,901 | $ | 791,354 | $ | 1,695,198 | $ | 4,250,583 | $ | 16,230 | $ | 4,266,813 | ||||||||||||||
Balance, January 1, 2010
|
$ | 243,288 | $ | 1,529,064 | $ | 985,032 | $ | 1,604,263 | $ | 4,361,647 | $ | 12,850 | $ | 4,374,497 | ||||||||||||||
Comprehensive income:
|
||||||||||||||||||||||||||||
Net change in unrealized gain (loss) on
|
||||||||||||||||||||||||||||
investments, net of taxes of $20,662
|
164,205 | 164,205 | 164,205 | |||||||||||||||||||||||||
Net change in unrealized foreign
|
||||||||||||||||||||||||||||
exchange gain (loss), net of taxes
|
||||||||||||||||||||||||||||
of $96
|
(7,063 | ) | (7,063 | ) | (7,063 | ) | ||||||||||||||||||||||
Net change in unrealized gain (loss)
|
||||||||||||||||||||||||||||
on derivative instruments, net of taxes
|
||||||||||||||||||||||||||||
of $4
|
(1,005 | ) | (1,005 | ) | (1,005 | ) | ||||||||||||||||||||||
Net change in pension liability and
|
||||||||||||||||||||||||||||
postretirement benefits, net of taxes
|
||||||||||||||||||||||||||||
of $246
|
17,505 | 17,505 | 17,505 | |||||||||||||||||||||||||
Net income
|
244,090 | 244,090 | 1,107 | 245,197 | ||||||||||||||||||||||||
Comprehensive income
|
417,732 | 1,107 | 418,839 | |||||||||||||||||||||||||
Contributions from noncontrolling interests
|
1,017 | 1,017 | ||||||||||||||||||||||||||
Distributions to noncontrolling interests
|
(14,042 | ) | (14,042 | ) | ||||||||||||||||||||||||
Change in interest in consolidated subsidiary
|
5,176 | 5,176 | ||||||||||||||||||||||||||
Share-based compensation expense
|
3,402 | 3,402 | 3,402 | |||||||||||||||||||||||||
Exercise of options to purchase common
|
||||||||||||||||||||||||||||
shares, including excess tax benefit
|
30 | 598 | 628 | 628 | ||||||||||||||||||||||||
Purchase of common shares for treasury
|
(1 | ) | (17 | ) | (18 | ) | (18 | ) | ||||||||||||||||||||
Balance, September 30, 2010
|
$ | 243,317 | $ | 1,533,047 | $ | 1,158,674 | $ | 1,848,353 | $ | 4,783,391 | $ | 6,108 | $ | 4,789,499 |
1.
|
Significant Accounting Policies
|
2.
|
Segment Information
|
For the Three Month
|
For the Nine Month
|
|||||||||||||||
Period Ended September 30,
|
Period Ended September 30,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Revenues and other income (a):
|
||||||||||||||||
Manufacturing:
|
||||||||||||||||
Idaho Timber
|
$ | 37,789 | $ | 40,136 | $ | 134,621 | $ | 107,782 | ||||||||
Conwed Plastics
|
23,476 | 21,127 | 68,707 | 62,478 | ||||||||||||
Oil and Gas Drilling Services
|
31,850 | – | 81,899 | – | ||||||||||||
Gaming Entertainment
|
31,080 | 26,971 | 86,246 | 79,745 | ||||||||||||
Domestic Real Estate
|
4,933 | 5,071 | 13,120 | 13,647 | ||||||||||||
Medical Product Development
|
6 | 53 | 11 | 5,125 | ||||||||||||
Other Operations (b)
|
14,262 | 13,233 | 52,171 | 38,889 | ||||||||||||
Corporate (c)
|
42,469 | 36,840 | 297,585 | 74,744 | ||||||||||||
Total consolidated revenues and other income
|
$ | 185,865 | $ | 143,431 | $ | 734,360 | $ | 382,410 | ||||||||
Income (loss) from continuing operations before
|
||||||||||||||||
income taxes:
|
||||||||||||||||
Manufacturing:
|
||||||||||||||||
Idaho Timber
|
$ | (559 | ) | $ | (2,714 | ) | $ | 1,282 | $ | (8,035 | ) | |||||
Conwed Plastics
|
2,043 | 3,067 | 7,776 | 10,217 | ||||||||||||
Oil and Gas Drilling Services
|
(5,374 | ) | – | (16,147 | ) | – | ||||||||||
Gaming Entertainment
|
(7,474 | ) | 1,163 | (4,308 | ) | 3,693 | ||||||||||
Domestic Real Estate
|
(179 | ) | (1,676 | ) | (3,823 | ) | (78,258 | ) | ||||||||
Medical Product Development
|
(9,742 | ) | (4,983 | ) | (22,902 | ) | (13,680 | ) | ||||||||
Other Operations (b)
|
(10,373 | ) | (2,453 | ) | (11,446 | ) | (19,215 | ) | ||||||||
Income related to Associated Companies
|
321,330 | 392,458 | 145,905 | 892,881 | ||||||||||||
Corporate (c)
|
(27,027 | ) | (29,406 | ) | 119,018 | (139,261 | ) | |||||||||
Total consolidated income from
|
||||||||||||||||
continuing operations before income taxes
|
$ | 262,645 | $ | 355,456 | $ | 215,355 | $ | 648,342 |
|
(a)
|
Revenues and other income for each segment include amounts for services rendered and products sold, as well as segment reported amounts classified as investment and other income and net securities gains (losses) in the Company’s consolidated statements of operations.
|
|
(b)
|
Other operations includes pre-tax losses of $4,700,000 and $4,600,000 for the three month periods ended September 30, 2010 and 2009, respectively, and $9,400,000 and $17,700,000 for the nine month periods ended September 30, 2010 and 2009, respectively, for investigation and evaluation of various energy related projects. There were no material operating revenues associated with these activities; however, other income for the three and nine month 2010 periods includes $300,000 and $9,500,000, respectively, with respect to government grants to reimburse the Company for certain of its prior expenditures, which were fully expensed as incurred.
|
|
(c)
|
Corporate includes impairment charges for securities of $200,000 and $2,700,000 for the three month periods ended September 30, 2010 and 2009, respectively, and $1,700,000 and $29,600,000 for the nine month periods ended September 30, 2010 and 2009, respectively. For the nine month 2010 period, security gains include a gain of $66,200,000 from the sale of the Company’s investment in Light and Power Holdings, Ltd. (“LPH”) and a gain of $94,900,000 from the sale of certain of the Company’s common shares of Fortescue Metals Group Ltd (“Fortescue”); see Note 4 for further information.
|
For the Three Month
|
For the Nine Month
|
|||||||||||||||
Period Ended September 30,
|
Period Ended September 30,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Depreciation and amortization expenses:
|
||||||||||||||||
Manufacturing: (a)
|
||||||||||||||||
Idaho Timber
|
$ | 1,334 | $ | 2,365 | $ | 4,811 | $ | 6,484 | ||||||||
Conwed Plastics
|
3,240 | 2,148 | 7,220 | 6,389 | ||||||||||||
Oil and Gas Drilling Services
|
6,460 | – | 19,220 | – | ||||||||||||
Gaming Entertainment
|
4,147 | 4,073 | 12,568 | 12,363 | ||||||||||||
Domestic Real Estate
|
1,518 | 2,358 | 4,749 | 7,094 | ||||||||||||
Medical Product Development
|
221 | 223 | 653 | 613 | ||||||||||||
Other Operations (a)
|
1,861 | 1,993 | 5,216 | 6,337 | ||||||||||||
Corporate
|
5,267 | 5,195 | 15,713 | 13,394 | ||||||||||||
Total consolidated depreciation and
|
||||||||||||||||
amortization expenses
|
$ | 24,048 | $ | 18,355 | $ | 70,150 | $ | 52,674 |
(a)
|
Includes amounts classified as cost of sales.
|
3.
|
Investments in Associated Companies
|
|
A summary of investments in associated companies at September 30, 2010 and December 31, 2009 is as follows:
|
September 30,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
(In thousands)
|
||||||||
Investments in associated companies accounted for
|
||||||||
under the equity method of accounting (a):
|
||||||||
Jefferies High Yield Holdings, LLC (“JHYH”)
|
$ | 303,558 | $ | 318,047 | ||||
Cobre Las Cruces, S.A. (“CLC”)
|
197,246 | 211,645 | ||||||
Garcadia (b)
|
36,319 | 35,359 | ||||||
HomeFed Corporation (“HomeFed”)
|
44,305 | 44,975 | ||||||
Pershing Square IV, L.P. (“Pershing Square”)
|
– | 33,538 | ||||||
Brooklyn Renaissance Plaza
|
30,321 | 29,875 | ||||||
Berkadia Commercial Mortgage LLC (“Berkadia”)
|
230,355 | 240,030 | ||||||
Other
|
43,973 | 58,733 | ||||||
Total accounted for under the equity method of accounting
|
886,077 | 972,202 | ||||||
Investments in associated companies carried at fair value:
|
||||||||
Jefferies Group, Inc. (“Jefferies”)
|
1,102,402 | 1,152,931 | ||||||
AmeriCredit Corp. (“ACF”)
|
829,205 | 639,752 | ||||||
Total accounted for at fair value
|
1,931,607 | 1,792,683 | ||||||
Total investments in associated companies
|
$ | 2,817,684 | $ | 2,764,885 |
(a)
|
Investments accounted for under the equity method of accounting are initially recorded at their original cost and subsequently increased for the Company's share of the investees’ earnings, decreased for the Company's share of the investees’ losses, reduced for dividends received and impairment charges recorded, if any, and increased for any additional investment of capital.
|
(b)
|
For the nine month 2009 period, the Company’s equity in losses of Garcadia includes impairment charges for goodwill and other intangible assets aggregating $32,300,000.
|
2010
|
2009
|
|||||||
ACF:
|
||||||||
Total revenues
|
$ | 722,800 | $ | 1,363,500 | ||||
Income from continuing operations before extraordinary items
|
148,800 | 66,900 | ||||||
Net income
|
148,800 | 66,900 | ||||||
Jefferies:
|
||||||||
Total revenues
|
$ | 1,757,000 | $ | 1,850,700 | ||||
Income from continuing operations before extraordinary items
|
164,800 | 186,500 | ||||||
Net income
|
164,800 | 186,500 |
4.
|
Investments
|
September 30, 2010
|
December 31, 2009
|
|||||||||||||||
Carrying Value
|
Carrying Value
|
|||||||||||||||
Amortized
|
and Estimated
|
Amortized
|
and Estimated
|
|||||||||||||
Cost
|
Fair Value
|
Cost
|
Fair Value
|
|||||||||||||
Investments available for sale
|
$ | 99,959 | $ | 100,271 | $ | 80,788 | $ | 80,805 | ||||||||
Other investments, including accrued interest income
|
9,980 | 9,895 | 4,034 | 3,902 | ||||||||||||
Total current investments
|
$ | 109,939 | $ | 110,166 | $ | 84,822 | $ | 84,707 |
Gross
|
Gross
|
Estimated
|
||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
September 30, 2010
|
||||||||||||||||
Bonds and notes:
|
||||||||||||||||
U.S. Government and agencies
|
$ | 96,266 | $ | 23 | $ | – | $ | 96,289 | ||||||||
All other corporates
|
3,693 | 289 | – | 3,982 | ||||||||||||
Total fixed maturities
|
$ | 99,959 | $ | 312 | $ | – | $ | 100,271 | ||||||||
December 31, 2009
|
||||||||||||||||
Bonds and notes:
|
||||||||||||||||
U.S. Government and agencies
|
$ | 80,404 | $ | 26 | $ | 11 | $ | 80,419 | ||||||||
All other corporates
|
384 | 2 | – | 386 | ||||||||||||
Total fixed maturities
|
$ | 80,788 | $ | 28 | $ | 11 | $ | 80,805 |
September 30, 2010
|
December 31, 2009
|
|||||||||||||||
Carrying Value
|
Carrying Value
|
|||||||||||||||
Amortized
|
and Estimated
|
Amortized
|
and Estimated
|
|||||||||||||
Cost
|
Fair Value
|
Cost
|
Fair Value
|
|||||||||||||
Investments available for sale
|
$ | 1,091,674 | $ | 2,417,991 | $ | 780,048 | $ | 1,964,268 | ||||||||
Other investments
|
167,882 | 167,709 | 163,983 | 163,970 | ||||||||||||
Total non-current investments
|
$ | 1,259,556 | $ | 2,585,700 | $ | 944,031 | $ | 2,128,238 |
Gross
|
Gross
|
Estimated
|
||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
September 30, 2010
|
||||||||||||||||
Bonds and notes:
|
||||||||||||||||
U.S. Government and agencies
|
$ | 5,411 | $ | 6 | $ | – | $ | 5,417 | ||||||||
U.S. Government-Sponsored Enterprises
|
634,957 | 10,866 | 1,694 | 644,129 | ||||||||||||
All other corporates
|
101,481 | 646 | 96 | 102,031 | ||||||||||||
Total fixed maturities
|
741,849 | 11,518 | 1,790 | 751,577 | ||||||||||||
Equity securities:
|
||||||||||||||||
Common stocks:
|
||||||||||||||||
Banks, trusts and insurance companies
|
16,340 | 22,263 | – | 38,603 | ||||||||||||
Industrial, miscellaneous and all other
|
333,485 | 1,294,691 | 365 | 1,627,811 | ||||||||||||
Total equity securities
|
349,825 | 1,316,954 | 365 | 1,666,414 | ||||||||||||
$ | 1,091,674 | $ | 1,328,472 | $ | 2,155 | $ | 2,417,991 | |||||||||
December 31, 2009
|
||||||||||||||||
Bonds and notes:
|
||||||||||||||||
U.S. Government and agencies
|
$ | 25,858 | $ | – | $ | 67 | $ | 25,791 | ||||||||
U.S. Government-Sponsored Enterprises
|
352,251 | 6,391 | 422 | 358,220 | ||||||||||||
All other corporates
|
22,969 | 228 | 13 | 23,184 | ||||||||||||
Total fixed maturities
|
401,078 | 6,619 | 502 | 407,195 | ||||||||||||
Equity securities:
|
||||||||||||||||
Common stocks:
|
||||||||||||||||
Banks, trusts and insurance companies
|
16,340 | 14,925 | – | 31,265 | ||||||||||||
Industrial, miscellaneous and all other
|
362,630 | 1,163,255 | 77 | 1,525,808 | ||||||||||||
Total equity securities
|
378,970 | 1,178,180 | 77 | 1,557,073 | ||||||||||||
$ | 780,048 | $ | 1,184,799 | $ | 579 | $ | 1,964,268 |
Amortized
|
Estimated
|
|||||||
Cost
|
Fair Value
|
|||||||
(In thousands)
|
||||||||
Due after one year through five years
|
$ | 38,782 | $ | 39,280 | ||||
Due after five years through ten years
|
– | – | ||||||
Due after ten years
|
– | – | ||||||
38,782 | 39,280 | |||||||
Mortgage-backed and asset-backed securities
|
703,067 | 712,297 | ||||||
$ | 741,849 | $ | 751,577 |
Net unrealized holding gains arising during the period, net of taxes
|
||||
of $17,516
|
$ | 261,032 | ||
Less: reclassification adjustment for net gains included in net income,
|
||||
net of taxes of $3,146
|
(96,827 | ) | ||
Net change in unrealized gains (losses) on investments, net of taxes
|
||||
of $20,662
|
$ | 164,205 |
5.
|
Inventory
|
September 30,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
Raw materials
|
$ | 5,562 | $ | 5,196 | ||||
Work in process
|
10,499 | 12,352 | ||||||
Finished goods
|
41,503 | 41,421 | ||||||
$ | 57,564 | $ | 58,969 |
6.
|
Intangible Assets, Net and Goodwill
|
September 30,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
Intangibles:
|
||||||||
Customer relationships, net of accumulated amortization of $37,605
|
||||||||
and $33,161
|
$ | 24,890 | $ | 29,515 | ||||
Licenses, net of accumulated amortization of $2,179 and $1,718
|
9,819 | 10,280 | ||||||
Trademarks and tradename, net of accumulated amortization of $761
|
||||||||
and $662
|
1,251 | 1,372 | ||||||
Patents, net of accumulated amortization of $2,360 and $769
|
– | 1,591 | ||||||
Other, net of accumulated amortization of $2,623 and $2,469
|
161 | 315 | ||||||
Goodwill
|
8,151 | 8,151 | ||||||
$ | 44,272 | $ | 51,224 |
7.
|
Accumulated Other Comprehensive Income (Loss)
|
September 30,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
Net unrealized gains on investments
|
$ | 1,198,369 | $ | 1,034,164 | ||||
Net unrealized foreign exchange gains (losses)
|
(3,039 | ) | 4,024 | |||||
Net unrealized gains on derivative instruments
|
– | 1,005 | ||||||
Net minimum pension liability
|
(39,132 | ) | (56,948 | ) | ||||
Net postretirement benefit
|
2,476 | 2,787 | ||||||
$ | 1,158,674 | $ | 985,032 |
8.
|
Derivative Financial Instruments
|
9.
|
Pension Plans and Postretirement Benefits
|
For the Three Month
|
For the Nine Month
|
|||||||||||||||
Period Ended September 30,
|
Period Ended September 30,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Interest cost
|
$ | 2,872 | $ | 3,106 | $ | 9,114 | $ | 9,320 | ||||||||
Expected return on plan assets
|
(1,909 | ) | (1,943 | ) | (6,225 | ) | (5,830 | ) | ||||||||
Actuarial loss
|
389 | 538 | 1,403 | 1,614 | ||||||||||||
Amortization of prior service cost
|
– | 1 | 2 | 2 | ||||||||||||
Net pension expense
|
$ | 1,352 | $ | 1,702 | $ | 4,294 | $ | 5,106 |
10.
|
Share-Based Compensation
|
11.
|
Income Taxes
|
12.
|
Earnings (Loss) Per Common Share
|
For the Three Month
|
For the Nine Month
|
|||||||||||||||
Period Ended
|
Period Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Numerator for earnings (loss) per share:
|
||||||||||||||||
Net income attributable to Leucadia National
|
||||||||||||||||
Corporation common shareholders for basic
|
||||||||||||||||
earnings (loss) per share
|
$ | 287,755 | $ | 370,199 | $ | 244,090 | $ | 641,215 | ||||||||
Interest on 3¾% Convertible Notes
|
846 | 1,016 | 2,750 | 6,180 | ||||||||||||
Net income attributable to Leucadia National
|
||||||||||||||||
Corporation common shareholders for diluted
|
||||||||||||||||
earnings (loss) per share
|
$ | 288,601 | $ | 371,215 | $ | 246,840 | $ | 647,395 | ||||||||
Denominator for earnings (loss) per share:
|
||||||||||||||||
Denominator for basic earnings (loss) per share –
|
||||||||||||||||
weighted average shares
|
243,317 | 243,238 | 243,307 | 240,913 | ||||||||||||
Stock options (a)
|
6 | 45 | 33 | 2 | ||||||||||||
Warrants (b)
|
– | – | – | – | ||||||||||||
3¾% Convertible Notes
|
4,249 | 4,428 | 4,249 | 7,031 | ||||||||||||
Denominator for diluted earnings (loss) per share
|
247,572 | 247,711 | 247,589 | 247,946 |
|
(a)
|
Options to purchase 1,770,000 and 1,756,700 weighted average shares of common stock were outstanding during the three and nine month 2010 periods, respectively, and options to purchase 1,690,000 and 2,261,600 weighted average shares of common stock were outstanding during the three and nine month 2009 periods, respectively, but were not included in the computation of diluted earnings per share because the options’ exercise price was greater than the average market price of the common shares.
|
|
(b)
|
Warrants to purchase 4,000,000 shares of common stock at $28.515 per share were outstanding during the three and nine month periods ended September 30, 2010 and 2009, but were not included in the computation of diluted earnings (loss) per share because the warrants’ exercise price was greater than the average market price of the common shares.
|
|
(c)
|
Outstanding stock options and stock appreciation rights of a subsidiary are not included above since the subsidiary operates at a net loss and the effect is antidilutive.
|
13.
|
Indebtedness
|
14.
|
Fair Value
|
|
September 30, 2010
|
|||||||||||
Fair Value Measurements Using
|
||||||||||||
Total
Fair Value
Measurements
|
Quoted Prices in Active
Markets for Identical
Assets or Liabilities
(Level 1)
|
Significant Other
Observable Inputs
(Level 2)
|
||||||||||
Investments classified as current assets:
|
||||||||||||
Investments available for sale:
|
|
|||||||||||
Bonds and notes:
|
||||||||||||
U.S. Government and agencies
|
$ | 96,289 | $ | 96,289 | $ | – | ||||||
All other corporates
|
3,982 | 3,734 | 248 | |||||||||
Non-current investments:
|
||||||||||||
Investments available for sale:
|
||||||||||||
Bonds and notes:
|
||||||||||||
U.S. Government and agencies
|
5,417 | 822 | 4,595 | |||||||||
U.S. Government-Sponsored Enterprises
|
644,129 | – | 644,129 | |||||||||
All other corporates
|
102,031 | 94,625 | 7,406 | |||||||||
Equity securities:
|
||||||||||||
Common stocks:
|
||||||||||||
Banks, trusts and insurance companies
|
38,603 | 38,603 | – | |||||||||
Industrial, miscellaneous and all other
|
1,627,811 | 1,627,811 | – | |||||||||
Investments in associated companies
|
1,931,607 | 1,931,607 | – | |||||||||
Total
|
$ | 4,449,869 | $ | 3,793,491 | $ | 656,378 | ||||||
Other current liabilities
|
$ | (2,482 | ) | $ | (1,535 | ) | $ | (947 | ) |
December 31, 2009
|
||||||||||||
Fair Value Measurements Using
|
||||||||||||
Total
Fair Value
Measurements
|
Quoted Prices in Active
Markets for Identical
Assets or Liabilities
(Level 1)
|
Significant Other
Observable Inputs
(Level 2)
|
||||||||||
Investments classified as current assets:
|
||||||||||||
Investments available for sale:
|
||||||||||||
Bonds and notes:
|
||||||||||||
U.S. Government and agencies
|
$ | 80,419 | $ | 80,419 | $ | – | ||||||
All other corporates
|
386 | 386 | – | |||||||||
Non-current investments:
|
||||||||||||
Investments available for sale:
|
||||||||||||
Bonds and notes:
|
||||||||||||
U.S. Government and agencies
|
25,791 | 25,791 | – | |||||||||
U.S. Government-Sponsored Enterprises
|
358,220 | – | 358,220 | |||||||||
All other corporates
|
23,184 | 22,998 | 186 | |||||||||
Equity securities:
|
||||||||||||
Common stocks:
|
||||||||||||
Banks, trusts and insurance companies
|
31,265 | 31,265 | – | |||||||||
Industrial, miscellaneous and all other
|
1,525,808 | 1,525,808 | – | |||||||||
Investments in associated companies
|
1,792,683 | 1,792,683 | – | |||||||||
Total
|
$ | 3,837,756 | $ | 3,479,350 | $ | 358,406 | ||||||
Other current liabilities
|
$ | (1,428 | ) | $ | (1,114 | ) | $ | (314 | ) | |||
Other non-current liabilities
|
(1,935 | ) | – | (1,935 | ) | |||||||
Total
|
$ | (3,363 | ) | $ | (1,114 | ) | $ | (2,249 | ) |
September 30, 2010
|
||||||||||||||||
Fair Value Measurements Using
|
||||||||||||||||
Total Fair Value Measurements
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
Significant Other Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
|||||||||||||
Other non-current investments (a)
|
$ | 100 | $ | – | $ | – | $ | 100 |
December 31, 2009
|
||||||||||||||||
Fair Value Measurements Using
|
||||||||||||||||
Total Fair Value Measurements
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
Significant Other Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
|||||||||||||
Long-lived assets held and used (b)
|
$ | 2,900 | $ | – | $ | – | $ | 2,900 | ||||||||
Other non-current investments (a)
|
2,300 | – | – | 2,300 | ||||||||||||
Long-lived assets held for sale (c)
|
2,200 | – | 2,200 | – |
(a)
|
At September 30, 2010 and December 31, 2009, represents investments aggregating $100,000 and $2,300,000, respectively, in non-agency mortgage-backed bond securitizations. The investments in non-agency mortgage-backed bond securitizations are acquisitions of impaired loans, generally at a significant discount to face amounts. The market for these securities is highly illiquid and they rarely trade. The fair values were primarily determined using an income valuation model to calculate the present value of expected future cash flows, which incorporated assumptions regarding potential future rates of delinquency, prepayments, defaults, collateral losses and interest rates.
|
(b)
|
As more fully discussed in the 2009 10-K, Idaho Timber decided to close one of its plants. Idaho Timber evaluated for impairment the plant’s long-lived assets, comprised of buildings, machinery and equipment, and customer relationships intangibles. As of December 31, 2009, the carrying values of long-lived assets held and used and intangible assets were written down to fair values of $700,000 and $0, respectively. The fair values were determined using the present value of expected future cash flows. As of December 31, 2009, the Company also wrote down a real estate property that under GAAP is considered to be held and used, but which the Company had recently decided to sell. The Company wrote down this real estate property to fair value of $2,200,000, primarily using market information for similar assets.
|
(c)
|
Consists of real estate properties for which the fair values were primarily based on appraisals or prices for similar assets.
|
(a)
|
Investments: The fair values of marketable equity securities and fixed maturity securities (which include securities sold not owned) are substantially based on quoted market prices.
|
(b)
|
Cash and cash equivalents: For cash equivalents, the carrying amount approximates fair value.
|
(c)
|
Notes receivable: The fair values of variable rate notes receivable are estimated to be the carrying amount.
|
(d)
|
Long-term and other indebtedness: The fair values of non-variable rate debt are estimated using quoted market prices and estimated rates that would be available to the Company for debt with similar terms. The fair value of variable rate debt is estimated to be the carrying amount. The fair value of certain debt that was previously reported as being in default is the value of its collateral.
|
(e)
|
Swap agreements: The fair values of the interest rate swap and currency rate swap agreements are based on rates currently available for similar agreements.
|
September 30, 2010
|
December 31, 2009
|
|||||||||||||||
Carrying
|
Fair
|
Carrying
|
Fair
|
|||||||||||||
Amount
|
Value
|
Amount
|
Value
|
|||||||||||||
Financial Assets:
|
||||||||||||||||
Investments:
|
||||||||||||||||
Current
|
$ | 110,166 | $ | 110,166 | $ | 84,707 | $ | 84,707 | ||||||||
Non-current
|
2,585,700 | 2,585,700 | 2,128,238 | 2,128,238 | ||||||||||||
Cash and cash equivalents
|
323,284 | 323,284 | 130,475 | 130,475 | ||||||||||||
Notes receivable:
|
||||||||||||||||
Current
|
1,425 | 1,425 | 437 | 437 | ||||||||||||
Non-current
|
2,751 | 2,751 | 2,618 | 2,618 | ||||||||||||
Financial Liabilities:
|
||||||||||||||||
Debt:
|
||||||||||||||||
Current
|
545,262 | 511,815 | 312,592 | 281,481 | ||||||||||||
Non-current
|
1,608,376 | 1,689,414 | 1,657,779 | 1,652,616 | ||||||||||||
Securities sold not owned
|
1,535 | 1,535 | 1,114 | 1,114 | ||||||||||||
Swap agreements:
|
||||||||||||||||
Interest rate swaps
|
(947 | ) | (947 | ) | (1,935 | ) | (1,935 | ) | ||||||||
Foreign currency swaps
|
– | – | (314 | ) | (314 | ) |
For the Three Month
|
For the Nine Month
|
|||||||||||||||
Period Ended September 30,
|
Period Ended September 30,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Revenues and other income:
|
||||||||||||||||
Telecommunications
|
$ | 94,268 | $ | 98,533 | $ | 276,253 | $ | 331,520 | ||||||||
Property management and service fees
|
33,963 | 36,900 | 84,356 | 98,342 | ||||||||||||
Investment and other income
|
2,717 | 1,937 | 8,763 | 3,195 | ||||||||||||
130,948 | 137,370 | 369,372 | 433,057 | |||||||||||||
Expenses:
|
||||||||||||||||
Cost of sales - telecommunications
|
77,326 | 82,900 | 235,943 | 282,574 | ||||||||||||
Direct operating expenses - property
|
||||||||||||||||
management and services
|
21,724 | 25,736 | 62,595 | 76,539 | ||||||||||||
Interest
|
4 | 33 | 11 | 48 | ||||||||||||
Salaries and incentive compensation
|
3,818 | 4,423 | 11,453 | 12,509 | ||||||||||||
Depreciation and amortization
|
2,403 | 2,103 | 7,085 | 6,294 | ||||||||||||
Selling, general and other expenses
|
38,043 | 17,235 | 68,973 | 54,628 | ||||||||||||
143,318 | 132,430 | 386,060 | 432,592 | |||||||||||||
Income (loss) from discontinued
|
||||||||||||||||
operations before income taxes
|
(12,370 | ) | 4,940 | (16,688 | ) | 465 | ||||||||||
Income tax provision
|
29 | 339 | – | 693 | ||||||||||||
Income (loss) from discontinued
|
||||||||||||||||
operations after income taxes
|
$ | (12,399 | ) | $ | 4,601 | $ | (16,688 | ) | $ | (228 | ) |
17.
|
Subsequent Events
|
For the Three Month
|
For the Nine Month
|
|||||||||||||||
Period Ended
|
Period Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Publicly traded securities
|
$ | – | $ | – | $ | – | $ | 14,400 | ||||||||
Non-public securities and private equity funds
|
– | 100 | – | 2,200 | ||||||||||||
Non-agency mortgage-backed bond securitizations
|
200 | 2,600 | 1,700 | 13,000 | ||||||||||||
Totals
|
$ | 200 | $ | 2,700 | $ | 1,700 | $ | 29,600 |
For the Three Month
|
For the Nine Month
|
|||||||||||||||
Period Ended September 30,
|
Period Ended September 30,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Income (loss) from continuing operations
|
||||||||||||||||
before income taxes and income
|
||||||||||||||||
related to associated companies:
|
||||||||||||||||
Manufacturing:
|
||||||||||||||||
Idaho Timber
|
$ | (559 | ) | $ | (2,714 | ) | $ | 1,282 | $ | (8,035 | ) | |||||
Conwed Plastics
|
2,043 | 3,067 | 7,776 | 10,217 | ||||||||||||
Oil and Gas Drilling Services
|
(5,374 | ) | – | (16,147 | ) | – | ||||||||||
Gaming Entertainment
|
(7,474 | ) | 1,163 | (4,308 | ) | 3,693 | ||||||||||
Domestic Real Estate
|
(179 | ) | (1,676 | ) | (3,823 | ) | (78,258 | ) | ||||||||
Medical Product Development
|
(9,742 | ) | (4,983 | ) | (22,902 | ) | (13,680 | ) | ||||||||
Other Operations
|
(10,373 | ) | (2,453 | ) | (11,446 | ) | (19,215 | ) | ||||||||
Corporate
|
(27,027 | ) | (29,406 | ) | 119,018 | (139,261 | ) | |||||||||
Total consolidated income (loss) from continuing
|
||||||||||||||||
operations before income taxes and income
|
||||||||||||||||
related to associated companies
|
(58,685 | ) | (37,002 | ) | 69,450 | (244,539 | ) | |||||||||
Income related to associated companies
|
||||||||||||||||
before income taxes
|
321,330 | 392,458 | 145,905 | 892,881 | ||||||||||||
Total consolidated income from
|
||||||||||||||||
continuing operations before income taxes
|
262,645 | 355,456 | 215,355 | 648,342 | ||||||||||||
Income taxes:
|
||||||||||||||||
Income (loss) from continuing operations before
|
||||||||||||||||
income related to associated companies
|
3,540 | 1,341 | 10,936 | 5,810 | ||||||||||||
Associated companies
|
(3,382 | ) | 12,941 | (8,079 | ) | 25,678 | ||||||||||
Total income taxes
|
158 | 14,282 | 2,857 | 31,488 | ||||||||||||
Income from continuing operations
|
$ | 262,487 | $ | 341,174 | $ | 212,498 | $ | 616,854 |
For the Three Month
|
For the Nine Month
|
|||||||||||||||
Period Ended
|
Period Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Revenues and other income
|
$ | 37,789 | $ | 40,136 | $ | 134,621 | $ | 107,782 | ||||||||
Expenses:
|
||||||||||||||||
Cost of sales
|
35,416 | 39,741 | 124,020 | 105,103 | ||||||||||||
Salaries and incentive compensation
|
1,300 | 1,407 | 4,309 | 4,285 | ||||||||||||
Depreciation and amortization
|
1,034 | 1,076 | 3,105 | 3,242 | ||||||||||||
Selling, general and other expenses
|
598 | 626 | 1,905 | 3,187 | ||||||||||||
38,348 | 42,850 | 133,339 | 115,817 | |||||||||||||
|
||||||||||||||||
Income (loss) before income taxes
|
$ | (559 | ) | $ | (2,714 | ) | $ | 1,282 | $ | (8,035 | ) |
For the Three Month
|
For the Nine Month
|
|||||||||||||||
Period Ended
|
Period Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Revenues and other income
|
$ | 23,476 | $ | 21,127 | $ | 68,707 | $ | 62,478 | ||||||||
Expenses:
|
||||||||||||||||
Cost of sales
|
17,767 | 14,683 | 50,114 | 41,876 | ||||||||||||
Salaries and incentive compensation
|
1,824 | 1,711 | 5,182 | 5,174 | ||||||||||||
Depreciation and amortization
|
68 | 74 | 243 | 219 | ||||||||||||
Selling, general and other expenses
|
1,774 | 1,592 | 5,392 | 4,992 | ||||||||||||
21,433 | 18,060 | 60,931 | 52,261 | |||||||||||||
|
||||||||||||||||
Income before income taxes
|
$ | 2,043 | $ | 3,067 | $ | 7,776 | $ | 10,217 |
For the Three
|
For the Nine
|
|||||||
Month Period Ended
|
Month Period Ended
|
|||||||
September 30,
|
September 30,
|
|||||||
2010
|
2010
|
|||||||
Revenues and other income
|
$ | 31,850 | $ | 81,899 | ||||
Expenses:
|
||||||||
Direct operating expenses
|
27,240 | 69,525 | ||||||
Interest
|
299 | 970 | ||||||
Salaries and incentive compensation
|
1,273 | 2,576 | ||||||
Depreciation and amortization
|
6,460 | 19,220 | ||||||
Selling, general and other expenses
|
1,952 | 5,755 | ||||||
37,224 | 98,046 | |||||||
|
||||||||
Loss before income taxes
|
$ | (5,374 | ) | $ | (16,147 | ) |
For the Three Month
|
For the Nine Month
|
|||||||||||||||
Period Ended
|
Period Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Revenues and other income
|
$ | 31,080 | $ | 26,971 | $ | 86,246 | $ | 79,745 | ||||||||
Expenses:
|
||||||||||||||||
Direct operating expenses
|
22,153 | 20,571 | 62,781 | 59,822 | ||||||||||||
Interest
|
42 | 114 | 244 | 384 | ||||||||||||
Salaries and incentive compensation
|
504 | 502 | 1,479 | 1,510 | ||||||||||||
Depreciation and amortization
|
4,147 | 4,073 | 12,568 | 12,363 | ||||||||||||
Selling, general and other expenses
|
11,708 | 548 | 13,482 | 1,973 | ||||||||||||
38,554 | 25,808 | 90,554 | 76,052 | |||||||||||||
|
||||||||||||||||
Income (loss) before income taxes
|
$ | (7,474 | ) | $ | 1,163 | $ | (4,308 | ) | $ | 3,693 |
For the Three Month
|
For the Nine Month
|
|||||||||||||||
Period Ended
|
Period Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Revenues and other income
|
$ | 4,933 | $ | 5,071 | $ | 13,120 | $ | 13,647 | ||||||||
Expenses:
|
||||||||||||||||
Interest
|
509 | 510 | 1,526 | 1,802 | ||||||||||||
Depreciation and amortization
|
1,518 | 2,358 | 4,749 | 7,094 | ||||||||||||
Other operating expenses
|
3,085 | 3,879 | 10,668 | 83,009 | ||||||||||||
5,112 | 6,747 | 16,943 | 91,905 | |||||||||||||
Loss before income taxes
|
$ | (179 | ) | $ | (1,676 | ) | $ | (3,823 | ) | $ | (78,258 | ) |
For the Three Month
|
For the Nine Month
|
|||||||||||||||
Period Ended
|
Period Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Revenues and other income
|
$ | 6 | $ | 53 | $ | 11 | $ | 5,125 | ||||||||
Expenses:
|
||||||||||||||||
Salaries and incentive compensation
|
2,515 | 1,907 | 6,691 | 6,922 | ||||||||||||
Depreciation and amortization
|
221 | 223 | 653 | 613 | ||||||||||||
Selling, general and other expenses
|
7,012 | 2,906 | 15,569 | 11,270 | ||||||||||||
9,748 | 5,036 | 22,913 | 18,805 | |||||||||||||
|
||||||||||||||||
Loss before income taxes
|
$ | (9,742 | ) | $ | (4,983 | ) | $ | (22,902 | ) | $ | (13,680 | ) |
For the Three Month
|
For the Nine Month
|
|||||||||||||||
Period Ended
|
Period Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Revenues and other income
|
$ | 14,262 | $ | 13,233 | $ | 52,171 | $ | 38,889 | ||||||||
Expenses:
|
||||||||||||||||
Interest
|
2 | 7 | 11 | 25 | ||||||||||||
Salaries and incentive compensation
|
2,228 | 2,076 | 6,401 | 6,452 | ||||||||||||
Depreciation and amortization
|
1,100 | 1,213 | 2,893 | 3,830 | ||||||||||||
Selling, general and other expenses
|
21,305 | 12,390 | 54,312 | 47,797 | ||||||||||||
24,635 | 15,686 | 63,617 | 58,104 | |||||||||||||
|
||||||||||||||||
Loss before income taxes
|
$ | (10,373 | ) | $ | (2,453 | ) | $ | (11,446 | ) | $ | (19,215 | ) |
For the Three Month
|
For the Nine Month
|
|||||||||||||||
Period Ended
|
Period Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Revenues and other income (including net
|
||||||||||||||||
securities gains (losses))
|
$ | 42,469 | $ | 36,840 | $ | 297,585 | $ | 74,744 | ||||||||
Expenses:
|
||||||||||||||||
Interest
|
30,501 | 30,808 | 91,583 | 94,984 | ||||||||||||
Salaries and incentive compensation
|
11,727 | 17,812 | 22,922 | 39,920 | ||||||||||||
Depreciation and amortization
|
5,267 | 5,195 | 15,713 | 13,394 | ||||||||||||
Selling, general and other expenses
|
22,001 | 12,431 | 48,349 | 65,707 | ||||||||||||
69,496 | 66,246 | 178,567 | 214,005 | |||||||||||||
|
||||||||||||||||
Income (loss) before income taxes
|
$ | (27,027 | ) | $ | (29,406 | ) | $ | 119,018 | $ | (139,261 | ) |
For the Three Month
|
For the Nine Month
|
|||||||||||||||
Period Ended September 30,
|
Period Ended September 30,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
ACF
|
$ | 211,539 | $ | 73,320 | $ | 182,216 | $ | 268,297 | ||||||||
Jefferies
|
81,866 | 286,654 | (39,597 | ) | 639,869 | |||||||||||
Berkadia
|
3,043 | – | 13,336 | – | ||||||||||||
JHYH
|
72 | 23,596 | 2,588 | 30,620 | ||||||||||||
Pershing Square
|
2,110 | 6,873 | 3,033 | (4,638 | ) | |||||||||||
HomeFed Corporation
|
222 | 678 | (670 | ) | 388 | |||||||||||
Garcadia
|
4,030 | 2,738 | 11,364 | (26,201 | ) | |||||||||||
Keen Energy
|
– | (3,753 | ) | – | (6,457 | ) | ||||||||||
CLC
|
23,804 | 5,697 | (13,064 | ) | 7,758 | |||||||||||
Wintergreen
|
– | – | – | 1,078 | ||||||||||||
Shortplus
|
– | – | – | (397 | ) | |||||||||||
Other
|
(5,356 | ) | (3,345 | ) | (13,301 | ) | (17,436 | ) | ||||||||
Income related to associated companies
|
||||||||||||||||
before income taxes
|
321,330 | 392,458 | 145,905 | 892,881 | ||||||||||||
Income tax (expense) benefit
|
3,382 | (12,941 | ) | 8,079 | (25,678 | ) | ||||||||||
Income related to associated companies,
|
||||||||||||||||
net of taxes
|
$ | 324,712 | $ | 379,517 | $ | 153,984 | $ | 867,203 |
(a)
|
The Company's management evaluated, with the participation of the Company's principal executive and principal financial officers, the effectiveness of the Company's disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), as of September 30, 2010. Based on their evaluation, the Company's principal executive and principal financial officers concluded that the Company's disclosure controls and procedures were effective as of September 30, 2010.
|
(a)
|
There has been no change in the Company's internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the Company's fiscal quarter ended September 30, 2010, that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.
|
Item 6.
|
Exhibits.
|
|
10.1
|
Form of Shareholder Support and Voting Agreement dated as of July 21, 2010, among General Motors Holdings LLC, Goalie Texas Holdco Inc., Leucadia National Corporation, Phlcorp, Inc., Baldwin Enterprises, Inc., BEI Arch Holdings, LLC and BEI-Longhorn, LLC (filed as Exhibit 10.1 to the Company’s Form 8-K filed July 22, 2010).
|
|
31.1
|
Certification of Chairman of the Board and Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
31.2
|
Certification of President pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
31.3
|
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
32.1
|
Certification of Chairman of the Board and Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
32.2
|
Certification of President pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
32.3
|
Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
101
|
Financial statements from the Quarterly Report on Form 10-Q of Leucadia National Corporation for the quarter ended September 30, 2010, formatted in Extensible Business Reporting Language (XBRL): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statements of Cash Flows, (iv) the Consolidated Statements of Changes in Shareholders Equity and (v) the Notes to Consolidated Financial Statements.
|
LEUCADIA NATIONAL CORPORATION | |||
(Registrant) | |||
Date: November 5, 2010
|
By:
|
/s/ Barbara L. Lowenthal | |
Name: Barbara L. Lowenthal | |||
Title: Vice President and Comptroller | |||
(Chief Accounting Officer) |
|
10.1
|
Form of Shareholder Support and Voting Agreement dated as of July 21, 2010, among General Motors Holdings LLC, Goalie Texas Holdco Inc., Leucadia National Corporation, Phlcorp, Inc., Baldwin Enterprises, Inc., BEI Arch Holdings, LLC and BEI-Longhorn, LLC (filed as Exhibit 10.1 to the Company’s Form 8-K filed July 22, 2010).
|
|
31.1
|
Certification of Chairman of the Board and Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
31.2
|
Certification of President pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
31.3
|
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
32.1
|
Certification of Chairman of the Board and Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
32.2
|
Certification of President pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
32.3
|
Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
101
|
Financial statements from the Quarterly Report on Form 10-Q of Leucadia National Corporation for the quarter ended September 30, 2010, formatted in Extensible Business Reporting Language (XBRL): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statements of Cash Flows, (iv) the Consolidated Statements of Changes in Shareholders Equity and (v) the Notes to Consolidated Financial Statements.
|