|
The Company provides its title services through both direct
operations and agents throughout the United States. It also
offers title services in Australia, the Bahama Islands, Canada,
England, Guam, Ireland, Mexico, Puerto Rico, Scotland, South
Korea, the U.S. Virgin Islands and other countries abroad.
The international operations account for less than 1% of the
Company's income before income taxes and minority interests.
Home warranty services are provided in 27 states throughout
the United States. Property and casualty insurance is offered
nationwide. Trust and other services products are provided
in Southern California. The products offered by the four
segments included in the Information Technology group
are provided nationwide.
Corporate consists primarily of investment gains and losses,
personnel and other operating expenses associated with the
Company's corporate facilities, certain technology initiatives
and unallocated interest expense.
Selected financial information about the Company's
operations by segment for each of the past three years is
as follows:
| (in thousands) |
Revenues |
|
Depreciation
and
amortization |
|
Income (loss)
before
income taxes
and minority
interests |
|
Assets |
|
Investment in
affiliates |
|
Capital
expenditures |
|
| 2002 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Title Insurance |
$ |
3,437,726 |
|
|
$ |
42,092 |
|
|
$ |
271,720 |
|
|
$ |
1,618,186 |
|
|
$ |
66,939 |
|
|
$ |
45,014 |
|
| Specialty Insurance |
|
153,205 |
|
|
1,965 |
|
|
24,465 |
|
|
282,199 |
|
|
– |
|
|
1,829 |
|
Trust and
Other Services |
|
41,687 |
|
|
1,091 |
|
|
13,548 |
|
|
147,039 |
|
|
3,558 |
|
|
299 |
|
| Mortgage Information |
|
485,206 |
|
|
10,161 |
|
|
146,849 |
|
|
433,471 |
|
|
– |
|
|
12,130 |
|
| Property Information |
|
279,754 |
|
|
18,729 |
|
|
71,459 |
|
|
450,355 |
|
|
23,787 |
|
|
14,096 |
|
| Credit Information |
|
221,761 |
|
|
11,355 |
|
|
39,266 |
|
|
161,964 |
|
|
13,457 |
|
|
7,732 |
|
| Screening Information |
|
100,888 |
|
|
4,050 |
|
|
2,459 |
|
|
157,051 |
|
|
– |
|
|
3,964 |
|
| Corporate |
|
(16,018 |
) |
|
7,386 |
|
|
(119,859 |
) |
|
147,780 |
|
|
– |
|
|
9,608 |
|
|
| |
$ |
4,704,209 |
|
$ |
96,829 |
|
$ |
449,907 |
|
$ |
3,398,045 |
|
$ |
107,741 |
|
$ |
94,672 |
|
|
| 2001 |
|
| Title Insurance |
$ |
2,690,677 |
|
$ |
49,208 |
|
$ |
173,654 |
|
$ |
1,303,832 |
|
$ |
49,000 |
|
$ |
48,197 |
|
| Specialty Insurance |
|
120,558 |
|
|
3,671 |
|
|
11,929 |
|
|
204,326 |
|
|
– |
|
|
2,383 |
|
Trust and
Other Services |
|
39,661 |
|
|
1,173 |
|
|
12,269 |
|
|
138,899 |
|
|
3,756 |
|
|
651 |
|
| Mortgage Information |
|
420,118 |
|
|
11,233 |
|
|
129,751 |
|
|
379,170 |
|
|
– |
|
|
21,187 |
|
| Property Information |
|
227,900 |
|
|
23,355 |
|
|
35,321 |
|
|
394,197 |
|
|
26,277 |
|
|
25,549 |
|
| Credit Information |
|
201,029 |
|
|
12,145 |
|
|
30,062 |
|
|
175,759 |
|
|
4,947 |
|
|
17,970 |
|
| Screening Information |
|
49,326 |
|
|
1,810 |
|
|
(286 |
) |
|
58,360 |
|
|
– |
|
|
4,122 |
|
| Corporate |
|
1,454 |
|
|
5,753 |
|
|
(63,160 |
) |
|
182,720 |
|
|
– |
|
|
9,162 |
|
|
| |
$ |
3,750,723 |
|
$ |
108,348 |
|
$ |
329,540 |
|
$ |
2,837,263 |
|
$ |
83,980 |
|
$ |
129,221 |
|
|
| 2000 |
|
| Title Insurance |
$ |
2,101,571 |
|
$ |
34,536 |
|
$ |
88,091 |
|
$ |
1,051,214 |
|
$ |
40,410 |
|
$ |
69,958 |
|
| Specialty Insurance |
|
124,450 |
|
|
2,305 |
|
|
17,048 |
|
|
209,388 |
|
|
– |
|
|
5,462 |
|
Trust and
Other Services |
|
34,914 |
|
|
1,141 |
|
|
10,350 |
|
|
117,432 |
|
|
4,158 |
|
|
2,204 |
|
| Mortgage Information |
|
308,525 |
|
|
12,021 |
|
|
46,112 |
|
|
327,364 |
|
|
– |
|
|
21,381 |
|
| Property Information |
|
173,078 |
|
|
23,128 |
|
|
5,998 |
|
|
342,330 |
|
|
18,406 |
|
|
27,793 |
|
| Credit Information |
|
156,855 |
|
|
7,399 |
|
|
15,278 |
|
|
91,152 |
|
|
673 |
|
|
7,660 |
|
| Screening Information |
|
38,455 |
|
|
1,248 |
|
|
1,009 |
|
|
19,684 |
|
|
– |
|
|
3,612 |
|
| Corporate |
|
(3,593 |
) |
|
4,558 |
|
|
(30,010 |
) |
|
41,173 |
|
|
– |
|
|
8,971 |
|
|
| |
$ |
2,934,255 |
|
$ |
86,336 |
|
$ |
153,876 |
|
$ |
2,199,737 |
|
$ |
63,647 |
|
$ |
147,041 |
|
|
|
|
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Stockholders of The First
American Corporation:
In our opinion, the accompanying consolidated balance
sheets and the related consolidated statements of income
and comprehensive income, of shareholders' equity and of
cash flows present fairly, in all material respects, the financial
position of The First American Corporation and its subsidiaries
at December 31, 2002 and 2001, and the results of their
operations and their cash flows for each of the three years
in the period ended December 31, 2002, in conformity with
accounting principles generally accepted in the United States
of America. These financial statements are the responsibility
of the Company's management; our responsibility is to express
an opinion on these financial statements based on our audits.
We conducted our audits of these statements in accordance
with auditing standards generally accepted in the United States
of America, which require that we plan and perform the audit
to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by
management, and evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable
basis for our opinion.
As discussed in Note 5 to the financial statements, in 2002
the Company changed its method of accounting for goodwill
and other intangible assets.
PricewaterhouseCoopers LLP
San Francisco, California
February 11, 2003
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