Primerica 2010 Annual Report - Direct Selling News

Realized investment gains and losses arereported in the Corporate and OtherDistributed Products segment. We allocatecertain operating expensesassociated with our salesrepresentatives, includingsupervision, training and legalsupport, to our two primaryoperating segments based on theaverage number of licensedrepresentatives in each segmentfor a given period. We also allocate technologyand occupancy costs based on usage. Anyremaining unallocated revenue and expenseitems are reported in the Corporate and OtherDistributed Products segment. We measureincome and loss for the segments on an incomebefore income taxes basis. Informationregarding operations by segment follows:Year ended December 31,2010 2009 2008(In thousands)Revenues:Term life insurance $808,568 $1,742,065 $ 1,673,022Investment andsavings products 361,807 300,140 386,508Corporate and otherdistributed products 191,488 178,196 137,414Total revenues $1,361,863 $2,220,401 $2,196,944Income (loss) beforeincome taxes:Term life insurance $ 299,044 $ 659,012 $ 511,819Investment andsavings products 113,530 93,404 125,164Corporate and otherdistributed products (13,431) 7,539 (283,947)Total income(loss) beforeincome taxes $ 399,143 $ 759,955 $ 353,036Details on the contribution to results ofoperations by our Canadian businesses wereas follows:Year ended December 31,2010 2009 2008Canadian revenues as a percent of totalrevenues 17% 13% 15%Canadian income before income taxes as apercent of total income before income taxes 21% 16% 38%The increase in the percentages of Canadianincome before income taxes for 2010 wasprimarily a result of lower U.S. income beforeincome taxes due to the expense associatedwith the IPO-related equity awards, interestexpense on the Citi note and 401(k) expense.Canada’s 2008 income before income taxeswas a higher percentage of total income beforeincome taxes due to other-than-temporaryimpairments on investmentsecurities, goodwill impairmentand a change in the estimationmethod for DAC and FPB thataffected our U.S. operations toa greater degree than Canada.United States revenues totaled $1.14 billion in2010, $1.92 billion in 2009 and $1.87 billion in2008. Canadian revenues totaled $225.4million in 2010, $298.4 million in 2009 and$323.3 million in 2008.124 Freedom Lives Here