Notes to Consolidated Financial Statements
  

Note T — Business Acquisitions

On November 30, 1999, the Company acquired all of the outstanding common stock of Balboa Life Insurance Company and Balboa Insurance Company (collectively "Balboa") for a cash price of $441 million. The purchase price is subject to adjustment based upon completion of a post-closing audit.

  Balboa is a leading writer of credit-related insurance, specializing in creditor-placed auto and homeowner insurance. Balboa is licensed to underwrite in ail 50 states.

  The acquisition of Balboa was accounted for using the purchase method of accounting. Accordingly, a portion of the purchase price was allocated to assets acquired and liabilities assumed based on their estimated fair market value at the date of acquisition. The fair value of identifiable assets acquired and liabilities assumed was $895 million, respectively. Goodwill of $36 million is amortized over a period of 25 years.

  The results of operations for Balboa are included in the Company's consolidated results of operations from December 1, 1999. The following table sets forth certain unaudited consolidated earnings data for the years ended February 29, 2000, and February 28, 1999, as if the acquisition of Balboa had been consummated March 1, 1998.

 
Year ended February 29 (28), 
(Dollar amounts in millions) 
2000 
1999 
Statements of Earnings: 
(Unaudited) 
Revenues 
$ 
2,193,550 
$ 
2,245,253 
Net Earnings 
$ 
422,309 
$ 
404,717 
Per Share 
  Basic 
$ 
3.73 
$ 
3.63 
  Diluted 
$ 
3.62 
$ 
3.46 

  In management's opinion, these unaudited pro forma amounts are not necessarily indicative of what the actual consolidated results of operations might have been if the acquisition had been effective at March 1, 1998.