The Hartford 2008 Annual Report Download - page 339

Table of Contents
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
Consolidated Statements of Changes in Stockholders’ Equity
For the years ended December 31,
(In millions, except for share data) 2008 2007 2006
Preferred Stock $ — $ — $ —
Common Stock 3 3 3
Additional Paid-in Capital
Balance at beginning of year 6,627 6,321 5,067
Issuance of convertible preferred shares 727 — —
Issuance of warrants 240 — —
Issuance of shares from equity unit contracts — — 1,020
Issuance of shares and compensation expense associated
with incentive and stock compensation plans (36) 257 190
Tax benefit on employee stock options and awards and
other 11 49 44
Balance at end of year 7,569 6,627 6,321
Retained Earnings
Balance at beginning of year, before cumulative effect of
accounting changes, net of tax 14,686 12,421 10,207
Cumulative effect of accounting changes, net of tax (3) (41) —
Balance at beginning of year, as adjusted 14,683 12,380 10,207
Net income (loss) (2,749) 2,949 2,745
Dividends declared on preferred stock (8) — —
Dividends declared on common stock (590) (643) (531)
Balance at end of year 11,336 14,686 12,421
Treasury Stock, at Cost
Balance at beginning of year (1,254) (47) (42)
Treasury stock acquired (1,000) (1,193) —
Issuance of shares under incentive and stock
compensation plans from treasury stock 152 — —
Return of shares to treasury stock under incentive and
stock compensation plans (18) (14) (5)
Balance at end of year (2,120) (1,254) (47)
Accumulated Other Comprehensive Income (Loss), Net of
Tax
Balance at beginning of year (858) 178 90
Total other comprehensive income (loss) (6,662) (1,036) 554
Adjustment to initially apply SFAS 158, net of tax — — (466)
Balance at end of year (7,520) (858) 178
Total stockholders’ equity $ 9,268 $ 19,204 $ 18,876
Outstanding Common Shares (in thousands)
Balance at beginning of year 313,842 323,315 302,152
Issuance of shares from equity unit contracts — — 17,856
Treasury stock acquired (14,682) (12,878) —
Issuance of shares under incentive and stock
compensation plans 1,673 3,549 3,358
Return of shares to treasury stock under incentive and
stock compensation plans (254) (144) (51)
Balance at end of year 300,579 313,842 323,315
Consolidated Statements of Comprehensive Income (Loss)
For the years ended December 31,
(In millions) 2008 2007 2006
Comprehensive Income (Loss)
Net income (loss) $ (2,749) $ 2,949 $ 2,745
Other Comprehensive Income (Loss), Net of Tax
Change in unrealized gain/loss on securities (7,127) (1,417) 89
Source: HARTFORD FINANCIAL S, 10-K, February 12, 2009