The Hartford 2009 Annual Report Download - page 154

F-5
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
Consolidated Statements of Changes in Equity
For the years ended December 31,
(In millions, except for share data) 2009 2008 2007
Preferred Stock
Balance at beginning of year $ — $ — $ —
Issuance of shares to U.S. Treasury 2,920 — —
Accretion of preferred stock discount on issuance to U.S. Treasury 40 — —
Balance at end of year 2,960 — —
Common Stock 4 3 3
Additional Paid-in Capital
Balance at beginning of year 7,569 6,627 6,321
Issuance of warrants to U.S. Treasury 480 — —
Issuance of shares under discretionary equity issuance plan 887 — —
Issuance of convertible preferred shares — 727 —
Issuance of warrants — 240 —
Reclassification of warrants from other liabilities to equity and extension of warrants’ term 186 — —
Issuance of shares and compensation expense due to incentive and stock compensation plans (126) (36) 257
Tax (expense) benefit on employee stock options and awards and other (11) 11 49
Balance at end of year 8,985 7,569 6,627
Retained Earnings
Balance at beginning of year, before cumulative effect of accounting changes, net of tax 11,336 14,686 12,421
Cumulative effect of accounting changes, net of tax — (3) (41)
Balance at beginning of year, as adjusted 11,336 14,683 12,380
Net income (loss) (887) (2,749) 2,949
Cumulative effect of accounting change, net of tax 912 — —
Accretion of preferred stock discount on issuance to U.S. Treasury (40) — —
Dividends on preferred stock (87) (8) —
Dividends declared on common stock (70) (590) (643)
Balance at end of year 11,164 11,336 14,686
Treasury Stock, at Cost
Balance at beginning of year (2,120) (1,254) (47)
Treasury stock acquired — (1,000) (1,193)
Issuance of shares under incentive and stock compensation plans from treasury stock 187 152 —
Return of shares to treasury stock under incentive and stock compensation plans (3) (18) (14)
Balance at end of year (1,936) (2,120) (1,254)
Accumulated Other Comprehensive Loss, Net of Tax
Balance at beginning of year (7,520) (858) 178
Cumulative effect of accounting change, net of tax (912) — —
Total other comprehensive income (loss) 5,120 (6,662) (1,036)
Balance at end of year (3,312) (7,520) (858)
Total Stockholders’ Equity 17,865 9,268 19,204
Noncontrolling Interest (Note 15)
Balance at beginning of year 92 92 78
Change in noncontrolling interest ownership (56) 57 7
Noncontrolling income (loss) (7) (57) 7
Balance at end of year 29 92 92
Total Equity $ 17,894 $ 9,360 $ 19,296
Outstanding Preferred Shares (in thousands)
Balance at beginning of year 6,048 — —
Issuance of convertible preferred shares — 6,048 —
Conversion of preferred to common shares (6,048) — —
Issuance of shares to U.S. Treasury 3,400 — —
Balance at end of year 3,400 6,048 —
Outstanding Common Shares (in thousands)
Balance at beginning of year 300,579 313,842 323,315
Treasury stock acquired (27) (14,682) (12,878)
Conversion of preferred to common shares 24,194 — —
Issuance of shares under discretionary equity issuance plan 56,109 — —
Issuance of shares under incentive and stock compensation plans 2,356 1,673 3,549
Return of shares to treasury stock under incentive and stock compensation plans (204) (254) (144)
Balance at end of year 383,007 300,579 313,842
See Notes to Consolidated Financial Statements.