The Hartford 2010 Annual Report Download - page 135

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
F-7
Consolidated Statements of Cash Flows
For the years ended December 31,
(In millions) 2010 2009 2008
Operating Activities
Net income (loss) $ 1,680 $ (887) $ (2,749)
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Amortization of deferred policy acquisition costs and present value of future profits 2,544 4,267 4,271
Additions to deferred policy acquisition costs and present value of future profits (2,648) (2,853) (3,675)
Change in reserve for future policy benefits and unpaid losses and loss adjustment expenses and unearned
premiums (93) 558 1,026
Change in reinsurance recoverables 353 236 300
Change in receivables and other assets 437 380 (4)
Change in payables and accruals (612) (1,271) (103)
Change in accrued and deferred income taxes 561 (246) (2,156)
Net realized capital losses 554 2,010 5,918
Net receipts (disbursements) from investment contracts related to policyholder funds – international
variable annuities 497 1,498 (2,276)
Net (increase) decrease in equity securities, trading (499) (1,501) 2,295
Depreciation and amortization 596 470 361
Goodwill impairment 153 32 745
Other operating activities, net (214) 281 239
Net cash provided by operating activities 3,309 2,974 4,192
Investing Activities
Proceeds from the sale/maturity/prepayment of:
Fixed maturities, available-for-sale 49,155 53,538 26,097
Fixed maturities, fair value option 20 — —
Equity securities, available-for-sale 325 949 616
Mortgage loans 1,723 629 386
Partnerships 367 391 438
Payments for the purchase of:
Fixed maturities, available-for-sale (50,807) (54,346) (32,708)
Fixed maturities, fair value option (75) — —
Equity securities, available-for-sale (163) (307) (714)
Mortgage loans (291) (233) (1,469)
Partnerships (348) (274) (678)
Proceeds from business sold 241 (7) (94)
Derivatives, net (338) (561) 909
Change in policy loans, net (7) 34 (147)
Change in payables for collateral under securities lending, net (46) (2,925) (1,405)
Other investing activities, net (190) (11) (58)
Net cash used for investing activities (434) (3,123) (8,827)
Financing Activities
Deposits and other additions to investment and universal life-type contracts 12,602 14,239 21,015
Withdrawals and other deductions from investment and universal life-type contracts (22,476) (24,341) (25,793)
Net transfers from separate accounts related to investment and universal life-type contracts 8,409 7,203 7,353
Proceeds from issuance of long-term debt 1,090 — 2,670
Repayments at maturity for long-term debt and payments on capital lease obligations (343) (24) (992)
Change in commercial paper — (375) —
Net issuance (repayment) at maturity or settlement of consumer notes (754) (74) 401
Net proceeds from issuance of mandatory convertible preferred stock 556 — —
Net proceeds from issuance of common shares under public offering 1,600 — —
Redemption of preferred stock issued to the U.S. Treasury (3,400) — —
Net proceeds from issuance of convertible preferred stock and warrants — — 1,239
Proceeds from issuance of preferred stock and warrants to U.S. Treasury — 3,400 —
Net proceeds from issuance of common shares under discretionary equity issuance plan — 887 —
Proceeds from net issuance of shares under incentive and stock compensation plans and excess tax benefit 25 17 41
Treasury stock acquired — — (1,000)
Dividends paid on preferred stock (85) (73) —
Dividends paid on common stock (85) (149) (660)
Changes in bank deposits and payments on bank advances (94) (187) —
Net cash provided by (used for) financing activities (2,955) 523 4,274
Foreign exchange rate effect on cash — (43) 161
Net increase (decrease) in cash (80) 331 (200)
Cash - beginning of period 2,142 1,811 2,011
Cash - end of period $ 2,062 $ 2,142 $ 1,811
Supplemental Disclosure of Cash Flow Information
Income taxes paid (received) $ 308
$ (243) $ 253
Interest paid $ 485 $ 475 $ 286
See Notes to Consolidated Financial Statements.