Travelers 2002 Annual Report Download - page 91

The following presents the pro forma impact of ceasing amortiza-
tion of goodwill.
Years ended December 31 2002 2001
(In millions, except per share data)
Reported net income (loss) $218 $(1,088)
Add back goodwill amortization —114
Adjusted net income (loss) $218 $(974)
Basic earnings per share:
Reported net income (loss) $0.94 $(5.22)
Goodwill amortization —0.54
Adjusted net income (loss) $0.94 $(4.68)
Diluted earnings per share:
Reported net income (loss) $0.92 $(5.22)
Goodwill amortization —0.54
Adjusted net income (loss) $0.92 $(4.68)
Additionally, during 2002, we implemented the provisions of SFAS
No. 144, “Accounting for Impairment of Long-Lived Assets”. As a
result of such implementation, we monitor the recoverability of the
value of our long-lived assets to be held and used based on our esti-
mate of the future cash flows (undiscounted and without interest
charges) expected to result from the use of the asset and its eventual
disposition considering any events or changes in circumstances
which indicate that the carrying value of an asset may not be recov-
erable. We monitor the value of our long-lived assets to be disposed
of and report them at the lower of carrying value or fair value less our
estimated cost to sell. We had no impairment adjustments related to
our long-lived assets in 2002.
23. OTHER COMPREHENSIVE INCOME
Other comprehensive income is defined as any change in our
equity from transactions and other events originating from non-owner
sources. In our case, those changes are comprised of our reported
net income, changes in unrealized appreciation and changes in unre-
alized foreign currency translation adjustments. The following sum-
maries present the components of our other comprehensive income,
other than net income, for the last three years.
The St. Paul Companies 2002 Annual Report 89
Income Tax
Year ended December 31, 2002 Pretax Effect After-tax
(In millions)
Unrealized appreciation on investments
arising during period $181 $ 61 $ 120
Less: reclassification adjustment for
realized losses included in net loss (168) (59) (109)
Net change in unrealized appreciation
on investments 349 120 229
Net change in unrealized loss on
foreign currency translation 91 8
Net change in unrealized loss on derivatives 1— 1
Total other comprehensive income $359 $ 121 $ 238
Income Tax
Year ended December 31, 2001 Pretax Effect After-tax
(In millions)
Unrealized depreciation on investments
arising during period $ (652) $ (248) $ (404)
Less: reclassification adjustment for
realized losses included in net income (124) (43) (81)
Net change in unrealized depreciation
on investments (528) (205) (323)
Net change in unrealized loss on
foreign currency translation (12) (4) (8)
Net change in unrealized loss on derivatives (2) — (2)
Total other comprehensive loss $ (542) $ (209) $ (333)
Income Tax
Year ended December 31, 2000 Pretax Effect After-tax
(In millions)
Unrealized appreciation on investments
arising during period $ 902 $ 318 $ 584
Less: reclassification adjustment for
realized gains included in net income 595 208 387
Net change in unrealized appreciation
on investments 307 110 197
Net change in unrealized loss on
foreign currency translation (41) 1 (42)
Total other comprehensive income $ 266 $ 111 $ 155