Travelers 2004 Annual Report Download - page 128

THE ST. PAUL TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
(in millions)
For the year ended December 31, 2004 2003 2002
Convertible preferred stock—stock ownership plan
Balance, beginning of year ................................................................. $— $— $—
Preferred stock assumed at merger ........................................................... 219 ——
Redemptions during year .................................................................. (26) ——
Balance, end of year ...................................................................... 193 ——
Guaranteed obligation—stock ownership plan
Balance, beginning of year ................................................................. ———
Obligations assumed at merger .............................................................. (15) ——
Principal payments ....................................................................... 10 ——
Balance, end of year ...................................................................... (5) ——
Total preferred shareholders’ equity ...................................................... 188 ——
Common stock and additional paid-in capital
Balance, beginning of year ................................................................. 8,715 8,628 4,441
Shares issued for merger ................................................................... 8,608 ——
Adjustment for treasury stock cancelled and retired at merger ...................................... (91) ——
Net proceeds from initial public offering ...................................................... —— 4,090
Net shares issued under employee stock-based compensation plans ................................. 204 79 64
Merger-related fees, tax benefit on employee stock-based compensation, and other changes .............. (22) 833
Balance, end of year ...................................................................... 17,414 8,715 8,628
Retained earnings
Balance, beginning of year ................................................................. 2,290 880 6,004
Net income (loss) ........................................................................ 955 1,696 (27)
Receipts from former subsidiaries ........................................................... —— 157
Dividends .............................................................................. (529) (286) (5,254)
Minority interest and other ................................................................. 28 ——
Balance, end of year ...................................................................... 2,744 2,290 880
Accumulated other changes in equity from nonowner sources, net of tax
Balance, beginning of year ................................................................. 1,086 657 241
Change in net unrealized gain (loss) on investment securities, net of reclassification adjustment ........... (192) 328 476
Change in minimum pension liability adjustment ............................................... —62 (68)
Net change in unrealized foreign currency translation and other changes ............................. 58 39 8
Balance, end of year ...................................................................... 952 1,086 657
Treasury stock (at cost)
Balance, beginning of year ................................................................. (74) (5) —
Treasury stock acquired ................................................................... —(40) —
Net shares issued under employee stock-based compensation plans ................................. (31) (29) (5)
Treasury stock cancelled and retired at merger ................................................. 91 ——
Balance, end of year ...................................................................... (14) (74) (5)
Unearned compensation
Balance, beginning of year ................................................................. (30) (23) —
Net issuance of restricted stock under employee stock-based compensation plans ...................... (64) (32) (29)
Unvested equity-based awards assumed in merger ............................................... (43) ——
Equity-based award amortization ............................................................ 54 25 6
Balance, end of year ...................................................................... (83) (30) (23)
Total common shareholders’ equity ...................................................... 21,013 11,987 10,137
Total shareholders’ equity .............................................................. $21,201 $11,987 $10,137
Common shares outstanding
Balance, beginning of year ................................................................. 435.8 435.1 333.3
Common stock assumed at merger ........................................................... 229.3 ——
Shares issued in Initial Public Offering ....................................................... —— 100.1
Net shares issued under employee stock-based compensation plans ................................. 5.6 1.8 1.7
Treasury stock acquired ................................................................... (0.4) (1.1) —
Balance, end of year ...................................................................... 670.3 435.8 435.1
Summary of changes in equity from nonowner sources
Net income (loss) ........................................................................ $ 955 $ 1,696 $ (27)
Other changes in equity from nonowner sources, net of tax ........................................ (134) 429 415
Total changes in equity from nonowner sources ................................................ $ 821 $ 2,125 $ 388
See notes to consolidated financial statements.
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