Travelers 2004 Annual Report Download - page 226

SCHEDULE II
THE ST. PAUL TRAVELERS COMPANIES, INC.
(Parent Company Only)
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
(in millions)
CONDENSED STATEMENT OF CASH FLOWS
For the period ended December 31,* 2004 2003 2002
Cash flows from operating activities
Net income (loss) ............................................................. $ 955 $ 1,696 $ (27)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Equity in net (income) loss of subsidiaries ...................................... (1,100) (1,761) 478
Dividends received from consolidated subsidiaries ............................... 1,880 761 60
Capital contributed to subsidiaries ............................................ (940) (1,445) —
Deferred federal income tax benefit (expense) ................................... 259 67 (93)
Income taxes receivable (payable) ............................................ (389) (36) (6)
Recoveries from former affiliate .............................................. —361 58
Net transfer of pension asset and post-retirement liability .......................... (247) ——
Other ................................................................... 12 31 34
Net cash provided by (used in) operating activities ............................. 430 (326) 504
Cash flows from investing activities
Short-term securities, (purchases) sales, net ......................................... (87) (180) 143
Other investments, net .......................................................... 20 — 403
Net cash provided by (used in) investing activities .............................. (67) (180) 546
Cash flows from financing activities
Issuance of debt ............................................................... 302 1,382 1,417
Payment of debt ............................................................... (173) (550) —
Payment of note to former affiliate ................................................ —— (6,299)
Initial public offering .......................................................... —— 4,090
Treasury stock purchased ....................................................... —(40) —
Treasury stock acquired—net employee stock-based compensation ...................... (1) (18) (4)
Issuance of common stock-employee stock options ................................... 68 40 10
Dividends to shareholders ....................................................... (561) (282) —
Dividends to former affiliate ..................................................... —— (158)
Receipts from former subsidiaries ................................................. —— 158
Payment of dividend on subsidiary’s preferred stock .................................. —(5) (2)
Transfer of employee benefit obligations to former affiliates ............................ —(22) (172)
Transfer of lease obligations to former affiliate ...................................... —— (88)
Other ....................................................................... 19 ——
Net cash provided by (used in) financing activities ............................. (346) 505 (1,048)
Net increase (decrease) in cash ................................................... 17 (1) 2
Cash at beginning of period ..................................................... —2—
Cash at end of period ......................................................... $17$1$2
Supplemental disclosure of cash flow information
Cash received during the year for taxes ............................................ 219 $85 24
Cash paid during the year for interest .............................................. $ 142 $82$22
* Data for 2004 represents results of The St. Paul Travelers Companies, Inc. (parent company only) for the
nine-month period from the merger date of April 1, 2004 through December 31, 2004. Data for prior periods
represents historical data for Travelers Property Casualty Corp. (parent company only) for the twelve
months ended December 31, 2003 and 2002.
The condensed financial statements should be read in conjunction with the consolidated financial statements
and notes thereto.
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