Travelers 2005 Annual Report Download - page 144

See notes to consolidated financial statements.
132
THE ST. PAUL TRAVELERS COMPANIES, INC.AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
(in millions)
For the year ended December 31,2005 2004 2003
Convertible preferred stock—savings plan
Balance, beginning of year ....................................................... $193 $ — $ —
Preferred stock assumed atmerger ................................................ — 219 —
Redemptions during year ........................................................ (40 )(26 ) —
Balance, end of year ............................................................ 153 193 —
Guaranteed obligation—stock ownership plan
Balance, beginning ofyear ....................................................... (5 )— —
Obligations assumed at merger ................................................... — (15 ) —
Principal payments............................................................. 5 10 —
Balance, end of year ............................................................ — (5 ) —
Total preferred shareholders’ equity. ........................................... 153 188 —
Common stock and additional paid-in capital
Balance, beginning of year ....................................................... 17,414 8,715 8,628
Shares issued pursu ant to maturity of equity unit forward contracts ....................... 442 — —
Net shares issued under employee stock-based compensation plans ....................... 279 204 79
Shares issued formerger......................................................... — 8,608 —
Adjustment for treasury stock cancelled and retired at merger ........................... — (91 ) —
Other changes................................................................. 44 (22 ) 8
Balance, end of year ............................................................ 18,179 17,414 8,715
Retained earnings
Balance, beginning of year ....................................................... 2,744 2,290 880
Net income ................................................................... 1,622 955 1,696
Dividends .................................................................... (628 )(529 ) (286)
Minority interest andother....................................................... 12 28 —
Balance, end of year ............................................................ 3,750 2,744 2,290
Accumulated other changes in equity fromnonowner sources, net of tax
Balance, beginning of year ....................................................... 952 1,086 657
Change in net unrealized gain (loss) oninvestment securities. ........................... (541 )(192 ) 328
Change in minimum pensionliability adjustment..................................... (8 )— 62
Netchange in unrealized foreign currencytranslation and other changes. .................. (52 )58 39
Balance, end of year ............................................................ 351 952 1,086
Treasury stock (at cost)
Balance, beginning of year ....................................................... (14 )(74 ) (5)
Net shares issued under employee stock-based compensation plans ....................... (33 )(31 ) (29)
Treasury stock cancelled and retired at merger ....................................... — 91 —
Treasury stock acquired......................................................... — — (40)
Balance, end of year ............................................................ (47 )(14 ) (74)
Unearned compensation
Balance, beginning of year ....................................................... (83 )(30 ) (23)
Netissuanceof restricted stockunder employee stock-based compensation plans ............ (71 )(64 ) (32)
Equity-based award amortization. ................................................. 71 54 25
Unvested equity-based awards assumed in merger .................................... — (43 ) —
Balance, end of year ............................................................ (83 )(83 ) (30)
Totalcommon shareholders’ equity............................................ 22,150 21,013 11,987
Total shareholders’ equity.................................................... $ 2 2,303 $ 2 1,201 $ 1 1,987
Common shares outstanding
Balance, beginning of year ....................................................... 670.3 435.8 435.1
Common stockissued pursuant to maturity of equity unit forward contracts ................ 15.2 — —
Net shares issued under employee stock-based compensation plans ....................... 7.9 5.2 1.8
Common stock assumed atmerger................................................. — 229.3 —
Treasury stock acquired......................................................... — — (1.1)
Balance, end of year ............................................................ 693.4 670.3 435.8
Summary of changes in equityfrom nonowner sources
Net income ................................................................... $1,622 $955 $1,696
Other changes in equity from nonowner sources, net of tax ............................. (601 )(134 ) 429
Totalchanges inequity from nonowner sources...................................... $1,021 $821 $2,125