Travelers 2005 Annual Report Download - page 163

THE ST. PAUL TRAVELERS COMPANIES, INC.AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
151
3. DISCONTINUED OPERATIONS (Continued)
In 2005, the Company has separately disclosed the operating, investing and financing cash flows
attributable to its discontinued operations(Nuveen Investments), which in prior quarters were reported as
components of cash flows from continuing operations. The consolidated cash flow statement for the year
ended December 31, 2004 has been revised to be consistent with the 2005 presentation.
4. INTANGIBLE ASSETS AND GOODWILL
Intangible Assets
The following presents a summary of the Company’s intangible assets by major asset class as of
December 31, 2005 and 2004:
(At December 31 2005, in millions)
Gross
Carrying
Amount
Accumulated
Amortization Net
Intangibles subject to amortization
Customer-related .............................................. $1,036$403 $633
Marketing-related .............................................. 2017 3
Fair value adjustment on claims and claim adjustmentexpense reserves
and reinsurance recoverables(1)............................... 191 (70 ) 261
Total intangible assets subject to amortization ................... 1,247 350 897
Intangible assets not subject toamortization
Contract-based ................................................ 20— 20
Total intangible assets not subject to amortization ................ 20— 20
Total intangible assets ........................................ $1,267$350 $917
(At December 31 2004, in millions)
Gross
Carrying
Amount
Accumulated
Amortization Net
Intangibles subject to amortization
Customer-related ............................................... $ 1,032$ 2 52 $ 780
Marketing-related ............................................... 20 7 13
Fair value adjustment on claims and claim adjustmentexpense reserves
and reinsurance recoverables(1)................................ 191(58 ) 249
Total intangible assets subject to amortization .................... 1,243201 1,042
Intangible assets not subject toamortization
Contract-based ................................................. 20 — 20
Total intangible assets not subject to amortization ................. 20 — 20
Total intangible assets ......................................... $ 1,263$ 2 01 $1,062
(1) The time value of money and the risk margin (cost of capital) components of the intangible asset
runoff at different rates, and as such, the amount recognized in income may be a net benefit insome
periods and anet expense in other periods. See note 2 for further information on the fair value
adjustment on claims and claim adjustment expense reserves and reinsurance recoverables.