Travelers 2005 Annual Report Download - page 243

The condensed financial statements should be read in conjunction with the
consolidated financial statements and notes thereto.
231
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,* 2005 2004 2003
Cash flows from operating activities
Net income............................................................. $ 1,622 $ 955 $ 1,696
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in net income of subsidiaries....................................... (2,215 )(1,027 ) (1,761)
Loss from discontinued operations, net of tax............................... 477 — —
Dividends received from consolidated subsidiaries .......................... 945 1,880 761
Capital contributed to subsidiaries ........................................ (890 )(940 ) (1,445)
Deferred federal income tax expense...................................... 549 259 67
Change in income taxes payable .......................................... (234 )(389 ) (36)
Recoveries from former affiliate. ......................................... — — 361
Net transfer ofpension asset and post-retirement liability.................... — (247 ) —
Other ................................................................ 7 (61 ) 31
Net cash provided by (used in) operating activities .......................... 261
430 (326)
Cash flows from investing activities
Net purchases of short-term securities ....................................... (982 )(87 ) (180)
Other investments, net .................................................... (820 )20 —
Net proceeds from the sale of discontinued operations ......................... 1,994 — —
Net cash provided by (used in) investing activities........................... 192
(67 ) (180)
Cash flows from financing activities
Issuance of debt......................................................... 400
302 1,382
Payment of debt......................................................... (811 )(173 ) (550)
Issuance of common stock-maturity of equity unit forward contracts ............. 442
— —
Dividends toshareholders ................................................. (628 )(561 ) (282)
Treasury stock acquired—net employee stock-based compensation.............. (33 )(1 ) (18)
Treasury stock purchased ................................................. — — (40)
Issuance of common stock-employee stock options............................ 164 68 40
Payment of dividend on subsidiary’s preferredstock ........................... — — (5)
Transfer of employee benefit obligations to former affiliates .................... — — (22)
Other .................................................................. (3 )19 —
Net cash provided by (used in) financing activities .......................... (469 )(346 ) 505
Net increase(decrease) in cash. ............................................ (16 )17 (1)
Cash at beginning of period. ............................................... 17 — 2
Cash at end of period..................................................... $ 1 $ 17 $ 1
Supplemental disclosure of cash flow information
Cashreceived during the year for taxes ...................................... $ 310 $ 219 $ 85
Cash paid during the year for interest ....................................... $ 194 $ 142 $ 82
*Data for 2005 represents results of The St. Paul Travelers Companies, Inc. (parent company only) for the year
ended December 31, 2005. 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 2003 represents historical data for Travelers Property Casualty Corp. (parent company only) for the
twelve months ended December 31, 2003.