Travelers 2006 Annual Report Download - page 159

See notes to consolidated financial statements.
147
THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
(in millions)
For theyear ended December 31, 2006 2005 2004
Convertible preferred stock—savings plan
Balance, beginning of year........................................................ $153
$193 $ —
Preferred stock ass umed at merger ................................................. — — 219
Redemptions during year........................................................ (24 ) (40 ) (26)
Balance, end of year ............................................................ 129 153 193
Guaranteed obligation—stock ownership plan
Balance, beginning of year........................................................ — (5 )—
Obligations assumed at merger.................................................... — — (15)
Principal payments.............................................................. — 5 10
Balance, end of year ............................................................ — — (5)
Total preferred shareholders’ equity .............................................. 129 153 188
Common stock and additional paid-in capital
Balance, beginning of year........................................................ 18,096 17,331 8,685
Net shares issued under employee share-based compensation plans....................... 260 208 140
Compensation amortization under share-based plans and other changes ................... 174 115 32
Shares issuedpursuant to maturity of equity unit forward contracts....................... — 442 —
Shares issuedfor merger......................................................... — — 8,608
Adjustment for treasury shares cancel led and retired at merger.......................... — — (91)
Unvested equity-based awards assumed inmerger..................................... — — (43)
Balance, end of year ............................................................ 18,530 18,096 17,331
Retained earnings
Balance, beginning of year........................................................ 3,750 2,744 2,290
Net income................................................................... 4,208 1,622 955
Dividends declared ............................................................. (701 )(628 )(529)
Minority interestand other ....................................................... (4 )12 28
Balance, end of year ............................................................ 7,253 3,750 2,744
Accumulated other changes in equity from nonowner sources, net of tax
Balance, beginning of year........................................................ 351 952 1,086
Change in netunrealized gain (loss) on investment securities............................ 126 (541 )(192)
Change in minimum pensionliability adjustment ...................................... — (8 )—
Net change in unrealized foreign currency translation and other changes ................... 55 (52) 58
Adjustment to initially apply FAS Statement No. 158,net of tax.......................... (80 ) — —
Balance, end of year ............................................................ 452 351 952
Treasury stock (at cost)
Balance, beginning of year........................................................ (47 ) (14 ) (74)
Treasury shares acquired—share repur chase program .................................. (1,121 )— —
Net shares acquired relatedto employee share-based compensation plans .................. (61 ) (33 ) (31)
Treasury shares cancelled and retired at merger....................................... — — 91
Balance, end of year ............................................................ (1,229 )(47 ) (14)
Total common shareholders’ equity............................................... 25,006 22,150 21,013
Total shareholders’ equity ...................................................... $ 2 5,135 $22,303 $ 21,201
Common shares outstanding
Balance, beginning of year........................................................ 693.4 670.3 435.8
Net shares issued under employee share-based compensation plans....................... 7.7 7.9 5.2
Common sharesissued pursuant to maturity of equity unit forward contracts. ............... — 15.2—
Treasury shares acquired—share repurchase program .................................. (22.8 ) — —
Common sharesassumed at merger ................................................ — — 229.3
Balance, end of year ............................................................ 678.3 693.4 670.3
Summary of changes in equity from nonowner sources
Net income................................................................... $4,208 $1,622 $ 955
Other changes in equity fromnonowner sources, netof tax.............................. 181 (601 )(134)
Total changes in equity from nonowner sources..................................... $4,389 $1,021 $ 821