Travelers 2006 Annual Report Download - page 212

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
200
8. SHAREHOLDERS’ EQUITY AND DIVIDEND AVAILABILITY (Continued)
Accumulated Other Changes in Equity from Nonowner Sources, Net of Tax
Changes in each component of Accumulated Other Changes in Equityfrom Nonowner Sources were
as follows:
(at and forthe year ended December 31, in millions)
Net Unrealized
Gains (Losses)
on Investment
Securities
Unamortized
Benefit Plan
Costs and
Minimum
Pension
Liability
Adjustment(1) Other(2)
Accumulated
Other Changes
in Equity from
Nonowner
Sources
Balance, December 31, 2003 ...................... $ 1,060 $(6) $32$ 1,086
Net change in unrealized gains on investment
securities, net of tax benefit and minority interest of
$(85)....................................... (168)——(168)
Less: Reclassification adjustment for net realized
gains included in net income, net of tax benefit and
minority interest of $(13) ...................... (24) —— (24)
Change in other, net of taxbenefit of $(4).......... ——58 58
Current period change ...................... (192)—58(134)
Balance, December 31, 2004 ...................... 868 (6) 90 952
Net change in unrealized gains on investment
securities, net of tax benefit and minority interest of
$(298) ...................................... (515)——(515)
Less: Reclassification adjustment for net realized
gains included in net income, net of tax benefit and
minority interest of $(13) ...................... (26) —— (26)
Change in minimum pension liability adjustment, net
of tax benefit of$(4).......................... — (8) — (8)
Change in other, net of taxof $3 .................. ——(52) (52)
Current period change ...................... (541)(8) (52) (601)
Balance, December 31, 2005 ...................... 327 (14) 38 351
Net change in unrealized gains on investment
securities, net of tax and minority
interest of $81................................ 146 — — 146
Less: Reclassification adjustment for net realized
gains included in net income, net of tax benefit of
$(11)....................................... (20) —— (20)
Change in other, net of taxbenefit of $(5) .......... — —55 55
Adjustment to initially apply FAS 158, net of tax
benefit of $(43) .............................. — (80) — (80)
Current period change ...................... 126 (80) 55 101
Balance, December 31, 2006 ...................... $453 $ (94) $ 93 $452
(1) Activity in 2004 and 2005 was related to the Company’s minimum pension liability prior to the
application of FAS 158. Activity in 2006 represented the adjustment to initially apply theprovisions of
FAS 158.
(2) Includes foreign currency translation adjustments, changes in the value of private equity securities,
and hedging activities.