Travelers 2006 Annual Report Download - page 244

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
232
17. RESTRUCTURING ACTIVITIES (Continued)
Balance at Balance at
December 31, 2006 December 31,
(in millions)2005 Payments Adjustments2006
Restructuring costs included in the allocation of the
purchase price:
Employee terminationand relocation costs............ $7 $(7) $— $—
Costs to exit leases .................................4 (2)— 2
Total included in the allocation of purchase price .. 11 (9)— 2
Employee termination costs included in general and
administrative expenses:
Business Insurance...............................7 (6)— 1
Personal Insurance. ..............................1 (1)— —
Total included in general and administrative
expenses. ...................................8 (7)— 1
Totalrestructuring costs........................$ 1 9$ ( 16)$ — $ 3
18. NONCASH INVESTING AND FINANCING ACTIVITIES
There were no significant noncash financingor investing activities during the year ended
December 31, 2006.
In 2005, the Company remarketed senior notes that were originally issued in 2002, resetting the
interest rate from 5.25% to 5.01%. There were no other significant noncash financing or investing activities
during the year ended December 31, 2005.
There were no significant noncash financingor investing activities during the year ended
December 31, 2004, other than the acquisition of SPC which resulted in net assets assumed of $8.76 billion
(at fair value).
19. MERGER
On April 1, 2004, TPC merged with a subsidiary of SPC, as a result of which TPC became a wholly-
owned subsidiary of The St. Paul Travelers Companies, Inc. For accounting purposes, this transaction was
accounted for as a reverse acquisition with TPC treated as the accounting acquirer. Accordingly, this
transaction was accounted for as a purchase business combination, using TPC’s historical financial
information and applying fair value estimates to the acquired assets, liabilities and commitments of SPC as
of April 1,2004. Effective February 26, 2007, the Company changed its name to The Travelers
Companies, Inc.
On an unaudited pro forma basis for the year ended December 31, 2004, the combined revenues of
TPC and SPC totaled $25.20 billion, net income totaled $1.08 billion, and basic and diluted net income per
share was $1.61 and $1.58, respectively. This combinedinformation reflects pro forma purchase accounting
adjustments as if the acquisition had been consummatedas of January 1, 2004. This pro forma information
is not necessarily indicative of what would have occurred had the acquisition and related transactions been
made on that date, or of future results of the Company.