Travelers 2006 Annual Report Download - page 245

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
233
19. MERGER (Continued)
Identification and Valuation of Intangible Assets Subject to Amortization
Intangible assets subject to amortization (excluding the Nuveen Investments’ intangible assets) were
as follows:
(in millions)
Amount
assigned as
of April 1,
2004
Weighted-
average
amortization
period
Major intangible asset class
Customer-related (a) $495 7.8years
Marketing-related 20 2.0years
Fair value adjustment on claims and claim adjustment expense reserves and
reinsurance recoverables (b) 191 30.0 years
Total $706
(a) Primarily includes customer-related insurance intangibles based on rates derived from expected
business retention andprofitability levels.
(b) See note 5 for further discussion of the fair value adjustment.
20. DISCONTINUED OPERATIONS
In 2005, the Company completed the divestiture of its 78% equity interest in Nuveen Investments,
which constituted its Asset Management segment, through a series of transactions. The divestiture resulted
in net pretax cash proceeds of $2.40 billion. In 2005, the Company recorded a pretax gain on disposal of
$345 million ($224 million after-tax), and a net operating loss from discontinued operations of $663
million, consisting primarily of $710 million of tax expense which resulted from the difference between the
tax basis and the GAAP carrying value of the Company’s investment in Nuveen Investments, partially
offset by the Company’s share of Nuveen Investments’ net income for 2005.