Travelers 2006 Annual Report Download - page 270

The condensed financial statements should be read in conjunction with the consolidated financial
statements and notes thereto.
258
SCHEDULE II
THE TRAVELERS COMPANIES, INC.
(Parent Company Only)
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
(in millions)
CONDENSED STATEMENT OF CASH FLOWS
For the period ended December 31,*2006 2005 2004
Cash flows from operating activities
Net income ...................................................... $4,208 $1,622 $ 955
Adjustments to reconcile net income to net cash provided by operating
activities:
Equity innet income of subsidiaries............................... (4,279) (2,215 ) (1,027)
Loss from discontinued operations, net of tax ...................... — 477 —
Dividends received fromconsolidated subsidiaries .................. 1,155 945 1,880
Capital repaid from (contributed to) subsidiaries................... 8 (890 ) (940)
Deferred federal income tax expense.............................. 158 549 259
Change in income taxes payable.................................. (80)(234) (389)
Gain on redemption of subordinated debentures.................... (42) — —
Net transfer ofpension asset and post-retirement liability ............ — — (247)
Other......................................................... 158 7 (61)
Net cash provided by operating activities .......................... 1,286 261 430
Cash flows from investing activities
Net sales (purchases) of short-term securities. ........................ 132 (982 ) (87)
Other investments, net............................................ 22 (820 ) 20
Net cash provided by (used in) investing activities .................. 154 (1,802 ) (67)
Cash flows from financing activities
Issuance ofdebt.................................................. 786 400 302
Payment of debt.................................................. (652) (811) (173)
Dividends paid to shareholders ..................................... (702) (628) (561)
Issuance of common stock-maturity of equity unit forward contracts.....— 442 —
Treasury stock acquired—share repurchase program.................. (1,103) — —
Treasury stock acquired—net employee share-based compensation..... (17)(33) (1)
Issuance of commonstock-employeeshare options.................... 216 164 68
Other........................................................... 35 (3 ) 19
Netcash used in financing activities.............................. (1,437) (469) (346)
Net proceeds from the sale of discontinued operations ................—1,994 —
Net increase (decrease) in cash ..................................... 3 (16 ) 17
Cash at beginning of period........................................ 1 17 —
Cash at end of period ............................................. $ 4
$ 1 $ 17
Supplemental disclosure of cash flow information
Cash received during the year for taxes .............................. $ 164 $ 310 $ 219
Cash paid during the year for interest............................... $ 220 $ 194 $ 142
* Data for 2004 represents results of The Travelers Companies, Inc. (parent company only) for the
nine-month period from the merger date of April 1, 2004 through December 31, 2004.