Travelers 2007 Annual Report Download - page 160

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
(in millions)
For the year ended December 31, 2007 2006 2005
Convertible preferred stock—savings plan
Balance, beginning of year ............................................. $ 129 $ 153 $ 193
Redemptions during year .............................................. (17) (24) (40)
Balance, end of year ................................................. 112 129 153
Guaranteed obligation—stock ownership plan
Balance, beginning of year ............................................. ——(5)
Principal payments .................................................. ——5
Balance, end of year ................................................. ———
Total preferred shareholders’ equity ...................................... 112 129 153
Common stock and additional paid-in capital
Balance, beginning of year ............................................. 18,530 18,096 17,331
Employee share-based compensation ....................................... 260 260 208
Conversion of convertible notes .......................................... 36 ——
Compensation amortization under share-based plans and other changes ................. 164 174 115
Maturity of equity unit forward contracts .................................... —— 442
Balance, end of year ................................................. 18,990 18,530 18,096
Retained earnings
Balance, beginning of year ............................................. 7,253 3,750 2,744
Net income ....................................................... 4,601 4,208 1,622
Dividends ........................................................ (742) (701) (628)
Minority interest and other ............................................. (2) (4) 12
Balance, end of year ................................................. 11,110 7,253 3,750
Accumulated other changes in equity from nonowner sources, net of tax
Balance, beginning of year ............................................. 452 351 952
Change in net unrealized gain on investment securities ........................... 167 126 (541)
Net change in benefit plan assets and obligations recognized in equity ................. (50) (80) (8)
Net change in unrealized foreign currency translation and other changes ................ 101 55 (52)
Balance, end of year ................................................. 670 452 351
Treasury stock (at cost)
Balance, beginning of year ............................................. (1,229) (47) (14)
Treasury shares acquired—share repurchase program ............................ (2,947) (1,121) —
Net shares acquired related to employee share-based compensation plans ............... (90) (61) (33)
Balance, end of year ................................................. (4,266) (1,229) (47)
Total common shareholders’ equity ...................................... 26,504 25,006 22,150
Total shareholders’ equity ............................................ $26,616 $25,135 $22,303
Common shares outstanding
Balance, beginning of year ............................................. 678.3 693.4 670.3
Shares acquired—share repurchase program .................................. (56.0) (22.8) —
Net shares issued under employee share-based compensation plans ................... 4.8 7.7 7.9
Shares issued pursuant to conversion of convertible notes ......................... 0.7 ——
Shares issued pursuant to maturity of equity unit forward contracts ................... —— 15.2
Balance, end of year ................................................. 627.8 678.3 693.4
Summary of changes in equity from nonowner sources
Net income ....................................................... $ 4,601 $ 4,208 $ 1,622
Other changes in equity from nonowner sources, net of tax ........................ 218 181 (601)
Total changes in equity from nonowner sources ................................ $ 4,819 $ 4,389 $ 1,021
See notes to consolidated financial statements.
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