Travelers 2007 Annual Report Download - page 214

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
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 Equity from Nonowner Sources
were as follows:
Net Benefit Plan Accumulated
Net Unrealized Assets and Other Changes
Gains (Losses) Obligations in Equity from
on Investment Recognized in Nonowner
(at and for the year ended December 31, in millions) Securities Equity(1) Other(2) Sources
Balance, December 31, 2004 ............... $868 $ (6) $ 90 $952
Net change in unrealized gains on investment
securities, net of tax benefit of $(298) ...... (515) — — (515)
Less: Reclassification adjustment for net
realized gains included in net income, net of
tax benefit of $(13) .................... (26) — — (26)
Change in minimum pension liability
adjustment, net of tax benefit of $(4) ....... — (8) — (8)
Change in other, net of tax of $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 of $81 .............. 146 — — 146
Less: Reclassification adjustment for net
realized gains included in net income, net of
tax benefit of $(11) .................... (20) — — (20)
Adjustment to initially apply FAS 158, net of tax
benefit of $(43) ...................... — (80) — (80)
Change in other, net of tax benefit of $(5) .... — — 55 55
Current period change ................. 126 (80) 55 101
Balance, December 31, 2006 ............... 453 (94) 93 452
Net change in unrealized gains on investment
securities, net of tax of $151 ............. 280 — — 280
Less: Reclassification adjustment for net
realized gains included in net income, net of
tax benefit of $(60) .................... (113) — — (113)
Net change in benefit plan assets and
obligations recognized in equity, net of tax
benefit of $(30) ...................... — (50) — (50)
Change in other, net of tax of $30 .......... — — 101 101
Current period change ................. 167 (50) 101 218
Balance, December 31, 2007 ............... $ 620 $(144) $194 $ 670
(1) Activity in 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 the provisions of FAS 158.
Activity in 2007 represented net changes in benefit plan assets and benefit plan obligations
recognized in equity from nonowner sources.
(2) Includes foreign currency translation adjustments, changes in the value of private equity securities,
and hedging activities.
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