Travelers 2007 Annual Report Download - page 265

SCHEDULE II
THE TRAVELERS COMPANIES, INC.
(Parent Company Only)
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
(in millions)
CONDENSED STATEMENT OF CASH FLOWS
For the year ended December 31, 2007 2006 2005
Cash flows from operating activities
Net income .............................................. $ 4,601 $ 4,208 $ 1,622
Adjustments to reconcile net income to net cash provided by operating
activities:
Equity in net income of subsidiaries .......................... (4,757) (4,279) (2,215)
Loss from discontinued operations, net of tax ................... —— 477
Dividends received from consolidated subsidiaries ................ 2,727 1,155 945
Capital repaid from (contributed to) subsidiaries ................. (320) 8 (890)
Deferred federal income tax expense .......................... 2158 549
Change in income taxes payable ............................. 25 (80) (234)
Gain on redemption of subordinated debentures ................. (7) (42) —
Other ................................................ 26 158 7
Net cash provided by operating activities ....................... 2,297 1,286 261
Cash flows from investing activities
Net sales (purchases) of short-term securities ..................... (198) 132 (982)
Other investments, net ...................................... 25 22 (820)
Net cash provided by (used in) investing activities ................ (173) 154 (1,802)
Cash flows from financing activities
Issuance of debt .......................................... 2,461 786 400
Payment of debt .......................................... (1,096) (652) (811)
Dividends paid to shareholders ................................ (742) (702) (628)
Issuance of common stock-maturity of equity unit forward contracts ..... —— 442
Treasury stock acquired—share repurchase program ................ (2,920) (1,103) —
Treasury stock acquired—net employee share-based compensation ...... (39) (17) (33)
Issuance of common stock-employee share options ................. 218 216 164
Other .................................................. 435 (3)
Net cash used in financing activities .......................... (2,114) (1,437) (469)
Net proceeds from the sale of discontinued operations .............. —— 1,994
Net increase (decrease) in cash ............................... 10 3 (16)
Cash at beginning of period .................................. 4117
Cash at end of period ...................................... $14$4$1
Supplemental disclosure of cash flow information
Cash received during the year for taxes .......................... $ 166 $ 164 $ 310
Cash paid during the year for interest ........................... $ 248 $ 220 $ 194
The condensed financial statements should be read in conjunction with the consolidated financial
statements and notes thereto.
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