Travelers 2008 Annual Report Download - page 229

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
9. 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, 2005 ................ $ 327 $ (14) $ 38 $ 351
Net change in unrealized gains on investment
securities, net of tax expense 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 expense 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 expense of $30 ...... — — 101 101
Current period change .................. 167 (50) 101 218
Balance, December 31, 2007 ................ 620 (144) 194 670
Net change in unrealized gains on investment
securities, net of tax benefit of $(584) ........ (1,056) — — (1,056)
Less: Reclassification adjustment for net realized
gains included in net income, net of tax expense
of $157 ............................. 292 — — 292
Net change in benefit plan assets and obligations
recognized in equity, net of tax benefit of $(212) .— (405) — (405)
Change in other, net of tax benefit of $(47) ..... — — (401) (401)
Current period change .................. (764) (405) (401) (1,570)
Balance, December 31, 2008 ................ $ (144) $(549) $(207) $ (900)
(1) Activity in 2006 represented the adjustment to initially apply the provisions of FAS 158. Activity in 2008
and 2007 represented net changes in assets and obligations related to the Company’s employee benefit
plans recognized in equity from nonowner sources.
(2) Includes foreign currency translation adjustments and hedging activities. Activity in 2008 primarily
represented foreign currency translation adjustments.
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