Travelers 2008 Annual Report Download - page 275

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, 2008 2007 2006
Cash flows from operating activities
Net income .............................................. $ 2,924 $ 4,601 $ 4,208
Adjustments to reconcile net income to net cash provided by operating
activities:
Equity in net income of subsidiaries .......................... (3,182) (4,757) (4,279)
Dividends received from consolidated subsidiaries ................ 3,361 2,727 1,155
Capital repaid from (contributed to) subsidiaries ................. 40 (320) 8
Deferred federal income tax expense .......................... 169 2 158
Change in income taxes payable ............................. 63 25 (80)
Gain on redemption of subordinated debentures ................. —(7) (42)
Other ................................................ (302) 26 158
Net cash provided by operating activities ....................... 3,073 2,297 1,286
Cash flows from investing activities
Net sales (purchases) of short-term securities ..................... (666) (198) 132
Other investments, net ...................................... 70 25 22
Net cash provided by (used in) investing activities ................ (596) (173) 154
Cash flows from financing activities
Issuance of debt .......................................... 496 2,461 786
Payment of debt .......................................... (149) (1,096) (652)
Dividends paid to shareholders ................................ (715) (742) (702)
Treasury stock acquired—share repurchase authorization ............. (2,167) (2,920) (1,103)
Treasury stock acquired—net employee share-based compensation ...... (29) (39) (17)
Issuance of common stock-employee share options ................. 89 218 216
Other .................................................. (16) 435
Net cash used in financing activities .......................... (2,491) (2,114) (1,437)
Net increase (decrease) in cash ............................... (14) 10 3
Cash at beginning of period .................................. 14 41
Cash at end of period ...................................... $—$14$ 4
Supplemental disclosure of cash flow information
Cash received during the year for taxes .......................... $ 229 $ 166 $ 164
Cash paid during the year for interest ........................... $ 295 $ 248 $ 220
The condensed financial statements should be read in conjunction with the consolidated financial
statements and notes thereto.
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