Travelers 2009 Annual Report Download - page 281

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, 2009 2008 2007
Cash flows from operating activities
Net income.............................................. $ 3,622 $ 2,924 $ 4,601
Adjustments to reconcile net income to net cash provided by operating
activities:
Equity in net income of subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . (3,683) (3,182) (4,757)
Dividends received from consolidated subsidiaries . . . . . . . . . . . . . . . . 3,497 3,361 2,727
Capital repaid from (contributed to) subsidiaries . . . . . . . . . . . . . . . . . 20 40 (320)
Deferred federal income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . 100 169 2
Change in income taxes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 63 25
Gain on redemption of subordinated debentures . . . . . . . . . . . . . . . . . ——(7)
Other ................................................ (301) (273) 192
Net cash provided by operating activities ....................... 3,277 3,102 2,463
Cash flows from investing activities
Net purchases of short-term securities . . . . . . . . . . . . . . . . . . . . . . . . . . (21) (666) (198)
Other investments, net...................................... 183 70 25
Net cash provided by (used in) investing activities ................ 162 (596) (173)
Cash flows from financing activities
Issuance of debt .......................................... 494 496 2,461
Payment of debt .......................................... (141) (149) (1,096)
Dividends paid to shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (693) (715) (742)
Treasury stock acquired—share repurchase authorization . . . . . . . . . . . . . (3,259) (2,167) (2,920)
Treasury stock acquired—net employee share-based compensation . . . . . . (29) (29) (39)
Issuance of common stock-employee share options . . . . . . . . . . . . . . . . . 180 89 218
Other.................................................. 10 (45) (162)
Net cash used in financing activities .......................... (3,438) (2,520) (2,280)
Net increase (decrease) in cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1(14) 10
Cash at beginning of period.................................. —14 4
Cash at end of period ...................................... $1$—$14
Supplemental disclosure of cash flow information
Cash received during the year for taxes . . . . . . . . . . . . . . . . . . . . . . . . . . $ 225 $ 229 $ 166
Cash paid during the year for interest . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 312 $ 295 $ 248
The condensed financial statements should be read in conjunction with the consolidated financial
statements and notes thereto.
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