Travelers 2010 Annual Report Download - page 167

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
(in millions)
For the year ended December 31, 2010 2009 2008
Convertible preferred stock—savings plan
Balance, beginning of year .......................................... $79$ 89 $ 112
Redemptions during year ........................................... (11) (10) (23)
Balance, end of year .............................................. 68 79 89
Common stock
Balance, beginning of year .......................................... 19,593 19,242 18,990
Employee share-based compensation ................................... 420 210 114
Compensation amortization under share-based plans and other changes ............ 149 141 138
Balance, end of year .............................................. 20,162 19,593 19,242
Retained earnings
Balance, beginning of year .......................................... 16,315 13,314 11,110
Cumulative effect of adoption of updated accounting guidance at April 1, 2009 ....... —71 —
Net income .................................................... 3,216 3,622 2,924
Dividends ..................................................... (677) (696) (715)
Other ....................................................... (7) 4(5)
Balance, end of year .............................................. 18,847 16,315 13,314
Accumulated other changes in equity from nonowner sources, net of tax
Balance, beginning of year .......................................... 1,219 (900) 670
Cumulative effect of adoption of updated accounting guidance at April 1, 2009 ....... —(71) —
Change in net unrealized gain (loss) on investment securities:
Having no credit losses recognized in the consolidated statement of income ........ (83) 1,945 (764)
Having credit losses recognized in the consolidated statement of income .......... 80 131 —
Net change in benefit plan assets and obligations recognized in equity ............. 27 (88) (405)
Net change in unrealized foreign currency translation and other changes ........... 12 202 (401)
Balance, end of year .............................................. 1,255 1,219 (900)
Treasury stock (at cost)
Balance, beginning of year .......................................... (9,791) (6,426) (4,266)
Treasury shares acquired—share repurchase authorization ..................... (5,000) (3,300) (2,122)
Net shares acquired related to employee share-based compensation plans ........... (66) (65) (38)
Balance, end of year .............................................. (14,857) (9,791) (6,426)
Total common shareholders’ equity ................................... 25,407 27,336 25,230
Total shareholders’ equity ......................................... $ 25,475 $27,415 $25,319
Common shares outstanding
Balance, beginning of year .......................................... 520.3 585.1 627.8
Treasury shares acquired—share repurchase authorization ..................... (95.7) (69.4) (45.0)
Net shares issued under employee share-based compensation plans ............... 10.0 4.6 2.3
Balance, end of year .............................................. 434.6 520.3 585.1
Summary of changes in equity from nonowner sources
Net income .................................................... $ 3,216 $ 3,622 $ 2,924
Other changes in equity from nonowner sources, net of tax .................... 36 2,190 (1,570)
Total changes in equity from nonowner sources ............................ $ 3,252 $ 5,812 $ 1,354
See notes to consolidated financial statements.
155