Travelers 2010 Annual Report Download - page 274

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, 2010 2009 2008
Cash flows from operating activities
Net income .............................................. $ 3,216 $ 3,622 $ 2,924
Adjustments to reconcile net income to net cash provided by operating
activities:
Equity in net income of subsidiaries .......................... (3,497) (3,683) (3,182)
Dividends received from consolidated subsidiaries ................ 6,676 3,497 3,361
Capital repaid from subsidiaries ............................. 19 20 40
Deferred federal income tax (benefit) expense ................... (46) 100 169
Change in income taxes payable ............................. 63 22 63
Other ................................................ 411 (301) (273)
Net cash provided by operating activities ....................... 6,842 3,277 3,102
Cash flows from investing activities
Net purchases of short-term securities .......................... (1,723) (21) (666)
Other investments, net ...................................... 99 183 70
Net cash provided by (used in) investing activities ................ (1,624) 162 (596)
Cash flows from financing activities
Issuance of debt .......................................... 1,234 494 496
Payment of debt .......................................... (1,156) (141) (149)
Dividends paid to shareholders ................................ (673) (693) (715)
Treasury stock acquired—share repurchase authorization ............. (4,998) (3,259) (2,167)
Treasury stock acquired—net employee share-based compensation ...... (40) (29) (29)
Issuance of common stock-employee share options ................. 408 180 89
Other .................................................. 10 10 (45)
Net cash used in financing activities .......................... (5,215) (3,438) (2,520)
Net increase (decrease) in cash ............................... 31 (14)
Cash at beginning of year ................................... 1—14
Cash at end of year ........................................ $4$1$—
Supplemental disclosure of cash flow information
Cash received during the year for taxes .......................... $ 116 $ 225 $ 229
Cash paid during the year for interest ........................... $ 324 $ 312 $ 295
The condensed financial statements should be read in conjunction with the notes
to the condensed financial information of the registrant, as well as the
consolidated financial statements and notes thereto.
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