Travelers 2011 Annual Report Download - page 174

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(in millions)
For the year ended December 31, 2011 2010 2009
Cash flows from operating activities
Net income ....................................................... $ 1,426 $ 3,216 $ 3,622
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized investment gains ......................................... (55) (264) (17)
Depreciation and amortization ........................................ 802 812 797
Deferred federal income tax expense .................................... 63 178 213
Amortization of deferred acquisition costs ................................. 3,876 3,802 3,813
Equity in (income) loss from other investments .............................. (281) (283) 126
Premiums receivable ............................................... (237) (29) 364
Reinsurance recoverables ............................................ 807 1,300 1,416
Deferred acquisition costs ........................................... (3,881) (3,826) (3,797)
Claims and claim adjustment expense reserves .............................. (152) (1,968) (1,596)
Unearned premium reserves .......................................... 188 63 (96)
Other ........................................................ (387) 53 (614)
Net cash provided by operating activities ................................ 2,169 3,054 4,231
Cash flows from investing activities
Proceeds from maturities of fixed maturities .................................. 7,404 5,896 5,316
Proceeds from sales of investments:
Fixed maturities ................................................... 1,161 3,713 2,805
Equity securities ................................................... 135 201 65
Real estate ...................................................... 110 —
Other investments ................................................. 594 717 511
Purchases of investments:
Fixed maturities ................................................... (8,704) (6,785) (9,647)
Equity securities ................................................... (131) (61) (24)
Real estate ...................................................... (66) (21) (15)
Other investments ................................................. (889) (514) (349)
Net sales (purchases) of short-term securities .................................. 2,018 (699) 370
Securities transactions in course of settlement ................................. —(30) 395
Other ........................................................... (371) (318) (326)
Net cash provided by (used in) investing activities .......................... 1,152 2,109 (899)
Cash flows from financing activities
Payment of debt .................................................... (8) (1,160) (143)
Issuance of debt .................................................... —1,234 494
Dividends paid to shareholders ........................................... (665) (673) (693)
Issuance of common stock—employee share options ............................. 314 408 180
Treasury stock acquired—share repurchase authorization ........................... (2,919) (4,998) (3,259)
Treasury stock acquired—net employee share-based compensation ..................... (46) (40) (29)
Excess tax benefits from share-based payment arrangements ........................ 18 88
Net cash used in financing activities ................................... (3,306) (5,221) (3,442)
Effect of exchange rate changes on cash ..................................... (1) 315
Net increase (decrease) in cash ........................................... 14 (55) (95)
Cash at beginning of year .............................................. 200 255 350
Cash at end of year .................................................. $ 214 $ 200 $ 255
Supplemental disclosure of cash flow information
Income taxes paid ................................................... $ 218 $ 784 $ 876
Interest paid ...................................................... $ 382 $ 397 $ 385
See notes to consolidated financial statements.
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