Travelers 2012 Annual Report Download - page 175

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(in millions)
For the year ended December 31, 2012 2011 2010
Cash flows from operating activities
Net income ...................................................... $ 2,473 $ 1,426 $ 3,216
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized investment gains ........................................ (51) (55) (264)
Depreciation and amortization ....................................... 827 802 812
Deferred federal income tax expense ................................... 223 63 178
Amortization of deferred acquisition costs ................................ 3,910 3,876 3,802
Equity in income from other investments ................................. (342) (281) (283)
Premiums receivable .............................................. (138) (237) (29)
Reinsurance recoverables ........................................... 453 809 1,303
Deferred acquisition costs .......................................... (3,914) (3,881) (3,826)
Claims and claim adjustment expense reserves ............................. (540) (154) (1,971)
Unearned premium reserves ......................................... 123 188 63
Other ....................................................... 206 (387) 53
Net cash provided by operating activities ............................... 3,230 2,169 3,054
Cash flows from investing activities
Proceeds from maturities of fixed maturities .................................. 8,369 7,404 5,896
Proceeds from sales of investments:
Fixed maturities .................................................. 1,087 1,161 3,713
Equity securities .................................................. 37 135 201
Real estate investments ............................................. 53 110
Other investments ................................................. 835 594 717
Purchases of investments:
Fixed maturities .................................................. (10,447) (8,704) (6,785)
Equity securities .................................................. (48) (131) (61)
Real estate investments ............................................. (95) (66) (21)
Other investments ................................................. (534) (889) (514)
Net sales (purchases) of short-term securities ................................. 117 2,018 (699)
Securities transactions in course of settlement ................................. (23) — (30)
Other .......................................................... (323) (371) (318)
Net cash provided by (used in) investing activities ......................... (972) 1,152 2,109
Cash flows from financing activities
Payment of debt ................................................... (258) (8) (1,160)
Issuance of debt ................................................... —— 1,234
Dividends paid to shareholders .......................................... (694) (665) (673)
Issuance of common stock—employee share options ............................. 295 314 408
Treasury stock acquired—share repurchase authorization .......................... (1,474) (2,919) (4,998)
Treasury stock acquired—net employee share-based compensation .................... (53) (46) (40)
Excess tax benefits from share-based payment arrangements ........................ 38 18 8
Net cash used in financing activities .................................. (2,146) (3,306) (5,221)
Effect of exchange rate changes on cash .................................... 4(1) 3
Net increase (decrease) in cash .......................................... 116 14 (55)
Cash at beginning of year ............................................. 214 200 255
Cash at end of year ................................................. $ 330 $ 214 $ 200
Supplemental disclosure of cash flow information
Income taxes paid .................................................. $ 188 $ 218 $ 784
Interest paid ...................................................... $ 375 $ 382 $ 397
The accompanying notes are an integral part of the consolidated financial statements.
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