Travelers 2013 Annual Report Download - page 179

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(in millions)
For the year ended December 31, 2013 2012 2011
Cash flows from operating activities
Net income ...................................................... $ 3,673 $ 2,473 $ 1,426
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized investment gains ........................................ (166) (51) (55)
Depreciation and amortization ....................................... 867 827 802
Deferred federal income tax expense ................................... 167 223 63
Amortization of deferred acquisition costs ................................ 3,821 3,910 3,876
Equity in income from other investments ................................. (357) (342) (281)
Premiums receivable .............................................. 54 (138) (237)
Reinsurance recoverables ........................................... 1,284 453 809
Deferred acquisition costs .......................................... (3,759) (3,914) (3,881)
Claims and claim adjustment expense reserves ............................. (2,057) (540) (154)
Unearned premium reserves ......................................... 27 123 188
Other ....................................................... 262 206 (387)
Net cash provided by operating activities ............................... 3,816 3,230 2,169
Cash flows from investing activities
Proceeds from maturities of fixed maturities .................................. 7,904 8,369 7,404
Proceeds from sales of investments:
Fixed maturities .................................................. 1,635 1,087 1,161
Equity securities .................................................. 86 37 135
Real estate investments ............................................. 18 53 1
Other investments ................................................. 762 835 594
Purchases of investments:
Fixed maturities .................................................. (9,467) (10,447) (8,704)
Equity securities .................................................. (57) (48) (131)
Real estate investments ............................................. (107) (95) (66)
Other investments ................................................. (446) (534) (889)
Net sales of short-term securities ......................................... 111 117 2,018
Securities transactions in course of settlement ................................. 21 (23) —
Acquisition, net of cash acquired ......................................... (997) ——
Other .......................................................... (373) (323) (371)
Net cash provided by (used in) investing activities ......................... (910) (972) 1,152
Cash flows from financing activities
Payment of debt ................................................... (500) (258) (8)
Issuance of debt ................................................... 494 ——
Dividends paid to shareholders .......................................... (729) (694) (665)
Issuance of common stock—employee share options ............................. 206 295 314
Treasury stock acquired—share repurchase authorization .......................... (2,400) (1,474) (2,919)
Treasury stock acquired—net employee share-based compensation .................... (61) (53) (46)
Excess tax benefits from share-based payment arrangements ........................ 51 38 18
Net cash used in financing activities .................................. (2,939) (2,146) (3,306)
Effect of exchange rate changes on cash .................................... (3) 4(1)
Net increase (decrease) in cash .......................................... (36) 116 14
Cash at beginning of year ............................................. 330 214 200
Cash at end of year ................................................. $ 294 $ 330 $ 214
Supplemental disclosure of cash flow information
Income taxes paid .................................................. $ 1,057 $ 188 $ 218
Interest paid ...................................................... $ 355 $ 375 $ 382
The accompanying notes are an integral part of the consolidated financial statements.
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