Travelers 2014 Annual Report Download - page 129

Table of Contents
acquisitions and related financings), market conditions and other factors. The following table summarizes repurchase activity in 2014 and remaining
repurchase capacity at December 31, 2014.
From the inception of the first authorization on May 2, 2006 through December 31, 2014, the Company has repurchased a cumulative total of
425.9 million shares for a total cost of $24.52 billion, or an average of $57.56 per share.
In 2014, 2013 and 2012, the Company acquired 0.7 million, 0.8 million and 0.9 million shares, respectively, of common stock from employees as
treasury stock primarily to cover payroll withholding taxes related to the vesting of restricted stock awards and exercises of stock options.
2014 Stock Incentive Plan. In February 2014, the Company's board of directors approved The Travelers Companies, Inc. 2014 Stock
Incentive Plan (the 2014 Incentive Plan) to replace, effective with shareholder approval, the Amended and Restated 2004 Stock Incentive Plan (the
2004 Incentive Plan), which was scheduled to expire in July 2014. At the Company's 2014 Annual Meeting of Shareholders on May 27, 2014, the
shareholders approved the 2014 Incentive Plan. Accordingly, the 2014 Incentive Plan became effective on that date, and no further awards will be
made under the 2004 Incentive Plan. The 2014 Incentive plan has substantially the same terms, other than the number of shares available, as the
2004 Incentive Plan and is effective through February 5, 2024. The number of shares initially available for issuance under the 2014 Incentive Plan
was 10,000,000 shares of common stock. Shares of common stock subject to awards granted under the 2014 Incentive Plan or the prior 2004
Incentive Plan that (i) expire unexercised, (ii) are forfeited, terminated or canceled, (iii) are settled in cash or other forms of property, or (iv) otherwise
do not result in the issuance of shares of common stock, will be available for grant under the 2014 Incentive Plan.
Capital Resources
Capital resources reflect the overall financial strength of the Company and its ability to borrow funds at competitive rates and raise new capital
to meet its needs. The following table summarizes the components of the Company's capital structure at December 31, 2014 and 2013.
128
Quarterly Period Ending
(in millions, except per share amounts)
Number of
shares
purchased
Cost of shares
repurchased
Average price paid
per share
Remaining capacity
under share repurchase
authorization
March 31, 2014
7.8
$
650
$
82.97
$
4,109
June 30, 2014
9.5
875
92.67
3,234
September 30, 2014
8.1
750
92.47
2,484
December 31, 2014
9.7
1,000
102.82
1,484
Total
35.1
$
3,275
93.27
1,484
(at December 31, in millions)
2014
2013
Debt:
Short - term
$
500
$
100
Long - term
5,861
6,261
Net unamortized fair value adjustments and debt issuance costs
(12
)
(15
)
Total debt
6,349
6,346
Shareholders' equity:
Common stock and retained earnings, less treasury stock
23,956
23,986
Accumulated other comprehensive income
880
810
Total shareholders' equity
24,836
24,796
Total capitalization
$
31,185
$
31,142