Travelers 2014 Annual Report Download - page 170

Table of Contents
THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(in millions)
The accompanying notes are an integral part of the consolidated financial statements.
169
For the year ended December 31,
2014
2013
2012
Cash flows from operating activities
Net income
$
3,692
$
3,673
$
2,473
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized investment gains
(79
)
(166
)
(51
)
Depreciation and amortization
864
867
827
Deferred federal income tax expense
121
167
223
Amortization of deferred acquisition costs
3,882
3,821
3,910
Equity in income from other investments
(486
)
(357
)
(342
)
Premiums receivable
(207
)
54
(138
)
Reinsurance recoverables
400
1,284
453
Deferred acquisition costs
(3,926
)
(3,759
)
(3,914
)
Claims and claim adjustment expense reserves
(704
)
(2,057
)
(540
)
Unearned premium reserves
73
27
123
Other
63
262
206
Net cash provided by operating activities
3,693
3,816
3,230
Cash flows from investing activities
Proceeds from maturities of fixed maturities
10,894
7,904
8,369
Proceeds from sales of investments:
Fixed maturities
1,049
1,635
1,087
Equity securities
158
86
37
Real estate investments
15
18
53
Other investments
855
762
835
Purchases of investments:
Fixed maturities
(11,325
)
(9,467
)
(10,447
)
Equity securities
(52
)
(57
)
(48
)
Real estate investments
(48
)
(107
)
(95
)
Other investments
(554
)
(446
)
(534
)
Net sales (purchases) of short - term securities
(498
)
111
117
Securities transactions in course of settlement
82
21
(23
)
Acquisition, net of cash acquired
(12
)
(997
)
—
Other
(358
)
(373
)
(323
)
Net cash provided by (used in) investing activities
206
(910
)
(972
)
Cash flows from financing activities
Treasury stock acquired — share repurchase authorization
(3,275
)
(2,400
)
(1,474
)
Treasury stock acquired — net employee share - based compensation
(57
)
(61
)
(53
)
Dividends paid to shareholders
(729
)
(729
)
(694
)
Issuance of common stock —employee share options
195
206
295
Payment of debt
—
( 500
)
(258
)
Issuance of debt
—
494
—
Excess tax benefits from share - based payment arrangements
57
51
38
Net cash used in financing activities
(3,809
)
(2,939
)
(2,146
)
Effect of exchange rate changes on cash
(10
)
(3
)
4
Net increase (decrease) in cash
80
(36
)
116
Cash at beginning of year
294
330
214
Cash at end of year
$
374
$
294
$
330
Supplemental disclosure of cash flow information
Income taxes paid
$
1,147
$
1,057
$
188
Interest paid
$
365
$
355
$
375