Travelers 2015 Annual Report Download - page 167

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(in millions)
For the year ended December 31, 2015 2014 2013
Cash flows from operating activities
Net income ...................................................... $ 3,439 $ 3,692 $ 3,673
Adjustments to reconcile net income to net cash provided by operating activities
Net realized investment gains ....................................... (3) (79) (166)
Depreciation and amortization ....................................... 818 864 867
Deferred federal income tax expense ................................... 117 121 167
Amortization of deferred acquisition costs ............................... 3,885 3,882 3,821
Equity in income from other investments ................................ (218) (486) (357)
Premiums receivable ............................................. (185) (207) 54
Reinsurance recoverables .......................................... 272 400 1,284
Deferred acquisition costs .......................................... (3,920) (3,926) (3,759)
Claims and claim adjustment expense reserves ............................. (1,075) (704) (2,057)
Unearned premium reserves ........................................ 248 73 27
Other ...................................................... 56 63 262
Net cash provided by operating activities ............................... 3,434 3,693 3,816
Cash flows from investing activities
Proceeds from maturities of fixed maturities ................................. 11,116 10,894 7,904
Proceeds from sales of investments:
Fixed maturities ................................................. 1,950 1,049 1,635
Equity securities ................................................. 59 158 86
Real estate investments ............................................. 31 15 18
Other investments ................................................ 713 855 762
Purchases of investments:
Fixed maturities ................................................. (12,090) (11,325) (9,467)
Equity securities ................................................. (49) (52) (57)
Real estate investments ............................................. (123) (48) (107)
Other investments ................................................ (534) (554) (446)
Net sales (purchases) of short-term securities ................................ (326) (498) 111
Securities transactions in the course of settlement ............................. (113) 82 21
Acquisitions, net of cash acquired ........................................ (13) (12) (997)
Other ......................................................... (304) (358) (373)
Net cash provided by (used in) investing activities ......................... 317 206 (910)
Cash flows from financing activities
Treasury stock acquired—share repurchase authorization ......................... (3,150) (3,275) (2,400)
Treasury stock acquired—net employee share-based compensation ................... (74) (57) (61)
Dividends paid to shareholders ......................................... (739) (729) (729)
Payment of debt ................................................... (400) — (500)
Issuance of debt ................................................... 392 — 494
Issuance of common stock-employee share options ............................. 183 195 206
Excess tax benefits from share-based payment arrangements ....................... 55 57 51
Net cash used in financing activities .................................. (3,733) (3,809) (2,939)
Effect of exchange rate changes on cash ................................... (12) (10) (3)
Net increase (decrease) in cash ......................................... 680 (36)
Cash at beginning of year ............................................. 374 294 330
Cash at end of year ................................................ $ 380 $ 374 $ 294
Supplemental disclosure of cash flow information
Income taxes paid .................................................. $ 1,207 $ 1,147 $ 1,057
Interest paid ..................................................... $ 365 $ 365 $ 355
The accompanying notes are an integral part of the consolidated financial statements.
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