Progressive 2005 Annual Report Download - page 30

For the years ended December 31, 2005 2004 2003
RETAINED EARNINGS
Balance, Beginning of year $ 3,812.9 $ 3,729.8 $2,796.0
Net income 1,393.9 $ 1,393.9 1,648.7 $1,648.7 1,255.4 $1,255.4
Cash dividends on Common Shares ($.12,
$.11 and $.10 per share) (23.7) (23.3) (21.7)
Treasury shares purchased1(457.0) (1,542.4) (297.5)
Other, net (.1) .1 (2.4)
Balance, End ofyear $4,726.0 $ 3,812.9 $ 3,729.8
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX
Balance, Beginning of year $ 444.8 $ 425.0 $ 169.3
Changes in:
Net unrealized gains on securities (45.0) 16.9 255.8
Net unrealized gains on forecasted transactions (1.1) (1.0) (1.0)
Foreign currency translation adjustment — 3.9 .9
Other comprehensive income (46.1) (46.1) 19.8 19.8 255.7 255.7
Balance, End of year $ 398.7 $ 444.8 $ 425.0
Comprehensive Income $ 1,347.8 $1,668.5 $1,511.1
COMMON SHARES, $1.00 PAR VALUE
Balance, Beginning of year $ 200.4 $ 216.4 $ 218.0
Stock options exercised 1.6 2.1 2.8
Treasury shares purchased1(5.2) (18.6) (5.0)
Restricted stock issued, net of forfeitures .5 .5 .6
Balance, End of year $ 197.3 $ 200.4 $ 216.4
PAID-IN CAPITAL
Balance, Beginning of year $ 743.3 $ 688.3 $ 584.7
Stock options exercised 42.6 49.6 47.2
Tax benefits from exercise/vesting of
stock-based compensation 41.2 44.3 44.0
Treasury shares purchased1(20.6) (67.5) (14.3)
Restricted stock issued, net of forfeitures 41.7 27.3 26.7
Other — 1.3 —
Balance, End of year $ 848.2 $ 743.3 $ 688.3
UNAMORTIZED RESTRICTED STOCK
Balance, Beginning of year $ (46.0) $ (28.9) $ —
Restricted stock issued, net of forfeitures (42.2) (40.6) (37.3)
Restricted stock market value adjustment (8.2) (.3) (2.6)
Amortization of restricted stock 33.7 23.8 11.0
Balance, End of year $ (62.7) $ (46.0) $ (28.9)
Total Shareholders’ Equity $ 6,107.5 $5,155.4 $5,030.6
1Includes 16.9 million Common Shares purchased pursuant to a “Dutch auction” tender offer in 2004;
these shares were purchased at a price of $88 per share, for a total cost of $1.5 billion.
There are 20.0 million Serial Preferred Shares authorized; no such shares are issued or outstanding.
There are 5.0 million Voting Preference Shares authorized; no such shares have been issued.
See notes to the complete consolidated financial statements included in the Company’s 2005 Annual Report to Shareholders,
which is attached as an Appendix to the Company’s 2006 Proxy Statement.
{Consolidated Statements of Changes in Shareholders’ Equity}
THE PROGRESSIVE CORPORATION AND SUBSIDIARIES
(millions–except per share amounts)
.33
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