Progressive 2009 Annual Report Download - page 26

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34 THE PROGRESSIVE CORPORATION AND SUBSIDIARIES
(millions—except per share amounts)
For the years ended December 31, 2009 2008 2007
Retained Earnings
Balance, Beginning of year $ 2,697.8 $ 2,927.7 $ 4,646.9
Cumulative effect of change in
accounting principle 189.6 ——
Net income (loss) 1,057.5 $ 1,057.5 (70.0) $ (70.0) 1,182.5 $ 1,182.5
Cash dividends declared on common shares
($.1613, $0, and $2.1450 per share) (108.5) — (1,507.6)
Treasury shares purchased (154.5) (157.1) (1,388.4)
Other, net 1.2 (2.8) (5.7)
Balance, End of year $ 3,683.1 $ 2,697.8 $ 2,927.7
Accumulated Other Comprehensive Income (Loss), Net of Tax
Balance, Beginning of year $ (51.9) $ 492.8 $ 604.3
Cumulative effect of change in
accounting principle (189.6) ——
Changes in:
Net unrealized gains (losses) on securities 722.7
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Portion of OTTI losses recognized in other
comprehensive income (loss) (26.1)
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Total net unrealized gains (losses) on securities 696.6 (541.8) (131.8)
Net unrealized gains on forecasted transactions (3.3) (2.9) 20.3
Foreign currency translation adjustment 1.4 ——
Other comprehensive income (loss) 694.7 694.7 (544.7) (544.7) (111.5) (111.5)
Balance, End of year $ 453.2 $ (51.9) $ 492.8
Comprehensive Income (Loss) $ 1,752.2 $ (614.7) $ 1,071.0
Common Shares, $1.00 Par Value
Balance, Beginning of year $ 676.5 $ 680.2 $ 748.0
Stock options exercised 3.5 3.5 3.4
Treasury shares purchased (11.1) (9.9) (72.9)
Restricted stock issued, net of forfeitures 3.7 2.7 1.7
Balance, End of year $ 672.6 $ 676.5 $ 680.2
Paid-in Capital
Balance, Beginning of year $ 892.9 $ 834.8 $ 847.4
Stock options exercised 15.3 23.5 27.4
Tax benefits from exercise/vesting of
stock-based compensation 9.7 11.1 15.5
Treasury shares purchased (15.0) (12.4) (87.1)
Restricted stock issued, net of forfeitures (3.7) (2.7) (1.7)
Amortization of stock-based compensation 39.2 35.1 28.0
Other 1.3 3.5 5.3
Balance, End of year $ 939.7 $ 892.9 $ 834.8
Total Shareholders’ Equity $ 5,748.6 $ 4,215.3 $ 4,935.5
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 Progressive’s 2009 Annual Report to Shareholders, which is attached as an Appendix
to Progressive’s 2010 Proxy Statement.
Consolidated Statements of Changes in Shareholders’ Equity