Progressive 2011 Annual Report Download - page 30

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31
Consolidated Statements of Cash Flows
(millions)
For the years ended December 31, 2011 2010 2009
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 1,015.5 $ 1,068.3 $ 1,057.5
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 88.5 83.1 87.3
Amortization of fixed-income securities 233.0 229.2 230.8
Amortization of stock-based compensation 50.5 45.9 40.3
Net realized (gains) losses on securities (102.6) (96.1) (27.1)
Net (gains) losses on disposition of property and equipment 8.7 2.3 13.3
Net (gains) losses on extinguishment of debt .1 (6.4) 0
Changes in:
Premiums receivable (191.4) (283.6) (46.2)
einsurance recoverables (76.5) (176.7) (276.3)
Prepaid reinsurance premiums 18.3 (18.8) (6.9)
Deferred acquisition costs (16.4) (15.0) 11.8
Income taxes 28.4 48.1 29.7
Unearned premiums 225.6 180.8 (3.0)
Loss and loss adjustment expense reserves 174.8 418.0 475.6
Accounts payable, accrued expenses, and other liabilities 35.5 210.2 (71.8)
Other, net 5.9 (10.0) (28.2)
Net cash provided by operating activities 1,497.9 1,679.3 1,486.8
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases:
Fixed maturities (6,032.4) (4,491.7) (10,046.3)
Equity securities (582.0) (511.4) (624.2)
Sales:
Fixed maturities 4,442.6 3,055.8 7,950.0
Equity securities 423.5 241.9 919.4
Maturities, paydowns, calls, and other:
Fixed maturities 1,540.9 1,341.1 842.5
Equity securities 0 0 15.7
Net sales (purchases) of short-term investments – other (461.0) (11.5) 75.6
Net unsettled security transactions (.6) (54.0) (246.5)
Purchases of property and equipment (78.9) (64.7) (66.6)
Sales of property and equipment 3.0 8.0 1.8
Net cash used in investing activities (744.9) (486.5) (1,178.6)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from exercise of stock options 22.4 27.2 18.8
Tax benefit from exercise/vesting of stock-based compensation 6.4 14.0 9.7
Proceeds from debt issuance 491.9 0 0
eacquistion of debt (15.0) (214.3) 0
Dividends paid to shareholders (263.6) (763.7) 0
Acquisition of treasury shares (997.8) (258.6) (180.6)
Net cash used in financing activities (755.7) (1,195.4) (152.1)
Effect of exchange rate changes on cash (.5) .8 1.7
Increase (decrease) in cash (3.2) (1.8) 157.8
Cash, Beginning of year 158.9 160.7 2.9
Cash, End of year $ 155.7 $ 158.9 $ 160.7
See Notes to the complete Consolidated Financial Statements included in Progressive’s 2011 Annual Report to Shareholders,
which is attached as an Appendix to Progressive’s 2012 Proxy Statement.
The Progressive Corporation and Subsidiaries