Progressive 2013 Annual Report Download - page 5

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The Progressive Corporation and Subsidiaries
Consolidated Statements of Cash Flows
For the years ended December 31,
(millions) 2013 2012 2011
Cash Flows From Operating Activities
Net income $ 1,165.4 $ 902.3 $ 1,015.5
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation 101.3 94.4 88.5
Amortization of fixed-income securities 134.0 186.7 233.0
Amortization of equity-based compensation 64.9 63.4 50.5
Net realized (gains) losses on securities (318.4) (306.8) (102.6)
Net (gains) losses on disposition of property and equipment 5.6 7.1 8.7
(Gains) losses on extinguishment of debt 4.3 1.8 .1
Changes in:
Premiums receivable (127.4) (253.8) (191.4)
Reinsurance recoverables (189.2) (83.0) (76.5)
Prepaid reinsurance premiums (8.6) 3.5 18.3
Deferred acquisition costs (13.1) (.9) (16.4)
Income taxes 57.8 19.8 28.4
Unearned premiums 244.8 351.1 225.6
Loss and loss adjustment expense reserves 641.6 592.6 174.8
Accounts payable, accrued expenses, and other liabilities 165.0 123.6 35.5
Other, net (28.1) (10.4) 5.9
Net cash provided by operating activities 1,899.9 1,691.4 1,497.9
Cash Flows From Investing Activities
Purchases:
Fixed maturities (7,100.6) (5,199.2) (6,032.4)
Equity securities (322.2) (463.1) (582.0)
Sales:
Fixed maturities 3,083.9 3,705.6 4,442.6
Equity securities 369.2 793.0 423.5
Maturities, paydowns, calls, and other:
Fixed maturities 1,859.6 1,488.9 1,540.9
Equity securities 21.5 16.0 0
Net sales (purchases) of short-term investments 716.6 (438.2) (461.0)
Net unsettled security transactions 152.2 (44.0) (.6)
Purchases of property and equipment (140.4) (127.7) (78.9)
Sales of property and equipment 3.7 3.8 3.0
Net cash used in investing activities (1,356.5) (264.9) (744.9)
Cash Flows From Financing Activities
Proceeds from exercise of stock options 0 .5 22.4
Tax benefit from exercise/vesting of equity-based compensation 10.3 5.8 6.4
Net proceeds from debt issuance 0 0 491.9
Payment of debt (150.0) (350.0) 0
Reacquisition of debt (58.1) (32.5) (15.0)
Dividends paid to shareholders (175.6) (853.7) (263.6)
Acquisition of treasury shares (273.4) (174.2) (997.8)
Net cash used in financing activities (646.8) (1,404.1) (755.7)
Effect of exchange rate changes on cash (.6) 1.0 (.5)
Increase (decrease) in cash (104.0) 23.4 (3.2)
Cash, Beginning of year 179.1 155.7 158.9
Cash, End of year $ 75.1 $ 179.1 $ 155.7
See notes to consolidated financial statements.
App.-A-5