The Hartford 2013 Annual Report Download - page 143

F-7
For the years ended December 31,
(In millions) 2013 2012 2011
Operating Activities
Net income (loss) 176 $ (38) $ 712
Adjustments to reconcile net income to net cash provided by operating activities
Amortization of deferred policy acquisition costs and present value of future profits 2,701 1,988 2,444
Additions to deferred policy acquisition costs and present value of future profits (1,330) (1,639) (1,696)
Change in reserve for future policy benefits and unpaid losses and loss adjustment expenses and unearned premiums (308) (226) 1,451
Change in reinsurance recoverables (561) (351) (31)
Change in receivables and other assets (409) (257) (211)
Change in payables and accruals 497 874 (491)
Change in accrued and deferred income taxes (745) (386) (82)
Net realized capital (gains) losses (828) 711 24
Net disbursements from investment contracts related to policyholder funds — international variable annuities (9,189) (1,539) (2,332)
Net decrease in equity securities, trading 9,188 1,566 2,321
Depreciation and amortization 189 467 668
Goodwill impairment — — 30
Loss on extinguishment of debt 213 910 —
Reinsurance loss on disposition 1,574 533 —
Other operating activities, net 69 68 (533)
Net cash provided by operating activities 1,237 2,681 2,274
Investing Activities
Proceeds from the sale/maturity/prepayment of:
Fixed maturities, available-for-sale 40,266 42,716 38,260
Fixed maturities, fair value option 322 283 37
Equity securities, available-for-sale 274 295 239
Mortgage loans 468 515 515
Partnerships 368 208 237
Payments for the purchase of:
Fixed maturities, available-for-sale (35,446) (42,578) (37,627)
Fixed maturities, fair value option (150) (182) (664)
Equity securities, available-for-sale (212) (144) (270)
Mortgage loans (718) (1,483) (1,800)
Partnerships (353) (903) (784)
Proceeds from business sold 815 58 278
Derivatives, net (2,208) (2,665) 720
Change in policy loans, net (5) 4 180
Change in short-term investments, net 318 1,400 (346)
Other investing activities, net 6 (81) (157)
Net cash provided by (used for) investing activities 3,745 (2,557) (1,182)
Financing Activities
Deposits and other additions to investment and universal life-type contracts 5,942 10,951 11,531
Withdrawals and other deductions from investment and universal life-type contracts (25,034) (25,543) (21,022)
Net transfers from separate accounts related to investment and universal life-type contracts 16,978 13,196 9,843
Repayments at maturity or settlement of consumer notes (77) (153) (68)
Net increase (decrease) in securities loaned or sold under agreements to repurchase (1,988) 1,988 —
Repurchase of Warrants (33) (300) —
Repayment of long-term and short-term debt (1,338) (2,133) (405)
Proceeds from the issuance of long-term and short-term debt 533 2,123 —
Proceeds from net issuance of shares under incentive and stock compensation plans, excess tax benefit and other 20 14 10
Treasury stock acquired (600) (154) (46)
Dividends paid on preferred stock (21) (42) (42)
Dividends paid on common stock (202) (175) (153)
Changes in bank deposits and payments on bank advances — — (257)
Net cash used for financing activities (5,820) (228) (609)
Foreign exchange rate effect on cash (155) (56) 36
Net increase (decrease) in cash (993) (160) 519
Cash — beginning of period 2,421 2,581 2,062
Cash — end of period $ 1,428 $ 2,421 $ 2,581
Supplemental Disclosure of Cash Flow Information
Income taxes paid (received) $ 69 $ (486) $ 179
Interest paid $ 402 $ 461 $ 501
Supplemental Disclosure of Non-Cash Investing Activity
Conversion of fixed maturities, available-for-sale to equity securities, available-for-sale $ — $ 67 $ —
See Notes to Consolidated Financial Statements.
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THE HARTFORD FINANCIAL SERVICES GROUP, INC.
Consolidated Statements of Cash Flows