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SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT
 12 Months Ended
Dec. 31, 2014
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT  
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT

THE ALLSTATE CORPORATION AND SUBSIDIARIES
SCHEDULE II —
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
STATEMENTS OF OPERATIONS

($ in millions)
   Year Ended December 31,  
 
   2014   2013   2012  

Revenues

                    

Investment income, less investment expense

   $ 3   $ 3   $ 6  

Other income

     67     42     10  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

 

     70     45     16  

Expenses

    
 		    
 		    
 		  

Interest expense

     321     366     372  

Loss on extinguishment of debt

     1     491     —  

Pension and other postretirement benefit expense          

     41     (184 )   —  

Other operating expenses

     38     30     22  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

 

     401     703     394  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Loss from operations before income tax benefit and equity in net income of subsidiaries

    
(331
)		  
(658
)		  
(378
)

Income tax benefit

    
(142
)		  
(251
)		  
(137
)
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Loss before equity in net income of subsidiaries

     (189 )   (407 )   (241 )

Equity in net income of subsidiaries

    
3,039		    
2,687		    
2,547		  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net income

     2,850     2,280     2,306  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Preferred stock dividends

    
104		    
17		    
—		  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net income available to common shareholders

    
2,746		    
2,263		    
2,306		  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Other comprehensive (loss) income, after-tax

    
 		    
 		    
 		  

Changes in:

                    

Unrealized net capital gains and losses

     280     (1,188 )   1,434  

Unrealized foreign currency translation adjustments

     (40 )   (32 )   14  

Unrecognized pension and other postretirement benefit cost

     (725 )   1,091     (302 )
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Other comprehensive (loss) income, after-tax

     (485 )   (129 )   1,146  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Comprehensive income

   $ 2,365   $ 2,151   $ 3,452  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

THE ALLSTATE CORPORATION AND SUBSIDIARIES
SCHEDULE II (CONTINUED) —
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
STATEMENTS OF FINANCIAL POSITION

($ in millions, except par value data)
   December 31,  
 
   2014   2013  

Assets

              

Investments in subsidiaries

   $ 26,362   $ 26,813  

Fixed income securities, at fair value (amortized cost $878 and $210)          

     880     213  

Short-term investments, at fair value (amortized cost $673 and $565)          

     673     565  

Cash

     155     105  

Receivable from subsidiaries

     342     311  

Prepaid pension benefit asset

     —     401  

Deferred income taxes

     352     —  

Other assets

     221     110  
​ ​ ​ ​ ​ ​ ​ ​

Total assets

   $ 28,985   $ 28,518  
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​

Liabilities

    
 		    
 		  

Long-term debt

   $ 5,194   $ 6,157  

Pension and other postretirement benefit obligations

     977     358  

Deferred compensation

     263     255  

Dividends payable to shareholders

     155     131  

Deferred income taxes

     —     38  

Other liabilities

     92     99  
​ ​ ​ ​ ​ ​ ​ ​

Total liabilities

     6,681     7,038  
​ ​ ​ ​ ​ ​ ​ ​

Shareholders' equity

    
 		    
 		  

Preferred stock and additional capital paid-in, $1 par value, 25 million shares authorized, 72.2 thousand and 32.3 thousand shares issued and outstanding, $1,805 and $807.5 aggregate liquidation preference

     1,746     780  

Common stock, $.01 par value, 2.0 billion shares authorized and 900 million issued, 418 million and 449 million shares outstanding

     9     9  

Additional capital paid-in

     3,199     3,143  

Retained income

     37,842     35,580  

Deferred ESOP expense

     (23 )   (31 )

Treasury stock, at cost (482 million and 451 million shares)

     (21,030 )   (19,047 )

Accumulated other comprehensive income:

              

Unrealized net capital gains and losses

     1,926     1,646  

Unrealized foreign currency translation adjustments

     (2 )   38  

Unrealized pension and other postretirement benefit cost

     (1,363 )   (638 )
​ ​ ​ ​ ​ ​ ​ ​

Total accumulated other comprehensive income

     561     1,046  
​ ​ ​ ​ ​ ​ ​ ​

Total shareholders' equity

     22,304     21,480  
​ ​ ​ ​ ​ ​ ​ ​

Total liabilities and shareholders' equity

   $ 28,985   $ 28,518  
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​

THE ALLSTATE CORPORATION AND SUBSIDIARIES
SCHEDULE II (CONTINUED) —
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
STATEMENTS OF CASH FLOWS

($ in millions)
   Year Ended December 31,  
 
   2014   2013   2012  

Cash flows from operating activities

                    

Net income

   $ 2,850   $ 2,280   $ 2,306  

Adjustments to reconcile net income to net cash provided by operating activities:

                    

Equity in net income of subsidiaries

     (3,039 )   (2,687 )   (2,547 )

Dividends received from subsidiaries

     2,497     1,992     1,038  

Loss on extinguishment of debt

     1     491     —  

Changes in:

                    

Pension and other postretirement benefits

     41     (184 )   —  

Income taxes

     (158 )   113     (4 )

Operating assets and liabilities

     (29 )   25     59  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net cash provided by operating activities

     2,163     2,030     852  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Cash flows from investing activities

    
 		    
 		    
 		  

Proceeds from sales of investments

     351     —     92  

Investment purchases

     (1,174 )   (156 )   —  

Investment collections

     155     200     100  

Return of capital from subsidiaries

     1,200     37     154  

Change in short-term investments, net

     (88 )   (450 )   15  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net cash provided by (used in) investing activities          

     444     (369 )   361  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Cash flows from financing activities

    
 		    
 		    
 		  

Proceeds from issuance of long-term debt

     —     2,271     493  

Repayment of long-term debt

     (962 )   (2,627 )   (352 )

Proceeds from issuance of preferred stock

     965     781     —  

Dividends paid on common stock

     (477 )   (352 )   (534 )

Dividends paid on preferred stock

     (87 )   (6 )   —  

Treasury stock purchases

     (2,301 )   (1,834 )   (913 )

Shares reissued under equity incentive plans, net          

     266     170     85  

Excess tax benefits on share-based payment arrangements

     41     38     10  

Other

     (2 )   (1 )   (3 )
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net cash used in financing activities

     (2,557 )   (1,560 )   (1,214 )
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net increase (decrease) in cash

    
50		    
101		    
(1
)

Cash at beginning of year

     105     4     5  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Cash at end of year

   $ 155   $ 105   $ 4  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

THE ALLSTATE CORPORATION AND SUBSIDIARIES
SCHEDULE II (CONTINUED) —
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
NOTES TO CONDENSED FINANCIAL INFORMATION

1.     General

       The financial statements of the Registrant should be read in conjunction with the consolidated financial statements and notes thereto included in Item 8. The long-term debt presented in Note 12 "Capital Structure" are direct obligations of the Registrant, with the exception of the $44 million of synthetic lease obligations as of December 31, 2013. A majority of the pension and other postretirement benefits plans presented in Note 17 "Benefit Plans" are direct obligations of the Registrant.

       Participating subsidiaries fund the pension plans contributions under a master services cost sharing agreement. In addition, as a result of joint and several pension liability rules under the Internal Revenue Code and the Employee Retirement Income Security Act of 1974, as amended, many liabilities that arise in connection with pension plans are joint and several across all members of a controlled group of entities.

2.    Supplemental Disclosures of Cash Flow Information

       The Registrant paid $332 million, $359 million and $364 million of interest on debt in 2014, 2013 and 2012, respectively.