Schedule II - Condensed Financial Information of Registrant (Tables)

12 Months Ended

Dec. 31, 2014

	For the years ended
	December 31,
	2014			2013			2012

Operating expenses:
Interest	$	258	$		264	$		262
Intercompany interest		5			2			-
Other		82			69			190
Total operating expenses		345			335			452
Loss before income taxes		(345)			(335)			(452)
Income tax benefit		(89)			(109)			(143)
Loss of parent company		(256)			(226)			(309)
Equity in income of subsidiaries		2,358			1,702			1,932
Shareholders' net income		2,102			1,476			1,623

Shareholders' other comprehensive income (loss):

Net unrealized appreciation (depreciation) on securities		143			(410)			147
Net unrealized appreciation (depreciation), derivatives		11			9			(5)
Net translation of foreign currencies		(144)			13			66
Postretirement benefits liability adjustment		(426)			539			(92)
Shareholders' other comprehensive income (loss)		(416)			151			116
Shareholders' comprehensive income	$	1,686		$	1,627		$	1,739

	As of December 31,
	2014			2013

Assets:
Cash and cash equivalents		$	51		$	-
Investments in subsidiaries			17,645			16,932
Intercompany			74			40
Other assets			553			435
Total assets		$	18,323		$	17,407


Liabilities:
Intercompany		$	1,138		$	1,043
Short-term debt			100			100
Long-term debt			4,885			4,871
Other liabilities			1,426			826
Total liabilities			7,549			6,840


Shareholders' Equity:
Common stock (shares issued, 296; authorized, 600)			74			92
Additional paid-in capital			2,769			3,356
Accumulated other comprehensive loss			(936)			(520)
Retained earnings			10,289			13,676
Less treasury stock, at cost			(1,422)			(6,037)
Total shareholders' equity			10,774			10,567
Total liabilities and shareholders' equity		$	18,323		$	17,407

	For the years ended
	December 31,
	2014		2013		2012

Cash Flows from Operating Activities:
Shareholders' Net Income	$	2,102	$	1,476	$	1,623
Adjustments to reconcile shareholders' net income
to net cash provided by operating activities:
Equity in income of subsidiaries		(2,358)		(1,702)		(1,932)
Dividends received from subsidiaries		1,648		506		671
Other liabilities		(73)		(245)		(213)
Other, net		173		63		191
Net cash provided by operating activities		1,492		98		340

Cash Flows from Investing Activities:
Other, net		11		-		(19)
Net cash provided by / (used in) investing activities		11		-		(19)

Cash Flows from Financing Activities:
Net change in amounts due to / from affiliates		61		751		(208)
Net change in short-term debt		-		(100)		100
Issuance of common stock		110		150		121
Common dividends paid		(11)		(11)		(11)
Repurchase of common stock		(1,612)		(1,003)		(208)
Net cash used in financing activities		(1,452)		(213)		(206)
Net increase (decrease) in cash and cash equivalents		51		(115)		115
Cash and cash equivalents, beginning of year		-		115		-
Cash and cash equivalents, end of year	$	51	$	-	$	115

(In millions)		December 31, 2014		December 31, 2013
Short-term:
Commercial Paper	$	100	$	100
Total short-term debt	$	100	$	100
Long-term:
Uncollateralized debt:
$600 million, 2.75% Notes due 2016	$	600	$	600
$250 million, 5.375% Notes due 2017		250		250
$131 million, 6.35% Notes due 2018		131		131
$251 million, 8.5% Notes due 2019		251		251
$250 million, 4.375% Notes due 2020⁽¹⁾		254		249
$300 million, 5.125% Notes due 2020 ⁽¹⁾		303		299
$300 million, 4.5% Notes due 2021 ⁽¹⁾		303		299
$750 million, 4% Notes due 2022		745		744
$100 million, 7.65% Notes due 2023		100		100
$17 million, 8.3% Notes due 2023		17		17
$300 million, 7.875 % Debentures due 2027		300		300
$83 million, 8.3% Step Down Notes due 2033		83		83
$500 million, 6.15% Notes due 2036		500		500
$300 million, 5.875% Notes due 2041		298		298
$750 million, 5.375% Notes due 2042		750		750
Total long-term debt	$	4,885	$	4,871
⁽¹⁾ In 2014, the Company entered into interest rate swap contracts hedging a portion of these fixed-rate debt instruments.