Schedule II - Condensed Financial Information of Registrant (Tables)

12 Months Ended

Dec. 31, 2015

	For the years ended
	December 31,
	2015			2014			2013

Operating expenses:
Interest	$	246	$		258	$		264
Intercompany interest		2			5			2
Loss on early extinguishment of debt		100			-			-
Other		147			82			69
Total operating expenses		495			345			335
Loss before income taxes		(495)			(345)			(335)
Income tax benefit		(135)			(89)			(109)
Loss of parent company		(360)			(256)			(226)
Equity in income of subsidiaries		2,454			2,358			1,702
Shareholders' net income		2,094			2,102			1,476

Shareholders' other comprehensive income (loss):

Net unrealized appreciation (depreciation) on securities		(202)			143			(410)
Net unrealized appreciation on derivatives		15			11			9
Net translation of foreign currencies		(212)			(144)			13
Postretirement benefits liability adjustment		85			(426)			539
Shareholders' other comprehensive income (loss)		(314)			(416)			151
Shareholders' comprehensive income	$	1,780		$	1,686		$	1,627

	As of December 31,
	2015			2014

Assets:
Cash and cash equivalents		$	16		$	51
Short term investments			54			-
Investments in subsidiaries			18,799			17,645
Intercompany			182			74
Other assets			497			526
Total assets		$	19,548		$	18,296


Liabilities:
Intercompany		$	1,086		$	1,138
Short-term debt			100			100
Long-term debt			4,910			4,858
Other liabilities			1,417			1,426
Total liabilities			7,513			7,522


Shareholders' Equity:
Common stock (shares issued, 296; authorized, 600)			74			74
Additional paid-in capital			2,859			2,769
Accumulated other comprehensive loss			(1,250)			(936)
Retained earnings			12,121			10,289
Less treasury stock, at cost			(1,769)			(1,422)
Total shareholders' equity			12,035			10,774
Total liabilities and shareholders' equity		$	19,548		$	18,296

	For the years ended
	December 31,
	2015		2014		2013

Cash Flows from Operating Activities:
Shareholders' Net Income	$	2,094	$	2,102	$	1,476
Adjustments to reconcile shareholders' net income
to net cash provided by operating activities:
Equity in income of subsidiaries		(2,454)		(2,358)		(1,702)
Dividends received from subsidiaries		880		1,648		506
Other liabilities		112		(73)		(245)
Loss on early extinguishment of debt		100		-		-
Other, net		33		173		63
Net cash provided by operating activities		765		1,492		98

Cash Flows from Investing Activities:
Short term investment purchased		(54)		-		-
Other, net		(14)		11		-
Net cash provided by / (used in) investing activities		(68)		11		-

Cash Flows from Financing Activities:
Net change in amounts due to / from affiliates		(161)		61		751
Net change in short-term debt		-		-		(100)
Net proceeds on issuance of long-term debt		894		-		-
Repayment of long-term debt		(938)		-		-
Issuance of common stock		154		110		150
Common dividends paid		(10)		(11)		(11)
Repurchase of common stock		(671)		(1,612)		(1,003)
Net cash used in financing activities		(732)		(1,452)		(213)
Net increase (decrease) in cash and cash equivalents		(35)		51		(115)
Cash and cash equivalents, beginning of year		51		-		115
Cash and cash equivalents, end of year	$	16	$	51	$	-

(In millions)		December 31, 2015		December 31, 2014 (1)
Short-term:
Commercial Paper	$	100	$	100
Total short-term debt	$	100	$	100
Long-term:
Uncollateralized debt:
$600 million, 2.75% Notes due 2016	$	-	$	598
$250 million, 5.375% Notes due 2017		249		249
$131 million, 6.35% Notes due 2018		131		131
$251 million, 8.5% Notes due 2019		-		250
$250 million, 4.375% Notes due 2020⁽²⁾		254		253
$300 million, 5.125% Notes due 2020 ⁽²⁾		303		302
$300 million, 4.5% Notes due 2021 ⁽²⁾		304		301
$750 million, 4% Notes due 2022		743		741
$100 million, 7.65% Notes due 2023		100		100
$17 million, 8.3% Notes due 2023		17		17
$900 million, 3.25% Notes due 2025		892		-
$300 million, 7.875 % Debentures due 2027		299		298
$83 million, 8.3% Step Down Notes due 2033		82		82
$500 million, 6.15% Notes due 2036		498		498
$300 million, 5.875% Notes due 2041		295		295
$750 million, 5.375% Notes due 2042		743		743
Total long-term debt	$	4,910	$	4,858
(1) As explained in Note 1, in the fourth quarter of 2015, the Company retrospectively adopted ASU 2015-03 that requires debt issuance costs to be netted against the carrying value of the debt. The impact on 2014 balances was not material.
(2) In 2014, the Company entered into interest rate swap contracts hedging a portion of these fixed-rate debt instruments.