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Consolidated Statement of Cash Flows (Unaudited) - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Cash flows from operating activities    
Net income $ 1,355 $ 1,645
Adjustments to reconcile net income to net cash provided by operating activities:    
Net realized investment gains [1] (10) (20)
Depreciation and amortization 413 429
Deferred federal income tax expense 75 142
Amortization of deferred acquisition costs 1,960 1,926
Equity in income from other investments (44) (134)
Premiums receivable (567) (486)
Reinsurance recoverables 316 263
Deferred acquisition costs (2,062) (1,991)
Claims and claim adjustment expense reserves (387) (826)
Unearned premium reserves 531 362
Other operating activities (287) (435)
Net cash provided by operating activities 1,293 875
Cash flows from investing activities    
Proceeds from maturities of fixed maturities 3,773 5,314
Proceeds from sales of investments:    
Fixed maturities 739 1,226
Equity securities 38 28
Real estate investments 69 10
Other investments 343 354
Purchases of investments:    
Fixed maturities (5,705) (6,239)
Equity securities (26) (22)
Real estate investments (20) (69)
Other investments (290) (275)
Net sales of short-term securities 681 433
Securities transactions in course of settlement 461 183
Other investing activities (154) (178)
Net cash provided by (used in) investing activities (91) 765
Cash flows from financing activities    
Treasury stock acquired - share repurchase authorization (1,100) (1,400)
Treasury stock acquired - net employee share-based compensation (59) (72)
Dividends paid to shareholders (375) (369)
Payment of debt (400)  
Issuance of debt 491  
Issuance of common stock - employee share options 129 117
Excess tax benefits from share-based payment arrangements   31
Net cash used in financing activities (1,314) (1,693)
Effect of exchange rate changes on cash (3) (4)
Net decrease in cash (115) (57)
Cash at beginning of year 380 374
Cash at end of period 265 317
Supplemental disclosure of cash flow information    
Income taxes paid 467 597
Interest paid $ 180 $ 183
[1] Total other-than-temporary impairment (OTTI) losses were $(4) million and $(8) million for the three months ended June 30, 2016 and 2015, respectively, and $(32) million and $(12) million for the six months ended June 30, 2016 and 2015, respectively. Of total OTTI, credit losses of $(4) million and $(6) million for the three months ended June 30, 2016 and 2015, respectively, and $(22) million and $(9) million for the six months ended June 30, 2016 and 2015, respectively, were recognized in net realized investment gains. In addition, unrealized gains (losses) from other changes in total OTTI of $0 million and $(2) million for the three months ended June 30, 2016 and 2015, respectively, and $(10) million and $(3) million for the six months ended June 30, 2016 and 2015, respectively, were recognized in other comprehensive income (loss) as part of changes in net unrealized gains on investment securities having credit losses recognized in the consolidated statement of income.