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Schedule II - Condensed Financial Information of Registrant
 12 Months Ended
Dec. 31, 2019
Condensed Financial Information Disclosure [Abstract]  
Schedule II — Condensed Financial Information of Registrant
Schedule II — Condensed Financial Information of Registrant Statement of Operations
 
 
Year Ended December 31,
($ in millions)

 
2019
 
2018
 
2017
Revenues
 
 
 
 
 
 
Investment income, less investment expense
 
$
35

 
$
25

 
$
10

Realized capital gains and losses
 
9

 
(10
)
 
(2
)
Other income
 
41

 
3

 
36

 
 
85

 
18

 
44

 
 
 
 
 
 
 
Expenses
 
 
 
 
 
 
Interest expense
 
355

 
337

 
334

Pension and other postretirement remeasurement gains and losses
 
103

 
454

 
(219
)
Pension and other postretirement benefit expense
 
(122
)
 
(116
)
 
(224
)
Other operating expenses
 
49

 
50

 
50

 
 
385

 
725

 
(59
)
 
 
 
 
 
 
 
(Loss) gain from operations before income tax benefit and equity in net income of subsidiaries
 
(300
)
 
(707
)
 
103

 
 
 
 
 
 
 
Income tax (benefit) expense
 
(75
)
 
(136
)
 
105

Loss before equity in net income of subsidiaries
 
(225
)
 
(571
)
 
(2
)
 
 
 
 
 
 
 
Equity in net income of subsidiaries
 
5,072

 
2,731

 
3,556

Net income
 
4,847

 
2,160

 
3,554

 
 
 
 
 
 
 
Preferred stock dividends
 
169

 
148

 
116

 
 
 
 
 
 
 
Net income applicable to common shareholders
 
4,678

 
2,012

 
3,438

 
 
 
 
 
 
 
Other comprehensive income (loss), after-tax
 
 
 
 
 
 
Changes in:
 
 
 
 
 
 
Unrealized net capital gains and losses
 
1,889

 
(754
)
 
319

Unrealized foreign currency translation adjustments
 
(10
)
 
(48
)
 
45

Unamortized pension and other postretirement prior service credit
 
(47
)
 
(59
)
 
(52
)
Other comprehensive income (loss), after-tax
 
1,832

 
(861
)
 
312

Comprehensive income
 
$
6,679

 
$
1,299

 
$
3,866


















See accompanying notes to condensed financial information and notes to consolidated financial statements.
The Allstate Corporation and Subsidiaries
Schedule II (Continued) — Condensed Financial Information of Registrant Statement of Financial Position
($ in millions, except par value data)
 
December 31,
 
 
2019
 
2018
Assets
 
 
 
 
Investments in subsidiaries
 
$
33,428

 
$
29,301

Fixed income securities, at fair value (amortized cost $458 and $355)
 
466

 
356

Short-term investments, at fair value (amortized cost $702 and $285)
 
702

 
285

Cash
 
2

 
—

Receivable from subsidiaries
 
448

 
426

Deferred income taxes
 
230

 
225

Other assets
 
86

 
92

Total assets
 
$
35,362

 
$
30,685

 
 
 
 
 
Liabilities
 
 
 
 
Long-term debt
 
$
6,631

 
$
6,451

Pension and other postretirement benefit obligations
 
1,081

 
1,050

Deferred compensation
 
327

 
281

Payable to subsidiaries
 
14

 
3

Notes due to subsidiaries
 
1,000

 
1,250

Dividends payable to shareholders
 
199

 
198

Other liabilities
 
112

 
140

Total liabilities
 
9,364

 
9,373

 
 
 
 
 
Shareholders’ equity
 
 
 
 
Preferred stock and additional capital paid-in, $1 par value, 25 million shares authorized, 92.5 thousand and 79.8 thousand shares issued and outstanding, $2,313 and $1,995 aggregate liquidation preference
 
2,248

 
1,930

Common stock, $.01 par value, 2.0 billion shares authorized and 900 million issued, 319 million and 332 million shares outstanding
 
9

 
9

Additional capital paid-in
 
3,463

 
3,310

Retained income
 
48,074

 
44,033

Deferred ESOP expense
 
—

 
(3
)
Treasury stock, at cost (581 million and 568 million shares)
 
(29,746
)
 
(28,085
)
Accumulated other comprehensive income:
 
 
 
 
Unrealized net capital gains and losses
 
1,887

 
(2
)
Unrealized foreign currency translation adjustments
 
(59
)
 
(49
)
Unamortized pension and other postretirement prior service credit
 
122

 
169

Total accumulated other comprehensive income
 
1,950

 
118

Total shareholders’ equity
 
25,998

 
21,312

Total liabilities and shareholders’ equity
 
$
35,362

 
$
30,685













See accompanying notes to condensed financial information and notes to consolidated financial statements.
The Allstate Corporation and Subsidiaries
Schedule II (Continued) — Condensed Financial Information of Registrant Statement of Cash Flows
($ in millions)
 
Years Ended December 31,
 
 
2019
 
2018
 
2017
Cash flows from operating activities
 
 
 
 
 
 
Net income
 
$
4,847

 
$
2,160

 
$
3,554

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
 
 
Equity in net income of subsidiaries
 
(5,072
)
 
(2,731
)
 
(3,556
)
Dividends received from subsidiaries
 
2,434

 
2,059

 
1,671

Realized capital gains and losses
 
(9
)
 
10

 
2

Pension and other postretirement remeasurement gains and losses
 
103

 
454

 
(219
)
Changes in:
 
 
 
 
 
 
Pension and other postretirement benefits
 
(122
)
 
(116
)
 
(224
)
Income taxes
 
13

 
(28
)
 
232

Operating assets and liabilities
 
111

 
160

 
56

Net cash provided by operating activities
 
2,305

 
1,968

 
1,516

 
 
 
 
 
 
 
Cash flows from investing activities
 
 
 
 
 
 
Proceeds from sales of investments
 
1,094

 
1,370

 
880

Proceeds from sales of investments to subsidiaries
 
—

 
390

 
—

Investment purchases
 
(892
)
 
(1,037
)
 
(748
)
Investment collections
 
65

 
108

 
13

Capital contribution or return of capital from subsidiaries
 
43

 
(975
)
 
42

Change in short-term investments, net
 
(417
)
 
(115
)
 
48

Net cash (used in) provided by investing activities
 
(107
)
 
(259
)
 
235

 
 
 
 
 
 
 
Cash flows from financing activities
 
 
 
 
 
 
Proceeds from borrowings from subsidiaries
 
1,000

 
1,250

 
300

Repayment of notes due to subsidiaries
 
(1,250
)
 
(250
)
 
(50
)
Proceeds from issuance of long-term debt
 
491

 
498

 
—

Redemption of preferred stock
 
(1,132
)
 
(385
)
 
—

Redemption and repayment of long-term debt
 
(317
)
 
(400
)
 
—

Proceeds from issuance of preferred stock
 
1,414

 
557

 
—

Dividends paid on common stock
 
(653
)
 
(614
)
 
(525
)
Dividends paid on preferred stock
 
(134
)
 
(134
)
 
(116
)
Treasury stock purchases
 
(1,735
)
 
(2,303
)
 
(1,495
)
Shares reissued under equity incentive plans, net
 
120

 
73

 
135

Other
 
—

 
(1
)
 
(2
)
Net cash used in financing activities
 
(2,196
)
 
(1,709
)
 
(1,753
)
 
 
 
 
 
 
 
Net increase (decrease) in cash
 
2

 
—

 
(2
)
Cash at beginning of year
 
—

 
—

 
2

Cash at end of year
 
$
2

 
$
—

 
$
—










See accompanying notes to condensed financial information and notes to consolidated financial statements.
The Allstate Corporation and Subsidiaries
Schedule II (Continued) — Condensed Financial Information of Registrant
Notes to Condensed Financial Information
1.     General
Pursuant to rules and regulations of the SEC, the unconsolidated condensed financial statements of the Parent Company do not reflect all of the information and notes normally included with financial statements prepared in accordance with GAAP. Therefore, these condensed 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. 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.   Notes due to subsidiaries
On June 19, 2019, the Registrant issued a $1.00 billion note, with a rate of 2.63% due on June 19, 2020 to Kennett Capital Inc. The proceeds of this issuance were used for cash management purposes.
On October 11, 2018 and December 18, 2018, the Registrant issued $250 million and $1.00 billion notes, with a rate of 2.49% and 3.03% due on April 11, 2019 and June 18, 2019, respectively, both to its wholly owned subsidiary Kennett Capital Inc. The proceeds of these issuances were used for cash management purposes. On April 11, 2019 and June 18, 2019, the Registrant repaid $250 million and $1.00 billion, respectively, to Kenneth Capital Inc.
3.    Supplemental Disclosures of Cash Flow Information
The Registrant paid $312 million, $330 million and $331 million of interest on debt in 2019, 2018 and 2017, respectively.