Supplemental Cash Flow Information

6 Months Ended

Jun. 30, 2012

Supplemental Cash Flow Information

Supplemental Cash Flow Information

3.  Supplemental Cash Flow Information

Non-cash modifications of certain mortgage loans, fixed income securities, limited partnership interests and other investments, as well as mergers completed with equity securities, totaled $109 million and $513 million for the six months ended June 30, 2012 and 2011, respectively.  Non-cash financing activities include $39 million related to the issuance of Allstate shares for vested restricted stock units for the six months ended June 30, 2012.

Liabilities for collateral received in conjunction with the Company’s securities lending program and over-the-counter (“OTC”) derivatives are reported in other liabilities and accrued expenses or other investments.  The accompanying cash flows are included in cash flows from operating activities in the Condensed Consolidated Statements of Cash Flows along with the activities resulting from management of the proceeds, which are as follows:

($ in millions)		Six months ended June 30,
		2012			2011
Net change in proceeds managed
Net change in short-term investments	$	(202	)	$	(421	)
Operating cash flow used		(202	)		(421	)
Net change in cash		(1	)		(2	)
Net change in proceeds managed	$	(203	)	$	(423	)
Net change in liabilities
Liabilities for collateral, beginning of year	$	(462	)	$	(484	)
Liabilities for collateral, end of period		(665	)		(907	)
Operating cash flow provided	$	203		$	423