Supplemental Cash Flow Information

3 Months Ended

Mar. 31, 2013

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 $57 million and $22 million for the three months ended March 31, 2013 and 2012, respectively.  Non-cash financing activities include $87 million and $39 million related to the issuance of Allstate shares for vested restricted stock units for the three months ended March 31, 2013 and 2012, respectively.

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 for the three months ended March 31 are as follows:

($ in millions)		2013			2012
Net change in proceeds managed
Net change in short-term investments	$	(25	)	$	(210	)
Operating cash flow used		(25	)		(210	)
Net change in cash		6			(2	)
Net change in proceeds managed	$	(19	)	$	(212	)
Net change in liabilities
Liabilities for collateral, beginning of year	$	(808	)	$	(462	)
Liabilities for collateral, end of period		(827	)		(674	)
Operating cash flow provided	$	19		$	212