Increase to allowance through retained earnings for ASU 2016-13, after-tax

  
Cincinnati Financial Corporation and SubsidiariesConsolidated Statements of Shareholders’ Equity

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions) | Years ended December 31, |
|   | 2021 |  | 2020 |  | 2019 |
| Common Stock |  |  |  |  |  |
| Beginning of year | $ | 397  |  |  | $ | 397  |  |  | $ | 397  |  |
| Share-based awards | —  |  |  | —  |  |  | —  |  |
| End of year | 397  |  |  | 397  |  |  | 397  |  |
|  |  |  |  |  |  |
| Paid-In Capital |  |  |  |  |  |
| Beginning of year | 1,328  |  |  | 1,306  |  |  | 1,281  |  |
| Share-based awards | (14) |  |  | (15) |  |  | (12) |  |
| Share-based compensation | 33  |  |  | 31  |  |  | 30  |  |
| Other | 9  |  |  | 6  |  |  | 7  |  |
| End of year | 1,356  |  |  | 1,328  |  |  | 1,306  |  |
|  |  |  |  |  |  |
| Retained Earnings |  |  |  |  |  |
| Beginning of year | 10,085  |  |  | 9,257  |  |  | 7,625  |  |
|    Cumulative effect of change in accounting for credit losses as of      January 1, 2020 | —  |  |  | (2) |  |  | —  |  |
|  |  |  |  |  |  |
|    Adjusted beginning of year | 10,085  |  |  | 9,255  |  |  | 7,625  |  |
| Net income | 2,946  |  |  | 1,216  |  |  | 1,997  |  |
| Dividends declared | (406) |  |  | (386) |  |  | (365) |  |
|  |  |  |  |  |  |
| End of year | 12,625  |  |  | 10,085  |  |  | 9,257  |  |
|  |  |  |  |  |  |
| Accumulated Other Comprehensive Income |  |  |  |  |  |
| Beginning of year | 769  |  |  | 448  |  |  | 22  |  |
|  |  |  |  |  |  |
|  |  |  |  |  |  |
| Other comprehensive income (loss) | (121) |  |  | 321  |  |  | 426  |  |
|  |  |  |  |  |  |
| End of year | 648  |  |  | 769  |  |  | 448  |  |
|  |  |  |  |  |  |
| Treasury Stock |  |  |  |  |  |
| Beginning of year | (1,790) |  |  | (1,544) |  |  | (1,492) |  |
| Share-based awards | 18  |  |  | 15  |  |  | 21  |  |
| Shares acquired - share repurchase authorization | (144) |  |  | (261) |  |  | (67) |  |
| Shares acquired - share-based compensation plans | (8) |  |  | (5) |  |  | (9) |  |
| Other | 3  |  |  | 5  |  |  | 3  |  |
| End of year | (1,921) |  |  | (1,790) |  |  | (1,544) |  |
|  |  |  |  |  |  |
| Total Shareholders' Equity | $ | 13,105  |  |  | $ | 10,789  |  |  | $ | 9,864  |  |
|  |  |  |  |  |  |
| (In millions) |  |  |  |  |  |
| Common Stock - Shares Outstanding |  |  |  |  |  |
| Beginning of year | 160.9  |  |  | 162.9  |  |  | 162.8  |  |
| Share-based awards | 0.6  |  |  | 0.5  |  |  | 0.7  |  |
| Shares acquired - share repurchase authorization | (1.2) |  |  | (2.5) |  |  | (0.6) |  |
| Shares acquired - share-based compensation plans | (0.1) |  |  | (0.1) |  |  | (0.1) |  |
| Other | 0.1  |  |  | 0.1  |  |  | 0.1  |  |
| End of year | 160.3  |  |  | 160.9  |  |  | 162.9  |  |
|  |  |  |  |  |  |
|  |  |  |  |  |  |
|  |  |  |  |  |  |

Accompanying Notes are an integral part of these Consolidated Financial Statements.  
Cincinnati Financial Corporation - 2021 10-K - Page 125
