Consolidated Statements of Income | Consolidated Balance Sheets | Consolidated Statements of Changes in Shareholders' Equity
Consolidated Statements of Cash Flows | Notes to Consolidated Financial Statements

2004

The Progressive Corporation and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2004, 2003 and 2002

1

Reporting and Accounting Policies

8

Employee Benefit Plans

2

Investments

9

Segment Information

3

Income Taxes

10

Other Comprehensive Income

4

Debt

11

Litigation

5

Loss and Loss Adjustment Expense Reserves

12

Commitments and Contingencies

6

Reinsurance

13

Fair Value of Financial Instruments

7

Statutory Financial Information

14

Related Party Transactions

10 Other Comprehensive Income

The components of other comprehensive income for the years ended December 31 were as follows:



1) Represents adjustments for gains (losses) realized in net income for securities held in the portfolio at December 31 of the preceding year.

2) Entered into for the purpose of managing interest rate risk associated with debt issuances. See Note 4 — Debt. The Company expects to reclassify $1.5 million into income within the next 12 months.

3) Foreign currency translation adjustments have no tax effect.

continue to NOTE 11 LITIGATION 2004 Annual Report

See Current Version:
Notes to Consolidated Financial Statements, 1st Quarter 2005