Travelers 2011 Annual Report Download - page 252

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
15. CONTINGENCIES, COMMITMENTS AND GUARANTEES (Continued)
interpretation of the tax law, or certain named litigation. Such indemnification provisions generally
survive for periods ranging from seven years following the applicable closing date to the expiration of
the relevant statutes of limitations, although, in some cases, there may be other agreed upon term
limitations or no term limitations. Certain of these contingent obligations are subject to deductibles
which have to be incurred by the obligee before the Company is obligated to make payments. The
maximum amount of the Company’s contingent obligation for indemnifications related to the sale of
business entities that are quantifiable was $1.22 billion at December 31, 2011, of which $9 million was
recognized on the balance sheet at that date.
16. NONCASH INVESTING AND FINANCING ACTIVITIES
There were no material noncash financing or investing activities during the years ended
December 31, 2011, 2010 and 2009.
17. CONSOLIDATING FINANCIAL STATEMENTS OF THE TRAVELERS COMPANIES, INC. AND
SUBSIDIARIES
The following consolidating financial statements of the Company have been prepared pursuant to
Rule 3-10 of Regulation S-X. These consolidating financial statements have been prepared from the
Company’s financial information on the same basis of accounting as the consolidated financial
statements. The Travelers Companies, Inc. has fully and unconditionally guaranteed certain debt
obligations of TPC, its wholly-owned subsidiary, which totaled $1.20 billion at December 31, 2011.
Prior to the merger of TPC and SPC in 2004, TPC fully and unconditionally guaranteed the
payment of all principal, premiums, if any, and interest on certain debt obligations of its wholly-owned
subsidiary TIGHI. The Travelers Companies, Inc. has fully and unconditionally guaranteed such
guarantee obligations of TPC. TPC is deemed to have no assets or operations independent of TIGHI.
Consolidating financial information for TIGHI has not been presented herein because such financial
information would be substantially the same as the financial information provided for TPC.
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