Travelers 2015 Annual Report Download - page 240

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
14. PENSION PLANS, RETIREMENT BENEFITS AND SAVINGS PLANS (Continued)
Fair Value—Other Postretirement Benefit Plan
The Company’s other postretirement benefit plan had financial assets of $15 million and
$16 million at December 31, 2015 and 2014, respectively, which are measured at fair value on a
recurring basis. The assets are primarily corporate bonds and short-term securities and categorized as
level 2 in the fair value hierarchy.
Estimated Future Benefit Payments
The following table presents the estimated benefits expected to be paid by the Company’s pension
and postretirement benefit plans for the next ten years (reflecting estimated future employee service).
Benefits Expected to be Paid
Postretirement
(in millions) Pension Plans Benefit Plans
2016 ...................................... $ 215 $14
2017 ...................................... 218 14
2018 ...................................... 224 15
2019 ...................................... 231 15
2020 ...................................... 237 15
2021 through 2025 ............................ 1,215 76
Savings Plan
The Company has a savings plan, The Travelers 401(k) Savings Plan (the Savings Plan), in which
substantially all U.S. domestic Company employees are eligible to participate. Under the Savings Plan,
the Company matches employee contributions up to 5% of eligible pay, with a maximum annual match
of $6,000 which becomes 100% vested after three years of service. The Company’s matching
contribution is made in cash and invested according to the employee’s current investment elections and
can be reinvested into other investment options in accordance with the terms of the plan. The
Company’s non-U.S. employees participate in separate savings plans. The total expense related to all of
the savings plans was $109 million, $103 million and $100 million for the years ended December 31,
2015, 2014 and 2013, respectively.
All common shares held by the Savings Plan are considered outstanding for basic and diluted EPS
computations and dividends paid on all shares are charged to retained earnings.
15. LEASES
Rent expense was $202 million, $215 million and $196 million in 2015, 2014 and 2013, respectively.
Future minimum annual rental payments under noncancellable operating leases for 2016, 2017,
2018, 2019 and 2020 are $159 million, $139 million, $102 million, $80 million and $60 million,
respectively, and $114 million for 2021 and thereafter. Future sublease rental income aggregating
approximately $6 million will partially offset these commitments.
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