The Hartford 2008 Annual Report Download - page 400

Table of Contents
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
4. Fair Value Measurements (continued)
Financial Instruments Not Carried at Fair Value
SFAS 107 requires additional disclosure of fair value information of financial instruments. The following include
disclosures for other financial instruments not carried at fair value and not included in above FAS 157 discussion.
The carrying amounts and fair values of The Hartford’s financial instruments not carried at fair value, at December 31, 2008
and 2007 were as follows:
2008 2007
Carrying Fair Carrying Fair
Amount Value Amount Value
Assets
Policy loans $ 2,208 $ 2,435 $ 2,061 $ 2,061
Mortgage loans on real estate 6,469 5,654 5,410 5,407
Liabilities
Other policyholder funds and benefits
payable [1] $ 14,839 14,576 $ 15,480 $ 15,429
Commercial paper [2] 374 374 373 373
Long-term debt [3] 5,755 4,539 4,006 4,118
Consumer Notes [4] 1,205 1,188 804 809
[1] Excludes guarantees on variable annuities, group accident and health and universal life insurance contracts, including
corporate owned life insurance.
[2] Included in short-term debt in the consolidated balance sheets.
[3] Excludes capital lease obligations and includes current maturities of long-term debt.
[4] Excludes amounts carried at fair value and included in FAS 157 disclosures above.
• Fair value for policy loans and consumer notes were estimated using discounted cash flow calculations using current
interest rates.
• Fair values for mortgage loans on real estate were estimated using discounted cash flow calculations based on current
incremental lending rates for similar type loans. Current incremental lending rates reflect changes in credit spreads and
the remaining terms of the loans.
• Other policyholder funds and benefits payable, not carried at fair value and not included in above FAS 157 fair value
information, is determined by estimating future cash flows, discounted at the current market rate.
• Carrying amounts approximate fair value for commercial paper.
• Fair value for long-term debt is based on market quotations from independent third party pricing services.
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Source: HARTFORD FINANCIAL S, 10-K, February 12, 2009