The Hartford 2008 Annual Report Download - page 447

Table of Contents
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
14. Debt
The Hartford’s long-term debt securities are issued by either The Hartford Financial Services Group, Inc. (“HFSG”) or HLI
and are unsecured obligations of HFSG or HLI and rank on a parity with all other unsecured and unsubordinated
indebtedness of HFSG or HLI.
The following table presents short-term and long-term debt by issuance and consumer notes as of December 31, 2008 and
2007.
Short-Term Debt 2008 2007
Commercial paper $ 374 $ 373
Current maturities of long-term debt and capital lease obligations 24 992
Total Short-Term Debt $ 398 $ 1,365
Long-Term Debt
Senior Notes and Debentures
7.9% Notes, due 2010 275 275
5.25% Notes, due 2011 400 400
4.625% Notes, due 2013 319 319
4.75% Notes, due 2014 199 199
7.3% Notes, due 2015 200 200
5.5% Notes, due 2016 300 300
5.375% Notes, due 2017 499 499
6.3% Notes, due 2018 500 —
6.0% Notes, due 2019 499 —
7.65% Notes, due 2027 148 147
7.375% Notes, due 2031 92 92
5.95% Notes, due 2036 298 298
6.1% Notes, due 2041 323 322
Total Senior Notes and Debentures 4,052 3,051
Junior Subordinated Debentures
8.125% Notes, due 2068 500 —
10.0% Notes, due 2068 1,203 —
Total Junior Subordinated Debentures 1,703 —
Capital lease obligations 68 91
Total Long-Term Debt $ 5,823 $ 3,142
The effective interest rate on the 6.1% senior notes due 2041 is 7.9% and on the 10.0% junior subordinated debentures due
2068 is 15.3%. The effective interest rate on the remaining notes does not differ materially from the stated rate.
Interest Expense
The following table presents interest expense incurred for 2008, 2007 and 2006, respectively.
For the years ended December 31,
2008 2007 2006
Short-term debt $ 11 $ 13 $ 31
Long-term debt 332 250 246
Total interest expense $ 343 $ 263 $ 277
The weighted-average interest rate on commercial paper was 2.9%, 5.1% and 5.3% for 2008, 2007 and 2006, respectively.
F-77
Source: HARTFORD FINANCIAL S, 10-K, February 12, 2009