The Hartford 2009 Annual Report Download - page 219

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
F-70
14. Debt
The Hartford’ s long-term debt securities are issued by either The Hartford Financial Services Group, Inc. (“HFSG Holding Company”)
or Hartford Life, Inc. (“HLI”) and are unsecured obligations of HFSG Holding Company or HLI and rank on a parity with all other
unsecured and unsubordinated indebtedness of HFSG Holding Company or HLI. In addition to HFSG Holding Company and HLI, The
Hartford acquired $5 in junior subordinated debt of Federal Trust Corporation, see Note 22.
The following table presents short-term and long-term debt by issuance as of December 31, 2009 and 2008.
Short-Term Debt 2009 2008
Commercial paper $ — $ 374
Current maturities of long-term debt and capital lease obligations 343 24
Total Short-Term Debt $ 343 $ 398
Long-Term Debt
Senior Notes and Debentures
7.9% Notes, due 2010 $ — $ 275
5.25% Notes, due 2011 400 400
4.625% Notes, due 2013 320 319
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 500 500
6.0% Notes, due 2019 499 499
7.65% Notes, due 2027 149 148
7.375% Notes, due 2031 92 92
5.95% Notes, due 2036 298 298
6.1% Notes, due 2041 323 323
Total Senior Notes and Debentures 3,779 4,052
Junior Subordinated Debentures
3 month LIBOR plus 295 basis points, Notes due 2033 5 —
8.125% Notes, due 2068 500 500
10.0% Notes, due 2068 1,212 1,203
Total Junior Subordinated Debentures 1,717 1,703
Capital lease obligations — 68
Total Long-Term Debt $ 5,496 $ 5,823
The effective interest rate on the 6.1% senior notes due 2041 is 7.9%, on the 3 month LIBOR plus 295 basis points junior subordinated
debentures due 2033 is 3.0%, 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 2009, 2008 and 2007, respectively.
For the years ended December 31,
2009 2008 2007
Short-term debt $3 $ 11 $13
Long-term debt 473 332 250
Total interest expense $476 $ 343 $263
The weighted-average interest rate on commercial paper was 2.4%, 2.9% and 5.1% for 2009, 2008 and 2007, respectively.
Senior Notes
On November 16, 2008, The Hartford repaid its $330, 5.663% senior notes at maturity.
On November 1, 2008, The Hartford repaid its $200, 6.375% senior notes at maturity.
On August 16, 2008, The Hartford repaid its $425, 5.55% senior notes at maturity.
On May 12, 2008, The Hartford issued $500 of 6.0% senior notes due January 15, 2019.
On March 4, 2008, The Hartford issued $500 of 6.3% senior notes due March 15, 2018.