The Hartford 2013 Annual Report Download - page 218

F-82
Lease Commitments
The total rental expense on operating leases was $79, $105, and $122 in 2013, 2012, and 2011, respectively, which excludes sublease
rental income of $8, $6, and $13 in 2013, 2012 and 2011, respectively.
Future minimum lease commitments as of December 31, 2013 are as follows:
Operating Leases
2014 $ 59
2015 51
2016 40
2017 31
2018 22
Thereafter 28
Total minimum lease payments [1] $ 231
[1] Excludes expected future minimum sublease income of approximately $4, $3, $2, $2, $2 and $4, in 2014, 2015, 2016, 2017, 2018 and thereafter
respectively.
The Company’s lease commitments consist primarily of lease agreements for office space, data processing, furniture and fixtures, office
equipment, and transportation equipment that expire at various dates. Capital lease assets are included in property and equipment.
Unfunded Commitments
As of December 31, 2013, the Company has outstanding commitments totaling $703, of which $531 is committed to fund limited
partnership and other alternative investments, which may be called by the partnership during the commitment period to fund the
purchase of new investments and partnership expenses. Additionally, $165 is largely related to commercial whole loans the Company is
expecting to fund in the first half of 2014. The remaining outstanding commitments are related to various funding obligations associated
with private placement securities.
Guaranty Fund and Other Insurance-related Assessments
In all states, insurers licensed to transact certain classes of insurance are required to become members of a guaranty fund. In most states,
in the event of the insolvency of an insurer writing any such class of insurance in the state, members of the funds are assessed to pay
certain claims of the insolvent insurers. A particular state’s fund assesses its members based on their respective written premiums in the
state for the classes of insurance in which the insolvent insurer was engaged. Assessments are generally limited for any year to [one] or
[two] percent of the premiums written per year depending on the state.
The Hartford accounts for guaranty fund and other related assessments in accordance with Accounting Standards Codification 405-30,
“Insurance-Related Assessments.” Liabilities for guaranty fund and other insurance-related assessments are accrued when an assessment
is probable, when it can be reasonably estimated, and when the event obligating the Company to pay an imposed or probable assessment
has occurred. Liabilities for guaranty funds and other insurance-related assessments are not discounted and are included as part of other
liabilities in the Consolidated Balance Sheets. As of December 31, 2013 and 2012, the liability balance was $138 and $160 respectively.
As of December 31, 2013 and 2012, $37 and $34 related to premium tax offsets were included in other assets. In 2011, The Company
recognized $22 for expected assessments related to the Executive Life Insurance Company of New York ("ELNY") insolvency.
Table of Contents THE HARTFORD FINANCIAL SERVICES GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
15. Commitments and Contingencies (continued)