Travelers 2005 Annual Report Download - page 116

104
Contractual Obligations
The following table excludes short-term obligations. The table also excludes estimated cash flows of
claim and claim related payments, which are presented in the table that follows. The contractual
obligations, which include only liabilities at December 31, 2005 with a cash payment requirement for
settlement, were as follows:
Payments Due by Period
(in millions) Total
Less
than
1
Year
1-3
Years
3-5
Years
After 5
Years
Debt(1)
Medium term notes .................................. $ 298 $ 56 $ 221 $ 21 $ —
Convertible notes .................................... 893 —— — 893
Senior notes ......................................... 3,342 150 1,342 250 1,600
Capital trusts ........................................ 928 —— — 928
Zero coupon convertible notes......................... 141 —— 141 —
Private placement notes............................... 16 4 6 4 2
Total debt ........................................... 5,618 210 1,569 416 3,423
Operating leases(2) .................................... 757 173 281 139 164
Purchase obligations
Information systems administration and maintenance
commitments(3)................................... 109 49 39 21 —
Reinsurance brokeragecommitment(4) ................. 140 20 40 40 40
Other purchase commitments(5) ....................... 87407 4 36
Total purchase obligations ............................ 336 10986 65 76
Long-term liabilities
Unfunded investment commitments(6)................. 931 186 390 226 129
Total long-term liabilities............................. 931 186 390 226 129
Total Contractual Obligations........................... $ 7 ,642 $ 678 $ 2,326 $ 846 $3,792
(1) See note 10 of the notes to the Company’s consolidated financial statements for a further discussion.
(2) Represents agreements entered into in the ordinary course of business to lease office space,
equipment and furniture.
(3) Includes agreements with vendors to purchase system software administration and maintenance
services.
(4)In connection with the sale of its insurance brokerage operations, the Company committed to acquire
brokerage services from the buyer through2012. See note 17.
(5) Includes commitments to vendors entered into in the ordinary course of business for goods and
services including office supplies, archival services, etc.
(6) Represents estimated timing for fulfillingunfunded commitments for investments in real estate
partnerships, private equities and hedge funds.
The Company is not required to make any contributions to its qualified pension plan in 2006 and does
not have a best estimate of contributions expected to be paid to the qualified pension plan. Accordingly,
any future contributions are not included in the foregoing contractual obligation table.