Travelers 2006 Annual Report Download - page 125

113
The contractual obligations related to debt, operating leases, purchase obligations, long-term
unfunded investment commitments and estimated claims and claims related payments (gross of the
estimated reinsurance recoveries), at December 31, 2006 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.......................... $ 242$ 72 $149 $ 21 $ —
Convertible notes ............................893 — — — 893
Senior notes................................3,992 942 400 250 2,400
Capital trusts................................335 81 — — 254
Zero coupon convertible notes................ 141 — 141 — —
Private placement notes ......................12 3 5 4 —
Total debt principal..........................5,6151,098 695 275 3,547
Interest.....................................4,356 296 475 426 3,159
Total long-term debt obligations............. 9,971 1,394 1,170 701 6,706
Operating leases(2)............................ 908 185 298 153 272
Purchase obligations
Information systems administration and
maintenance commitments(3)...............13154 50 27 —
Reinsurance brokerage commitment(4) ........ 12020 40 40 20
Other purchase commitments(5). .............. 8035 6 3 36
Total purchase obligations.................... 331 109 96 70 56
Long-term unfunded investment commitments(6) .1,392 337 524 329 202
Estimated claims and claims related payments
Claims and claim adjustment expenses(7) ....... 60,357 16,879 18,803 8,752 15,923
Claims from large deductible policies(8) ........ — — — — —
Loss-based assessments(9).................... 20629 47 22 108
Reinsurance contracts accounted for as
deposits(10)............................... 320 109 207 — 4
Payout from cededfunds withheld(11).......... 371 79 141 8 143
Total estimated claims and claims related
payments ................................. 61,254 17,096 19,198 8,782 16,178
Total .....................................$ 73,856 $ 19,121 $ 21,286 $ 10,035 $ 2 3,414
(1) See note 7 of the notes to the Company’s consolidated financial statements for a further discussion.
Because the amounts reported in the foregoing table include principal and interest, the total long-
term obligations will not agree with the amounts reported in note 7.
(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 15.
(5) Includes commitments to vendors entered into in the ordinary course of business for goods and
services including office supplies, archival services, etc.