Travelers 2007 Annual Report Download - page 125

Less
Payments Due by Period than 1-3 3-5 After 5
(in millions) Total 1 Year Years Years Years
Debt(1)
Medium term notes ....................... $ 170 $ 149 $ 21 $ — $ —
Senior notes ............................ 4,550 400 250 250 3,650
Junior subordinated debentures .............. 1,254 — — — 1,254
Zero coupon convertible notes ............... 141 — 141 — —
Private placement notes .................... 18 3 4 11 —
Total debt principal ....................... 6,133 552 416 261 4,904
Interest ............................... 5,467 359 672 631 3,805
Total long-term debt obligations ............ 11,600 911 1,088 892 8,709
Operating leases(2) ........................ 883 203 313 174 193
Purchase obligations
Information systems administration and
maintenance commitments(3) .............. 244 112 95 37 —
Reinsurance brokerage commitment(4) ......... 100 20 40 40 —
Other purchase commitments(5) ............. 80 27 11 4 38
Total purchase obligations .................. 424 159 146 81 38
Long-term unfunded investment commitments(6) ... 1,598 396 552 409 241
Estimated claims and claims related payments
Claims and claim adjustment expenses(7) ....... 58,750 12,580 16,244 9,780 20,146
Claims from large deductible policies(8) ........ —————
Loss-based assessments(9) .................. 221 30 50 24 117
Reinsurance contracts accounted for as
deposits(10) ........................... 189 122 65 2 —
Payout from ceded funds withheld(11) ......... 363 158 110 37 58
Total estimated claims and claims related
payments ............................. 59,523 12,890 16,469 9,843 20,321
Liabilities related to unrecognized tax benefits(12) .. 268 — 268 — —
Total ................................ $74,296 $14,559 $18,836 $11,399 $29,502
(1) See note 7 of notes to the Company’s consolidated financial statements for a further discussion of
outstanding indebtedness. 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 through 2012. See note 15 of notes to the Company’s
consolidated financial statements.
(5) Includes commitments to vendors entered into in the ordinary course of business for goods and
services including office supplies, archival services, etc.
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