Travelers 2008 Annual Report Download - page 132

The contractual obligations related to debt, operating leases, purchase obligations, long-term
unfunded investment commitments, estimated claims and claims related payments (gross of the
estimated reinsurance recoveries) and liabilities related to unrecognized tax benefits, at December 31,
2008 were as follows:
Payments Due by Period Less than After
(in millions) Total 1 Year 1-3 Years 3-5 Years 5 Years
Debt(1)
Medium-term notes ...................... $21$—$21$—$—
Senior notes ............................ 4,650 — 250 750 3,650
Junior subordinated debentures .............. 1,254 — — — 1,254
Zero coupon convertible notes .............. 141 141 — — —
Private placement notes ................... 15 213——
Total debt principal ...................... 6,081 143 284 750 4,904
Interest ............................... 5,384 371 708 662 3,643
Total long-term debt obligations ............ 11,465 514 992 1,412 8,547
Operating leases(2) ........................ 802 180 289 173 160
Purchase obligations
Information systems administration and
maintenance commitments(3) .............. 237 77 94 66 —
Reinsurance brokerage commitment(4) ........ 80 20 40 20 —
Other purchase commitments(5) ............. 110 61 9 5 35
Total purchase obligations ................. 427 158 143 91 35
Long-term unfunded investment commitments (6) .. 1,562 374 505 454 229
Estimated claims and claims related payments
Claims and claim adjustment expenses(7) ....... 55,735 11,862 15,015 9,103 19,755
Claims from large deductible policies(8) ........ —————
Loss-based assessments(9) .................. 231 32 52 25 122
Reinsurance contracts accounted for as
deposits(10) .......................... 49 49 — — —
Payout from ceded funds withheld(11) ......... 283 53 139 9 82
Total estimated claims and claims related
payments ............................ 56,298 11,996 15,206 9,137 19,959
Liabilities related to unrecognized tax benefits(12) .1,280 752 528 — —
Total ............................... $71,834 $13,974 $17,663 $11,267 $28,930
(1) See note 8 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 debt obligations will not agree with the amounts reported in
note 8.
(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.
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