Travelers 2010 Annual Report Download - page 132

estimated reinsurance recoveries) and liabilities related to unrecognized tax benefits, at December 31,
2010 were as follows:
Payments Due by Period Less than After
(in millions) Total 1 Year 1-3 Years 3-5 Years 5 Years
Debt
Senior notes ............................ $ 6,150 $ — $ 750 $ 400 $ 5,000
Junior subordinated debentures .............. 369 — — — 369
Private placement notes ................... 99———
Total debt principal ...................... 6,528 9 750 400 5,369
Interest ............................... 5,944 382 730 686 4,146
Total long-term debt obligations(1) .......... 12,472 391 1,480 1,086 9,515
Operating leases(2) ........................ 613 159 236 143 75
Purchase obligations
Information systems administration and
maintenance commitments(3) .............. 88 58 30 — —
Reinsurance brokerage commitment(4) ........ 22 20 2 — —
Other purchase commitments(5) ............. 89 25 27 4 33
Total purchase obligations .................. 199 103 59 4 33
Long-term unfunded investment commitments(6) ... 1,262 278 363 423 198
Estimated claims and claim-related payments
Claims and claim adjustment expenses(7) ....... 49,008 10,849 13,033 7,732 17,394
Claims from large deductible policies(8) ........ ———— —
Loss-based assessments(9) .................. 199 35 46 20 98
Reinsurance contracts accounted for as
deposits(10) .......................... 11———
Payout from ceded funds withheld(11) ......... 306 29 131 33 113
Total estimated claims and claim-related
payments ............................ 49,514 10,914 13,210 7,785 17,605
Liabilities related to unrecognized tax benefits(12) .. 1,122 1,122 — — —
Total ................................ $65,182 $12,967 $15,348 $9,441 $27,426
(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.
(4) In connection with the sale of its insurance brokerage operations, the Company committed to
acquire brokerage services from the buyer through May 16, 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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