Travelers 2014 Annual Report Download - page 131

Table of Contents
be significant reporting lags between the occurrence of the policyholder event and the time it is actually reported to the insurer. The future cash
flows related to the items contained in the table below required estimation of both amount (including severity considerations) and timing. Amount
and timing are frequently estimated separately. An estimation of both amount and timing of future cash flows related to claims and claim
- related
payments has unavoidable estimation uncertainty.
The contractual obligations at December 31, 2014 were as follows:
130
Payments Due by Period
(in millions)
Total
Less than
1 Year
1 - 3 Years
3 - 5 Years
After
5 Years
Debt
Senior notes
$
5,900
$
400
$
850
$
1,000
$
3,650
Junior subordinated debentures
361
—
—
—
361
Total debt principal
6,261
400
850
1,000
4,011
Interest
5,207
365
647
519
3,676
Total long - term debt obligations(1)
11,468
765
1,497
1,519
7,687
Operating leases(2)
696
160
262
141
133
Purchase obligations
Information systems administration
and maintenance commitments(3)
167
77
83
6
1
Other purchase commitments(4)
161
41
51
37
32
Total purchase obligations
328
118
134
43
33
Long - term unfunded investment
commitments(5)
1,634
367
490
526
251
Estimated claims and claim - related
payments
Claims and claim adjustment expenses
(6)
47,646
9,911
10,732
5,731
21,272
Claims from large deductible policies
(7)
—
—
—
—
—
Loss - based assessments(8)
168
36
50
18
64
Payout from ceded funds withheld(9)
124
5
11
11
97
Total estimated claims and claim -
related payments
47,938
9,952
10,793
5,760
21,433
Liabilities related to unrecognized tax
benefits(10)
628
628
—
—
—
Total
$
62,692
$
11,990
$
13,176
$
7,989
$
29,537
(1) The Company's $107 million remaining aggregate principal amount of 6.25% fixed - to - floating rate debentures bear interest at
an annual rate of 6.25% from the date of issuance to, but excluding, March 15, 2017 and at a rate of three
- month LIBOR plus
2.215% thereafter. The table above includes interest payments through the scheduled maturity date of March 15, 2037.
Interest payments beginning March 15, 2017 through March 15, 2037 were calculated using the three
- month LIBOR rate as of
December 31, 2014.
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.