Travelers 2015 Annual Report Download - page 127

The contractual obligations at December 31, 2015 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 .......................... $ 5,900 $ 400 $ 950 $1,000 $ 3,550
Junior subordinated debentures ............ 361 — — — 361
Total debt principal ..................... 6,261 400 950 1,000 3,911
Interest ............................. 5,365 348 625 510 3,882
Total long-term debt obligations(1) ........ 11,626 748 1,575 1,510 7,793
Operating leases(2) ...................... 654 159 241 140 114
Purchase obligations
Information systems administration and
maintenance commitments(3) ............ 103 54 36 12 1
Other purchase commitments(4) ........... 144 45 52 26 21
Total purchase obligations ................ 247 99 88 38 22
Long-term unfunded investment commitments(5) .1,711 383 512 554 262
Estimated claims and claim-related payments
Claims and claim adjustment expenses(6) ..... 46,157 9,540 10,251 5,539 20,827
Claims from large deductible policies(7) ...... —— — — —
Loss-based assessments(8) ................ 168 37 50 18 63
Reinsurance contracts accounted for as
deposits(9) ......................... 2— 2 — —
Payout from ceded funds withheld(10) ....... 119 4 10 9 96
Total estimated claims and claim-related
payments ........................... 46,446 9,581 10,313 5,566 20,986
Liabilities related to unrecognized tax
benefits(11) .......................... 296 — 296 — —
Total .............................. $60,980 $10,970 $13,025 $7,808 $29,177
(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, 2015.
See note 8 of notes to the consolidated financial statements herein 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. Future sublease rental income aggregating approximately $6 million will
partially offset these commitments.
(3) Includes agreements with vendors to purchase system software administration and maintenance
services.
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