XML 136 R13.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Notes Payable | 12 Months Ended
--- | ---
Dec. 31, 2013
Debt Disclosure [Abstract] |
Notes Payable | NOTE 6. NOTES PAYABLE Total amortized cost of debt outstanding at December 31, 2013 and 2012 was:
DOLLARS IN MILLIONS |  | 2013 |  | 2012
Senior Notes: |  |  |  |
6.00% Senior Notes due May 15, 2017 |  | $ | 357.9 |  |  | $ | 357.3 |
6.00% Senior Notes due November 30, 2015 |  | 249.0 |  |  | 248.6 |
Mortgage Note Payable due September 1, 2013 |  | — |  |  | 5.5 |
Total Notes Payable |  | $ | 606.9 |  |  | $ | 611.4 |
NOTE 6. NOTES PAYABLE (Continued) Interest Expense, including facility fees, accretion of discount and write-off of unamortized credit agreement issuance costs for the years ended December 31, 2013, 2012 and 2011 was:
DOLLARS IN MILLIONS |  | 2013 |  | 2012 |  | 2011
Notes Payable under Revolving Credit Agreement |  | $ | 1.4 |  |  | $ | 1.9 |  |  | $ | 2.0 |
Senior Notes Payable: |  |  |  |  |  |
6.00% Senior Notes due May 15, 2017 |  | 22.2 |  |  | 22.1 |  |  | 22.0 |
6.00% Senior Notes due November 30, 2015 |  | 15.4 |  |  | 15.4 |  |  | 15.4 |
Mortgage Note Payable |  | 0.2 |  |  | 0.4 |  |  | 0.4 |
Interest Expense before Capitalization of Interest |  | 39.2 |  |  | 39.8 |  |  | 39.8 |
Capitalization of Interest |  | (0.9 | ) |  | (1.8 | ) |  | (2.5 | )
Total Interest Expense |  | $ | 38.3 |  |  | $ | 38.0 |  |  | $ | 37.3 |
Interest Paid on Notes Payable, including facility fees, for the years ended December 31, 2013, 2012 and 2011 was:
DOLLARS IN MILLIONS |  | 2013 |  | 2012 |  | 2011
Notes Payable under Revolving Credit Agreement |  | $ | 0.8 |  |  | $ | 2.3 |  |  | $ | 1.2 |
Senior Notes Payable: |  |  |  |  |  |
6.00% Senior Notes due May 15, 2017 |  | 21.6 |  |  | 21.6 |  |  | 21.6 |
6.00% Senior Notes due November 30, 2015 |  | 15.0 |  |  | 15.0 |  |  | 15.2 |
Mortgage Note Payable |  | 0.3 |  |  | 0.4 |  |  | 0.4 |
Total Interest Paid |  | $ | 37.7 |  |  | $ | 39.3 |  |  | $ | 38.4 |
On March 7, 2012, Kemper entered into the 2016 Credit Agreement, a four-year, $325.0 million, unsecured, revolving credit agreement, expiring March 7, 2016, with a group of financial institutions. Effective December 31, 2013, Kemper amended the 2016 Credit Agreement to, among other things, reduce the amount of the aggregate commitments under the 2016 Credit Agreement by $100.0 million, bringing the amount of aggregate commitments to $225.0 million, and to increase the amount of indebtedness that may be incurred and outstanding in the aggregate at any time in connection with borrowings from the FHLB or issuances of surplus notes by $150.0 million, to $250.0 million, provided that the aggregate indebtedness incurred and outstanding in connection with issuances of surplus notes may not exceed $100.0 million at any one time. The action resulted from the completion in December 2013 of a process initiated by Kemper’s subsidiaries, United Insurance and Trinity, to become members of the FHLBs of Chicago and Dallas, respectively. The FHLB memberships provide United Insurance and Trinity with access to additional sources of liquidity and consequently reduce the need for such liquidity at the parent company level. The 2016 Credit Agreement replaced Kemper’s Former Credit Agreement, a $245.0 million, unsecured, revolving credit agreement which was scheduled to expire on October 30, 2012 and was terminated on March 7, 2012. There were no borrowings under the Former Credit Agreement at either December 31, 2011 or at its termination. The 2016 Credit Agreement provides for fixed and floating rate advances for periods up to six months at various interest rates. The 2016 Credit Agreement contains various financial covenants, including limits on total debt to total capitalization, consolidated net worth and minimum risk-based capital ratios for Kemper’s largest insurance subsidiaries, United Insurance and Trinity. Proceeds from advances under the 2016 Credit Agreement may be used for general corporate purposes, including repayment of existing indebtedness. There were no outstanding borrowings under the 2016 Credit Agreement at December 31, 2013, and accordingly, $225.0 million was available for future borrowings. In connection with the finalization of their FHLB memberships, United Insurance and Trinity purchased capital stock in the FHLBs of Chicago and Dallas, respectively. In addition, to complete Trinity’s membership in the FHLB of Dallas, which became effective as of December 31, 2013, Trinity and the FHLB of Dallas entered into agreements pursuant to which Trinity may obtain advances from the FHLB of Dallas. The specific terms of each advance, including the amount and rate of interest, will be specified in a written or electronic confirmation of advance. The amount of advances that may be obtained by Trinity will be determined as of any particular date based on a multiple of the amount of capital stock in the FHLB of Dallas that has been purchased by Trinity as of such date, as determined in accordance with the policies and procedures for members of the NOTE 6. NOTES PAYABLE (Continued) FHLB of Dallas, subject to any applicable limitations under the 2016 Credit Agreement. Advances are subject to collateral requirements as specified in the agreements. There were no advances from the FHLB of Dallas outstanding at December 31, 2013. In 2011, Kemper borrowed and repaid $95.0 million under the Former Credit Agreement. Kemper had no outstanding advances under the Former Credit Agreement at December 31, 2011. In 2010, Kemper issued $250 million of its 6.00% senior notes due November 30, 2015. The 2015 Senior Notes are unsecured and may be redeemed in whole at any time or in part from time to time at Kemper’s option at specified redemption prices. Kemper issued the 2015 Senior Notes for proceeds of $247.8 million, net of transaction costs, for an effective yield of 6.21%. In 2007, Kemper issued $360 million of its 6.00% senior notes due May 15, 2017. The 2017 Senior Notes are unsecured and may be redeemed in whole at any time or in part from time to time at Kemper’s option at specified redemption prices. Kemper issued the 2017 Senior Notes for proceeds of $354.8 million, net of transaction costs, for an effective yield of 6.19%.

X
- Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration