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Debt | 9 Months Ended
--- | ---
Sep. 30, 2015
Debt Disclosure [Abstract] |
Debt | Note 5 - Debt The amortized cost of debt outstanding at September 30, 2015 and December 31, 2014 was:
(Dollars in Millions) |  | Sep 30, 2015 |  | Dec 31, 2014
Senior Notes: |  |  |  |
6.00% Senior Notes due November 30, 2015 |  | $ | — |  |  | $ | 249.5 |
6.00% Senior Notes due May 15, 2017 |  | 358.9 |  |  | 358.5 |
4.35% Senior Notes due February 15, 2025 |  | 247.4 |  |  | — |
7.375% Subordinated Debentures due February 27, 2054 |  | 144.1 |  |  | 144.1 |
Total Debt Outstanding |  | $ | 750.4 |  |  | $ | 752.1 |
On June 2, 2015, Kemper amended its $225.0 million, unsecured, revolving credit agreement to, among other things, extend the expiration date to June 2, 2020. Prior to the amendment, the credit agreement was scheduled to expire on March 7, 2016. The credit agreement, as amended, provides for fixed and floating rate advances for periods up to six months at various interest rates. The credit agreement, as amended, 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, Trinity Universal Insurance Company (“Trinity”) and United Insurance Company of America (“United Insurance”). Proceeds from advances under the credit agreement, as amended, may be used for general corporate purposes, including repayment of existing indebtedness. There were no outstanding borrowings under the credit agreement, as amended, at either September 30, 2015 or December 31, 2014. Trinity and United Insurance are members of the Federal Home Loan Bank (“FHLB”) of Dallas and Chicago, respectively. As members, Trinity and United Insurance may obtain advances from the FHLB of Dallas and Chicago, respectively. Advances from the FHLB of Dallas and Chicago are subject to collateral requirements as specified in the respective agreements with Trinity and United Insurance. During the first nine months of 2015, Trinity borrowed and repaid $20.5 million under its agreement with the FHLB of Dallas. During the first nine months of 2015, United Insurance borrowed and repaid $21.0 million under its agreement with the FHLB of Chicago. There were no advances from the FHLB of Dallas or Chicago outstanding at either September 30, 2015 or December 31, 2014. On February 24, 2015, Kemper issued $250.0 million of its 4.35% senior notes due February 15, 2025 (the “2025 Senior Notes”). The net proceeds of the issuance were $247.3 million, net of discount and transaction costs, for an effective yield of 4.49%. The 2025 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 used the net proceeds from the sale of the 2025 Senior Notes, together with available cash, to redeem in full the $250.0 million outstanding principal amount of its 6.00% Senior Notes due November 30, 2015. Kemper recognized a loss of $9.1 million before income taxes in the first quarter of 2015 from the early redemption of these senior notes. Note 5 - Debt (Continued) Interest Expense, including facility fees, accretion of discount and amortization of issuance costs, for the nine and three months ended September 30, 2015 and 2014 was:
|  | Nine Months Ended |  | Three Months Ended
(Dollars in Millions) |  | Sep 30, 2015 |  | Sep 30, 2014 |  | Sep 30, 2015 |  | Sep 30, 2014
Notes Payable under Revolving Credit Agreement |  | $ | 0.6 |  |  | $ | 0.6 |  |  | $ | 0.2 |  |  | $ | 0.2 |
Federal Home Loan Bank of Dallas |  | — |  |  | — |  |  | — |  |  | — |
Federal Home Loan Bank of Chicago |  | — |  |  | — |  |  | — |  |  | — |
Senior Notes Payable: |  |  |  |  |  |  |  |
6.00% Senior Notes due November 30, 2015 |  | 3.7 |  |  | 11.6 |  |  | — |  |  | 3.9 |
6.00% Senior Notes due May 15, 2017 |  | 16.7 |  |  | 16.6 |  |  | 5.6 |  |  | 5.5 |
4.35% Senior Notes due February 15, 2025 |  | 6.7 |  |  | — |  |  | 2.8 |  |  | — |
7.375% Subordinated Debentures due February 27, 2054 |  | 8.3 |  |  | 6.6 |  |  | 2.8 |  |  | 2.8 |
Interest Expense before Capitalization of Interest |  | 36.0 |  |  | 35.4 |  |  | 11.4 |  |  | 12.4 |
Capitalization of Interest |  | (0.6 | ) |  | (0.8 | ) |  | (0.1 | ) |  | (0.3 | )
Total Interest Expense |  | $ | 35.4 |  |  | $ | 34.6 |  |  | $ | 11.3 |  |  | $ | 12.1 |
Interest paid, including facility fees, for the nine and three months ended September 30, 2015 and 2014 was:
|  | Nine Months Ended |  | Three Months Ended
(Dollars in Millions) |  | Sep 30, 2015 |  | Sep 30, 2014 |  | Sep 30, 2015 |  | Sep 30, 2014
Notes Payable under Revolving Credit Agreement |  | $ | 1.3 |  |  | $ | 0.5 |  |  | $ | 0.2 |  |  | $ | 0.2 |
Federal Home Loan Bank of Dallas |  | — |  |  | — |  |  | — |  |  | — |
Federal Home Loan Bank of Chicago |  | — |  |  | — |  |  | — |  |  | — |
Senior Notes Payable: |  |  |  |  |  |  |  |
6.00% Senior Notes due November 30, 2015 |  | 4.8 |  |  | 7.5 |  |  | — |  |  | — |
6.00% Senior Notes due May 15, 2017 |  | 10.8 |  |  | 10.8 |  |  | — |  |  | — |
4.35% Senior Notes due February 15, 2025 |  | 5.2 |  |  | — |  |  | 5.2 |  |  | — |
7.375% Subordinated Debentures due February 27, 2054 |  | 8.3 |  |  | 5.5 |  |  | 2.8 |  |  | 2.7 |
Total Interest Paid |  | $ | 30.4 |  |  | $ | 24.3 |  |  | $ | 8.2 |  |  | $ | 2.9 |

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- 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 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
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