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Debt | 12 Months Ended
--- | ---
Dec. 31, 2015
Debt Disclosure [Abstract] |
Debt | NOTE 7. DEBT Total amortized cost of debt outstanding at December 31, 2015 and 2014 was:
DOLLARS IN MILLIONS |  | 2015 |  | 2014
Senior Notes: |  |  |  |
6.00% Senior Notes due November 30, 2015 |  | $ | — |  |  | $ | 249.5 |
6.00% Senior Notes due May 15, 2017 |  | 359.1 |  |  | 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 |  | $ | 750.6 |  |  | $ | 752.1 |
NOTE 7. DEBT (Continued) Interest Expense, including facility fees, accretion of discount and amortization of issuance costs, for the years ended December 31, 2015, 2014 and 2013 was:
DOLLARS IN MILLIONS |  | 2015 |  | 2014 |  | 2013
Notes Payable under Revolving Credit Agreement |  | $ | 0.8 |  |  | $ | 0.8 |  |  | $ | 1.4 |
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 |  |  | 15.5 |  |  | 15.4 |
6.00% Senior Notes due May 15, 2017 |  | 22.2 |  |  | 22.2 |  |  | 22.2 |
4.35% Senior Notes due February 15, 2025 |  | 9.5 |  |  | — |  |  | — |
7.375% Subordinated Debentures due February 27, 2054 |  | 11.1 |  |  | 9.4 |  |  | — |
Mortgage Note Payable |  | — |  |  | — |  |  | 0.2 |
Interest Expense before Capitalization of Interest |  | 47.3 |  |  | 47.9 |  |  | 39.2 |
Capitalization of Interest |  | (0.8 | ) |  | (1.0 | ) |  | (0.9 | )
Total Interest Expense |  | $ | 46.5 |  |  | $ | 46.9 |  |  | $ | 38.3 |
Interest Paid, including facility fees, for the years ended December 31, 2015, 2014 and 2013 was:
DOLLARS IN MILLIONS |  | 2015 |  | 2014 |  | 2013
Notes Payable under Revolving Credit Agreement |  | $ | 1.4 |  |  | $ | 0.6 |  |  | $ | 0.8 |
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 |  |  | 15.0 |  |  | 15.0 |
6.00% Senior Notes due May 15, 2017 |  | 21.6 |  |  | 21.6 |  |  | 21.6 |
4.35% Senior Notes due February 15, 2025 |  | 5.2 |  |  | — |  |  | — |
7.375% Subordinated Debentures due February 27, 2054 |  | 11.1 |  |  | 8.5 |  |  | — |
Mortgage Note Payable |  | — |  |  | — |  |  | 0.3 |
Total Interest Paid |  | $ | 44.1 |  |  | $ | 45.7 |  |  | $ | 37.7 |
On June 2, 2015, Kemper amended and restated 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 and restated, provides for fixed and floating rate advances for periods up to six months at various interest rates. The credit agreement, as amended and restated, 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 and United Insurance. Proceeds from advances under the credit agreement, as amended and restated, may be used for general corporate purposes, including repayment of existing indebtedness. There were no outstanding borrowings under the credit agreement at either December 31, 2015 or December 31, 2014. Trinity and United Insurance are members of the FHLB of Dallas and Chicago, respectively. Effective December 31, 2013, Trinity and the FHLB of Dallas entered into agreements pursuant to which Trinity may obtain advances from the FHLB of Dallas. Effective March 18, 2014, United Insurance and the FHLB of Chicago entered into agreements pursuant to which United Insurance may obtain advances from the FHLB of Chicago. 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 2015, Trinity borrowed and repaid $77.5 million under its agreement with the FHLB of Dallas. During 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 December 31, 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 NOTE 7. DEBT (Continued) 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. On February 27, 2014, Kemper issued $150.0 million of its 7.375% subordinated debentures due February 27, 2054 (the “2054 Debentures”). The net proceeds of the issuance were $144.0 million, net of discount and transaction costs, for an effective yield of 7.69%. The subordinated debentures are unsecured and are subordinated and junior to the senior indebtedness of Kemper. Interest on the subordinated debentures is payable quarterly. As long as no event of default has occurred, Kemper may defer interest payments on the subordinated debentures for up to five consecutive years without giving rise to an event of default. During a deferral period, interest will continue to accrue at the stated interest rate compounded quarterly. Kemper is permitted to redeem some or all of the subordinated debentures on or after February 27, 2019, at a redemption price that is equal to their principal amount plus accrued and unpaid interest. Kemper is permitted to redeem the subordinated debentures in whole, but not in part, at any time prior to February 27, 2019, within 90 days of the occurrence of certain tax events or rating agency events, at specified redemption prices.

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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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