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Jarden Corporation Annual Report 2013 51
Notes to Consolidated Financial Statements
Jarden Corporation Annual Report 2013 (Dollars in millions, except per share data and unless otherwise indicated)
The Company’s debt maturities for the ve years following December31, 2013 and thereafter are as follows:
Years Ending December31,
Amount
(Inmillions)
2014 $655.1
2015 320.4
2016 343.1
2017 665.3
2018 1,115.7
Thereafter 1,760.0
Total principal payments 4,859.6
Net discount and other (117.2)
Total $ 4,742.4
At December31, 2013 and 2012, unamortized deferred debt issue costs were $47.3 and $48.0, respectively. These costs are included in
“Other assets” on the consolidated balance sheets and are being amortized over the respective terms of the underlying debt.
During 2013, the Company recorded a loss on the extinguishment of debt of $25.9 related to the Tender Offer, the Redemption and the
Facility amendment in March 2013. This loss is primarily comprised of the tender and redemption premiums, the write-off of deferred
debt issuance costs and debt discounts and other transaction costs.
At December31, 2013 and 2012, the approximate fair market value of total debt is as follows:
(In millions) 2013 2012
Level 1 $1,589 $1,895
Level 2 3,344 2,076
 
Total $ 4,933 $3,971
 
10. Derivative Financial Instruments
From time to time, the Company enters into derivative transactions to hedge its exposures to interest rate, foreign currency rate and
commodity price uctuations. The Company does not enter into derivative transactions for trading purposes.
Interest Rate Contracts
The Company manages its xed and oating rate debt mix using interest rate swaps. The Company uses xed and oating rate swaps
to alter its exposure to the impact of changing interest rates on its consolidated results of operations and future cash outows for
interest. Floating rate swaps are used, depending on market conditions, to convert the xed rates of long-term debt into short-term
variable rates. Fixed rate swaps are used to reduce the Company’s risk of the possibility of increased interest costs. Interest rate swap
contracts are therefore used by the Company to separate interest rate risk management from the debt funding decision.
Cash Flow Hedges
During 2013, the Company entered into an aggregate $350 notional amount of interest rate swaps that exchange a variable rate of
interest (LIBOR) for an average xed rate of interest of approximately 1.9% over the term of the agreements, which mature through
June 2020. These swaps are forward-starting and are effective commencing December31, 2015. The Company has designated these
swaps as cash ow hedges of the interest rate risk attributable to forecasted variable interest (LIBOR) payments.
At December31, 2013, the Company had $850 notional amount outstanding in swap agreements, which includes $350 notional amount
of forward-starting swaps that become effective commencing December31, 2015, that exchange a variable rate of interest (LIBOR) for
xed interest rates over the terms of the agreements and are designated as cash ow hedges of the interest rate risk attributable to
forecasted variable interest payments and have maturity dates through June 2020. At December31, 2013, the weighted average xed
rate of interest on these swaps, excluding the forward-starting swaps, was approximately 1.3%. The effective portion of the after-tax fair
value gains or losses on these swaps is included as a component of AOCI.