Allstate 2015 Annual Report Download - page 239

The Allstate Corporation 2015 Annual Report 233
upon approval of existing or replacement lenders. This facility contains an increase provision that would allow up to an
additional $500 million of borrowing. This facility has a financial covenant requiring the Company not to exceed a 37.5%
debt to capitalization ratio as defined in the agreement. Although the right to borrow under the facility is not subject to a
minimum rating requirement, the costs of maintaining the facility and borrowing under it are based on the ratings of the
Company’s senior unsecured, unguaranteed long-term debt. The total amount outstanding at any point in time under the
combination of the commercial paper program and the credit facility cannot exceed the amount that can be borrowed
under the credit facility. No amounts were outstanding under the credit facility as of December31, 2015 or 2014. The
Company had no commercial paper outstanding as of December31, 2015 or 2014.
The Company paid $289 million, $332 million and $361 million of interest on debt in 2015, 2014 and 2013, respectively.
The Company has $107 million of investment-related debt that is reported in other liabilities and accrued expenses
as of December 31, 2015, including a commitment to fund a limited partnership of $89 million and $18 million of debt
related to other investments. The Company has an outstanding line of credit to fund the limited partnership.
During 2015, the Company filed a universal shelf registration statement with the Securities and Exchange Commission
(“SEC”) that expires in 2018. The registration statement covers an unspecified amount of securities and can be used
to issue debt securities, common stock, preferred stock, depositary shares, warrants, stock purchase contracts, stock
purchase units and securities of trust subsidiaries.
Common stock
The Company had 900 million shares of issued common stock of which 381 million shares were outstanding and 519
million shares were held in treasury as of December31, 2015. In 2015, the Company reacquired 43 million shares at an
average cost of $65.55 and reissued 6 million net shares under equity incentive plans.
Preferred stock
The following table summarizes the Company’s outstanding preferred stock as of December31, 2015. All represent
noncumulative perpetual preferred stock with a $1.00 par value per share and a liquidation preference of $25,000
per share.
($ in millions, except
per share data) Dividend Per Share
Aggregate Dividend
Payment
Shares
Aggregate
liquidation
preference
Dividend
rate 2015 2014 2013 2015 2014 2013
Series A 11,500 $ 287.5 5.625%$ 1.41 $ 1.41 $ 0.83 $ 16 $ 16 $ 9
Series C 15,400 385.0 6.750%1.69 1.69 0.49 26 26 8
Series D 5,400 135.0 6.625%1.66 1.79 — 9 10 —
Series E 29,900 747.5 6.625%1.66 1.44 — 49 43 —
Series F 10,000 250.0 6.250%1.56 0.92 — 16 9 —
Total 72,200 $ 1,805 $ 116 $ 104 $ 17
In March 2014, the Company issued 29,900 shares of 6.625% Noncumulative Perpetual Preferred Stock, SeriesE, for
gross proceeds of $747.5 million. In June 2014, the Company issued 10,000 shares of 6.25% Noncumulative Perpetual
Preferred Stock, SeriesF, for gross proceeds of $250 million. The proceeds of both issuances were used for general
corporate purposes.
The preferred stock ranks senior to the Company’s common stock with respect to the payment of dividends and
liquidation rights. The Company will pay dividends on the preferred stock on a noncumulative basis only when, as and
if declared by the Company’s board of directors (or a duly authorized committee of the board) and to the extent that
the Company has legally available funds to pay dividends. If dividends are declared on the preferred stock, they will be
payable quarterly in arrears at an annual fixed rate. Dividends on the preferred stock are not cumulative. Accordingly,
in the event dividends are not declared on the preferred stock for payment on any dividend payment date, then those
dividends will cease to be payable. If the Company has not declared a dividend before the dividend payment date for any
dividend period, the Company has no obligation to pay dividends for that dividend period, whether or not dividends are
declared for any future dividend period. No dividends may be paid or declared on the Company’s common stock and no
shares of the Company’s common stock may be repurchased unless the full dividends for the latest completed dividend
period on the preferred stock have been declared and paid or provided for.