Sunbeam 2012 Annual Report Download - page 53

Jarden Corporation Annual Report 2012 51
Notes to Consolidated Financial Statements
Jarden Corporation Annual Report 2012 (Dollars in millions, except per share data and unless otherwise indicated)
Years Ending December 31,
Amount
(in millions)
2013 $ 504.7
2014 146.9
2015 297.6
2016 392.2
2017 657.1
Thereafter 1,899.0
Total principal payments 3,897.5
Net discount and other (99.4)
Total $ 3,798.1
At December 31, 2012 and 2011, unamortized deferred debt issue costs were $48.0 and $40.7, 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.
At December 31, 2012 and 2011, the approximate fair market value of total debt is as follows:
exceeding certain agreed upon capital expenditures, creating or suffering liens, completing certain mergers, consolidations and
sales of assets, acquisitions, declaring dividends to third parties, redeeming or prepaying other debt, and certain transactions with
affiliates. The Facility also includes financial covenants that require the Company to maintain certain total leverage and interest
coverage ratios.
The Facility contains a covenant that restricts the Company and its subsidiaries from making certain “restricted payments” (any
dividend or other distribution, whether in cash, securities or other property, with respect to any stock or stock equivalents of the
Company or any subsidiary), except that:
• the Company may declare and make dividend payments or other distributions payable in common stock;
• the Company may repurchase shares of its own stock (provided certain financial and other conditions are met); and
• the Company may make restricted payments during any fiscal year not otherwise permitted, provided that certain financial
and other conditions are met.
The Facility and the indentures related to the Senior Notes and the Senior Subordinated Notes (the “Indentures”) contain cross-
default provisions pursuant to which a default in respect to certain of the Company’s other indebtedness could trigger a default
by the Company under the Facility and the Indentures. If the Company defaults under the covenants (including the cross-default
provisions), the Company’s lenders could foreclose on their security interest in the Company’s assets, which may have a material
adverse effect on the consolidated financial condition, results of operations or cash flows of the Company.
The Company’s obligations under the Facility, Senior Subordinated Notes, Senior Notes and Convertible Notes are guaranteed, on
a joint and several basis, by certain of its domestic subsidiaries, all of which are directly or indirectly wholly-owned by the Company
(see Note 19).
The Company’s debt maturities for the five years following December 31, 2012 and thereafter are as follows:
(In millions) 2012 2011
Level 1 1,895 1,801
Level 2 2,076 1,444
Total $ 3,971 $ 3,245
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 fluctuations. The Company does not enter into derivative transactions for trading purposes.
Interest Rate Contracts
The Company manages its fixed and floating rate debt mix using interest rate swaps. The Company uses fixed and floating rate
swaps to alter its exposure to the impact of changing interest rates on its consolidated results of operations and future cash outflows
for interest. Floating rate swaps are used, depending on market conditions, to convert the fixed 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.