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24 Jarden Corporation Annual Report 2014
The Company maintains a $500 million receivables purchase agreement (the “Securitization Facility”) that matures in October 2016. At
December31, 2014, the borrowing rate margin and the unused line fee on the Securitization Facility were 0.80% and 0.40%per annum,
respectively. At December31, 2014, the Securitization Facility had outstanding borrowings totaling $479 million.
At December31, 2014, net availability under the Revolver and the Securitization Facility was approximately $227 million, after
deducting approximately $44 million of outstanding standby and commercial letters of credit.
Certain foreign subsidiaries of the Company maintain working capital lines of credits with their respective local nancial institutions
for use in operating activities. At December31, 2014, the aggregate amount available under these lines of credit totaled approximately
$130 million.
The Company was not in default of any of its debt covenants at December31, 2014.
During 2014, 2013 and 2012, the Company repurchased approximately 5.2million, 8.4million and 32.3million shares, respectively,
of its common stock under the Stock Repurchase Program valued at $208 million, $250 million and $556 million, respectively. At
December31, 2014, approximately $292 million remains available under the Stock Repurchase Program..
Contractual Obligations and Commercial Commitments
The following table includes aggregate information about the Company’s contractual obligations as of December31, 2014 and the
periods in which payments are due. Certain of these amounts are not required to be included in its consolidated balance sheets:
Year(s)
(In millions) Total 1 2-3 4-5 After 5
Debt (1) $5,687.8 $652.0 $854.6 $2,027.9 $2,153.3
Operating leases 536.6 110.0 163.2 117.1 146.3
Unconditional purchase obligations 143.8 107.8 32.9 2.9 0.2
Other current and non-current obligations 23.7 19.5 1.0 1.0 2.2
Total $ 6,391.9 $889.3 $1,051.7 $2,148.9 $2,302.0
(1) These amounts reect scheduled debt principal payments and the expected future interest expense related to the debt at
December31, 2014 that carries a xed rate of interest. As of December31, 2014, approximately $2.3 billion of the Company’s debt
is considered xed-rate debt, by nature or through use of interest rate swaps. As of December31, 2014, approximately $2.8 billion
of the Company’s debt is considered variable-rate debt, by nature or through use of interest rate swaps with a weighted average
interest rate of approximately 3.3%. For further information regarding the Company’s debt and interest rate structure, see Note 9
and Note 10 to the consolidated nancial statements.
The table above does not reect tax reserves and accrued interest thereon of $145.3 million and $10.3 million, respectively, as the
Company cannot reasonably predict the timing of the settlement of the related tax positions beyond 2014. See Note 12 to the
consolidated nancial statements for additional information on the Company’s unrecognized tax benets at December31,2014.
Commercial commitments, such as standby and commercial letters of credit, are items that the Company could be obligated to pay in
the future and are also not included in the above table.
Risk Management
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.
Management’s Discussion and Analysis
Jarden Corporation Annual Report 2014