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annually, and has a five-year maturity. The second series, which totaled $450 million, bears interest at a fixed rate of
3.25% per annum, payable semi-annually, and has a 10-year maturity. We have entered into cross-currency swaps that
convert the U.S. dollar-denominated principal and interest on the senior notes into yen-denominated obligations which
results in lower nominal net interest rates on the debt. By entering into these cross-currency swaps, we economically
converted our $550 million liability into a 67.0 billion yen liability and reduced the interest rate on this debt from 2.40% in
dollars to .24% in yen, and we economically converted our $450 million liability into a 55.0 billion yen liability and reduced
the interest rate on this debt from 3.25% in dollars to .82% in yen.
In November 2014, the Parent Company issued $750 million of senior notes through a U.S. public debt offering. The
notes bear interest at a fixed rate of 3.625% per annum, payable semi-annually, and have a 10-year maturity. These notes
are redeemable at our option in whole at any time or in part from time to time at a redemption price equal to the greater of:
(i) the aggregate principal amount of the notes to be redeemed or (ii) the amount equal to the sum of the present values of
the remaining scheduled payments for principal of and interest on the notes to be redeemed, not including any portion of
the payments of interest accrued as of such redemption date, discounted to such redemption date on a semiannual basis
at the treasury rate plus 20 basis points, plus in each case, accrued and unpaid interest on the principal amount of the
notes to be redeemed to, but excluding, such redemption date. We entered into cross-currency interest rate swaps to
reduce interest expense by converting the U.S. dollar-denominated principal and interest on the senior notes we issued
into yen-denominated obligations. By entering into the swaps, we economically converted our $750 million liability into an
85.3 billion yen liability and reduced the interest rate on this debt from 3.625% in dollars to 1.00% in yen.
In June 2013, the Parent Company issued $700 million of senior notes through a U.S. public debt offering. The notes
bear interest at a fixed rate of 3.625% per annum, payable semi-annually, and have a 10-year maturity. These notes are
redeemable at our option in whole at any time or in part from time to time at a redemption price equal to the greater of: (i)
the aggregate principal amount of the notes to be redeemed or (ii) the amount equal to the sum of the present values of
the remaining scheduled payments for principal of and interest on the notes to be redeemed, not including any portion of
the payments of interest accrued as of such redemption date, discounted to such redemption date on a semiannual basis
at the treasury rate plus 20 basis points, plus in each case, accrued and unpaid interest on the principal amount of the
notes to be redeemed to, but excluding, such redemption date. We entered into cross-currency interest rate swaps to
reduce interest expense by converting the U.S. dollar-denominated principal and interest on the senior notes we issued
into yen-denominated obligations. By entering into these swaps, we economically converted our $700 million liability into a
69.8 billion yen liability and reduced the interest rate on this debt from 3.625% in dollars to 1.50% in yen.
In September 2012, the Parent Company issued $450 million of subordinated debentures through a U.S. public debt
offering. The debentures bear interest at a fixed rate of 5.50% per annum, payable quarterly, and have a 40-year maturity.
In five years, on or after September 26, 2017, we may redeem the debentures, in whole or in part, at their principal
amount plus accrued and unpaid interest to, but excluding, the date of redemption; provided that if the debentures are not
redeemed in whole, at least $25 million aggregate principal amount of the debentures must remain outstanding after
giving effect to such redemption. The debentures may only be redeemed prior to September 26, 2017, in whole but not in
part, upon the occurrence of certain tax events or certain rating agency events, as specified in the indenture governing the
terms of the debentures. We entered into cross-currency interest rate swaps to convert the U.S. dollar-denominated
principal and interest on the subordinated debentures we issued into yen-denominated obligations. By entering into these
swaps, we economically converted our $450 million liability into a 35.3 billion yen liability and reduced the interest rate on
this debt from 5.50% in dollars to 4.41% in yen. The swaps will expire after the initial five-year non-callable period for the
debentures. In October 2012, the underwriters exercised their option, pursuant to the underwriting agreement, to
purchase an additional $50 million principal amount of the debentures discussed above. We entered into a cross-currency
interest rate swap to economically convert this $50 million liability into a 3.9 billion yen liability and reduce the interest rate
from 5.50% in dollars to 4.42% in yen. The swap will expire after the initial five-year non-callable period for the
debentures.
In February 2012, the Parent Company issued two series of senior notes totaling $750 million through a U.S. public
debt offering. The first series, which totaled $400 million, bears interest at a fixed rate of 2.65% per annum, payable
semiannually, and has a five-year maturity. The second series, which totaled $350 million, bears interest at a fixed rate of
4.00% per annum, payable semiannually, and has a 10-year maturity. These notes are redeemable at our option in whole
at any time or in part from time to time at a redemption price equal to the greater of: (i) the principal amount of the notes or
(ii) the present value of the remaining scheduled payments of principal and interest to be redeemed, discounted to the
redemption date, plus accrued and unpaid interest. We entered into cross-currency interest rate swaps to reduce interest
expense by converting the U.S. dollar-denominated principal and interest on the senior notes we issued into yen-
denominated obligations. By entering into these swaps, we economically converted our $400 million liability into a 30.9
billion yen liability and reduced the interest rate on this debt from 2.65% in dollars to 1.22% in yen. We also economically
converted our $350 million liability into a 27.0 billion yen liability and reduced the interest rate on this debt from 4.00% in
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