Note 7. Debt and Credit Facilities

Our debt is summarized in the table below:

(In millions)		December 31, 2016		January 2, 2016
Manufacturing group
4.625% due 2016	$	—	$	250
5.60% due 2017		350		350
Variable-rate note due 2018 (2.09% and 1.58%, respectively)		150		150
7.25% due 2019		250		250
Variable-rate note due 2019 (1.95% and 1.59%, respectively)		200		200
6.625% due 2020		184		222
3.65% due 2021		250		250
5.95% due 2021		250		250
4.30% due 2024		350		350
3.875% due 2025		350		350
4.00% due 2026		350		—
Other (weighted-average rate of 2.86% and 1.29%, respectively)		93		75

Total Manufacturing group debt	$	2,777	$	2,697
Less: Short-term debt and current portion of long-term debt		(363)		(262)

Total Long-term debt	$	2,414	$	2,435

Finance group
Fixed-rate notes due 2016-2017 (weighted-average rate of 4.59%) (a)	$	10	$	21
Variable-rate note due 2018 (weighted-average rate of 1.89% and 1.53%, respectively)		200		200
2.26% note due 2019		150		—
Fixed-rate notes due 2017-2025 (weighted-average rate of 2.87% and 2.79%, respectively) (a) (b)		202		300
Variable-rate notes due 2016-2025 (weighted-average rate of 1.97% and 1.54%, respectively) (a) (b)		42		52
Securitized debt (weighted-average rate of 1.71%)		—		41
6% Fixed-to-Floating Rate Junior Subordinated Notes		299		299

Total Finance group debt	$	903	$	913

(a)

Notes amortize on a quarterly or semi-annual basis.

(b)

Notes are secured by finance receivables as described in Note 3.

The following table shows required payments during the next five years on debt outstanding at December 31, 2016:

(In millions)		2017		2018		2019		2020		2021
Manufacturing group	$	363	$	157	$	457	$	195	$	507
Finance group		64		239		188		36		23

Total	$	427	$	396	$	645	$	231	$	530

On September 30, 2016, Textron entered into a senior unsecured revolving credit facility that expires in September 2021 for an aggregate principal amount of $1.0 billion, of which up to $100 million is available for the issuance of letters of credit. At December 31, 2016, there were no amounts borrowed against the facility and there were $11 million of letters of credit issued against it. This facility replaced the existing 5-year facility, which had no outstanding borrowings and was scheduled to expire in October 2018.

6% Fixed-to-Floating Rate Junior Subordinated Notes

The Finance group’s $299 million of 6% Fixed-to-Floating Rate Junior Subordinated Notes are unsecured and rank junior to all of its existing and future senior debt. The notes mature on February 15, 2067; however, we have the right to redeem the notes at par on or after February 15, 2017 and are obligated to redeem the notes beginning on February 15, 2042. Interest on the notes is fixed at 6% until February 15, 2017 and is variable at the three-month London Interbank Offered Rate + 1.735% thereafter.

Support Agreement

Under a Support Agreement, as amended in December 2015, Textron Inc. is required to ensure that TFC maintains fixed charge coverage of no less than 125% and consolidated shareholder’s equity of no less than $125 million. There were no cash contributions required to be paid to TFC in 2016, 2015 and 2014 to maintain compliance with the support agreement.