Long-Term Debt

The following table summarizes the carrying value of the Company’s long-term debt (in millions):



	September 29, 2018			December 31, 2017
Term Loan B	$	695		$	1,160
Term Loan A	608			679
Revolving Credit Facility	473			275
Receivables Financing Facility	136			135
Total debt	$	1,912		$	2,249
Less: Debt issuance costs	(5		)	(7		)
Less: Unamortized discounts	(7		)	(15		)
Less: Current portion of long-term debt	(71		)	(51		)
Total long-term debt	$	1,829		$	2,176

At September 29, 2018, the future maturities of debt, excluding debt discounts and issuance costs, are as follows (in millions):



2018	$	—
2019	153
2020	54
2021	1,705
2022	—
Thereafter	—
Total future maturities of long-term debt	$	1,912

The estimated fair value of the Company’s long-term debt approximated $1.9 billion at September 29, 2018 and $2.2 billion at December 31, 2017. These fair value amounts, developed based on inputs classified as Level 2 within the fair value hierarchy, represent the estimated value at which the Company’s lenders could trade its debt within the financial markets and does not represent the settlement value of these long-term debt liabilities to the Company. The fair value of the long-term debt will continue to vary each period based a number of factors including fluctuations in market interest rates, as well as changes to the Company’s credit ratings.

Credit Facilities

On May 31, 2018, the Company entered into Amendment No.1. to the Amended and Restated Credit Agreement (“Amendment No. 1”). Amendment No. 1 replaced the existing Term Loan A with a new Term Loan A (“Amended Term Loan A”) of $670 million and increased the existing revolving credit facility from $500 million to $800 million (“Revolving Credit Facility”). Additionally, Amendment No. 1 provides for the capacity to make Euro denominated draws on the Revolving Credit Facility. As part of the Amendment No. 1, the Company entered into a partial early debt termination of $300 million and repricing of Term Loan B. Amendment No. 1 lowered the index rate spread for LIBOR loans from LIBOR + 200 bp to LIBOR + 175 bp.

In accounting for the impact of Amendment No. 1, the Company applied the provisions of ASC Subtopic 470-50, Modifications and Extinguishments (“ASC 470-50”), which resulted in the second quarter results including approximately $6 million in non-cash accelerated amortization of debt issuance costs and approximately $1 million of one-time pretax charges related to third party fees associated with the amendments, which are reflected as a component of Interest expense, net within the Company’s Consolidated Statements of Operations.

In addition, the issuance of Amended Term Loan A and the increase to the Revolving Credit Facility resulted in $2 million of one-time third party fees for arranger, legal, and other services, which were capitalized and will be amortized over the term of the credit facilities.

As of September 29, 2018, the Term Loan A interest rate was 3.99%, and the Term Loan B interest rate was 4.06%. Borrowings under Term Loan A and B bear interest at a variable rate. Term Loan B borrowings are subject to a floor of 2.75%. Interest payments are payable monthly or quarterly on Term Loan A and quarterly on Term Loan B. The Company has entered into interest rate swaps to manage interest rate risk on Term Loan B. See Note 8, Derivative Instruments.

Amendment No. 1 also requires the Company to prepay certain amounts in the event of certain circumstances or transactions. The Company may make prepayments against the Term Loans, in whole or in part, without premium or penalty. Under Amendment No. 1, Term Loan A will mature on July 27, 2021 and Term Loan B will mature on October 27, 2021.

The Revolving Credit Facility is available for working capital and other general corporate purposes including letters of credit. As of September 29, 2018, the Company had issued letters of credit totaling $5 million, which reduced funds available for other borrowings under the agreement to $795 million. Borrowings bear interest at a variable rate plus an applicable margin. As of September 29, 2018, the Revolving Credit Facility had an average interest rate of 3.45%. Interest payments are payable monthly or quarterly for the Revolving Credit Facility. In August 2018, the Company made a Euro denominated draw on the Revolving Credit Facility. The Revolving Credit Facility will mature and the related commitments will terminate on July 27, 2021.

Receivables Financing Facility

In December 2017, the Company entered into a receivables financing facility with a financial institution that has a borrowing limit of up to $180 million. As collateral, the Company pledges a perfected first-priority security interest in its domestically originated accounts receivable. The Company has accounted for transactions under this receivable financing facility as secured borrowings.

At September 29, 2018, the Company’s Consolidated Balance Sheets included $427 million of receivables that were pledged under the receivables financing facility, of which $136 million had been borrowed. Borrowings bear interest at a variable rate plus an applicable margin. As of September 29, 2018, the receivables financing facility had an average interest rate of 3.07% and requires monthly interest payments. The receivables financing facility will mature on November 29, 2019.

Both the Revolving Credit Facility and receivables financing facility include terms and conditions that limit the incurrence of additional borrowings and require that certain financial ratios be maintained at designated levels.

On September 29, 2018, the Company was in compliance with all debt covenants.