Long-Term Debt

The following table shows the carrying value of the Company’s debt (in millions):



	March 30, 2019			December 31, 2018
Term Loan A	$	608		$	608
Term Loan B	445			445
Revolving Credit Facility	578			408
Receivables Financing Facility	113			139
Total debt	$	1,744		$	1,600
Less: Debt issuance costs	(4		)	(5		)
Less: Unamortized discounts	(4		)	(4		)
Less: Current portion of long-term debt	(131		)	(157		)
Total long-term debt	$	1,605		$	1,434

As of March 30, 2019, the future maturities of debt, excluding debt discounts and issuance costs, were as follows (in millions):



2019	$	131
2020	54
2021	1,559
2022	—
2023	—
Thereafter	—
Total future maturities of long-term debt	$	1,744

All borrowings as of March 30, 2019 were denominated in U.S. Dollars, except for €92 million under the Revolving Credit Facility that was borrowed in Euros.

The estimated fair value of the Company’s long-term debt approximated $1.7 billion and $1.6 billion as of March 30, 2019 and December 31, 2018, respectively. 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 on a number of factors including fluctuations in market interest rates, as well as changes to the Company’s credit ratings.

Credit Facilities

The Company has entered into a credit agreement that provides for a Term Loan A, Term Loan B and Revolving Credit Facility.

As of March 30, 2019, the Term Loan A interest rate was 3.99%, and the Term Loan B interest rate was 4.24%. Borrowings under the Terms loans bear interest at a variable rate plus an applicable margin. Interest payments are made monthly.

Under the credit agreement, the Company is required to prepay certain outstanding 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. Term Loan A will mature on July 27, 2021 and Term Loan B will mature on October 27, 2021. The remaining principal on Term Loan A is due in quarterly installments starting in the third quarter of 2019, with the majority due upon maturity. All remaining principal on Term Loan B is due upon maturity.

The Revolving Credit Facility is available for working capital and other general corporate purposes including letters of credit. As of March 30, 2019, the Company had letters of credit totaling $5 million, which reduced funds available for borrowings under the agreement from $800 million to $795 million. Borrowings bear interest at a variable rate plus an applicable margin. As of March 30, 2019, the Revolving Credit Facility had an average interest rate of 3.56%. Interest payments are made monthly. The Revolving Credit Facility will mature, and the related commitments will terminate on July 27, 2021. All remaining principal is due upon maturity.

Receivables Financing Facility

In December 2017, the Company entered 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 the Receivables Financing Facility as secured borrowings.

As of March 30, 2019, the Company’s Consolidated Balance Sheets included $449 million of receivables that were pledged under the receivables financing facility, of which $113 million had been borrowed against. Borrowings under the Receivables Financing Facility bear interest at a variable rate plus an applicable margin. As of March 30, 2019, the Receivables Financing Facility had an average interest rate of 3.33% and requires monthly interest payments. The Receivables Financing Facility will mature on November 29, 2019. Accordingly, amounts borrowed as of March 30, 2019 are included in Current portion of long-term debt on the Company’s Consolidated Balance Sheets.

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.

The Company uses interest rate swaps to manage the interest rate risk associated with its debt. See 7, Derivative Instruments for further information.

As of March 30, 2019, the Company was in compliance with all debt covenants.