Note 8. Short And Long-Term Debt Short and Long-Term Debt (Tables)

12 Months Ended

Dec. 31, 2016

Total indebtedness is as follows:



	December 31,
	2016		2015
Senior Secured Credit Facility:
Revolving Credit Facility	$	200	$	200
Term Loan B	1,069		1,839
Term Loan A Facility:
Term Loan A	411		433
Term Loan A-1	347		—
3.375% Senior Notes	—		499
4.50% Senior Notes	439		434
5.25% Senior Notes	545		297
4.875% Senior Notes	496		—
Total Short-Term & Long-Term Debt	$	3,507	$	3,702
Securitization obligations:
Apple Ridge Funding LLC	$	192	$	238
Cartus Financing Limited	13		9
Total securitization obligations	$	205	$	247

Schedule of Debt

As of December 31, 2016, the Company’s borrowing arrangements were as follows:



	Interest Rate	Expiration Date	Principal Amount		Unamortized Discount and Debt Issuance Costs		Net Amount
Senior Secured Credit Facility:
Revolving Credit Facility(1)	(2)	October 2020	$	200	$ *		$	200
Term Loan B	(3)	July 2022	1,094		25		1,069
Term Loan A Facility:
Term Loan A	(4)	October 2020	413		2		411
Term Loan A-1	(5)	July 2021	351		4		347
Senior Notes	4.50%	April 2019	450		11		439
Senior Notes	5.25%	December 2021	550		5		545
Senior Notes	4.875%	June 2023	500		4		496
Securitization obligations:(6)
Apple Ridge Funding LLC (7)		June 2017	192		*		192
Cartus Financing Limited (8)		August 2017	13		*		13
Total (9)			$	3,763	$	51	$	3,712

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*	The debt issuance costs related to our Revolving Credit Facility and securitization obligations are classified as a deferred financing asset within other assets.

(1)

As of December 31, 2016, the Company had $815 million of borrowing capacity under its Revolving Credit Facility, leaving $615 million of available capacity. The revolving credit facility expires in October 2020, but is classified on the balance sheet as current due to the revolving nature of the facility. See Note 20, "Subsequent Events" for a description of the January 2017 increase of the borrowing capacity under its Revolving Credit Facility. On February 21, 2017, the Company had $200 million outstanding borrowings on the Revolving Credit Facility, leaving $850 million of available capacity.

(2)

Interest rates with respect to revolving loans under the Senior Secured Credit Facility at December 31, 2016 are based on, at the Company's option, (a) adjusted LIBOR plus an additional margin or (b) ABR plus an additional margin, in each case subject to adjustment based on the then current senior secured leverage ratio. Based on the previous quarter senior secured leverage ratio, the LIBOR margin was 2.00% and the ABR margin was 1.00% for the three months ended December 31, 2016.

(3)

The Term Loan B provides for quarterly amortization payments totaling 1% per annum of the original principal amount. The interest rate with respect to term loans under the Term Loan B is based on, at the Company’s option, (a) adjusted LIBOR plus 3.00% (with a LIBOR floor of 0.75%) or (b) JPMorgan Chase Bank, N.A.’s prime rate ("ABR") plus 2.00% (with an ABR floor of 1.75%). See Note 20, "Subsequent Events" for a description of the January 2017 refinancing of the Term Loan B.

(4)

The Term Loan A provides for quarterly amortization payments, which commenced March 31, 2016, totaling per annum 5%, 5%, 7.5%, 10.0% and 12.5% of the original principal amount of the Term Loan A in 2016, 2017, 2018, 2019 and 2020, respectively. The interest rates with respect to term loans under the Term Loan A are based on, at the Company's option, (a) adjusted LIBOR plus an additional margin or (b) ABR plus an additional margin, in each case subject to adjustment based on the then current senior secured leverage ratio. Based on the previous quarter senior secured leverage ratio, the LIBOR margin was 2.00% and the ABR margin was 1.00% for the three months ended December 31, 2016.

(5)

The Term Loan A-1 provides for quarterly amortization payments, which commenced on September 30, 2016, totaling per annum 2.5%, 2.5%, 5%, 7.5% and 10.0% of the original principal amount of the Term Loan A-1, with the last amortization payment made on June 30, 2021. The interest rates with respect to term loans under the Term Loan A-1 are based on, at the Company's option, (a) adjusted LIBOR plus an additional margin or (b) ABR plus an additional margin, in each case subject to adjustment based on the then current senior secured leverage ratio. Based on the previous quarter senior secured leverage ratio, the LIBOR margin was 2.00% and the ABR margin was 1.00% for the three months ended December 31, 2016.


(6)	Available capacity is subject to maintaining sufficient relocation related assets to collateralize these securitization obligations.


(7)	As of December 31, 2016, the Company had $325 million of borrowing capacity under the Apple Ridge Funding LLC securitization program leaving $133 million of available capacity.


(8)	Consists of a £10 million revolving loan facility and a £5 million working capital facility. As of December 31, 2016, the Company had $19 million of borrowing capacity under the Cartus Financing Limited securitization program leaving $6 million of available capacity.


(9)	Not included in this table, the Company had $127 million of outstanding letters of credit at December 31, 2016 under the Unsecured Letter of Credit Facility with a weighted average rate of 2.93%. At December 31, 2016 the capacity of the facility was $131 million.

Schedule of Maturities of Long-term Debt

As of December 31, 2016, the combined aggregate amount of maturities for long-term borrowings, excluding securitization obligations, for each of the next five years is as follows:



Year	Amount
2017 (a)	$	242
2018	57
2019	527
2020	356
2021	837

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(a)

The current portion of long-term debt consists of four quarters of 2017 amortization payments totaling $22 million, $9 million and $11 million for the Term Loan A, Term Loan A-1 and Term Loan B facilities, respectively, as well as $200 million of revolver borrowings under the revolving credit facility which expires in October 2020, but are classified on the balance sheet as current due to the revolving nature of the facility.

Interest Rate Table for Revolving Credit Facility



Senior Secured Leverage Ratio	Applicable LIBOR Margin	Applicable ABR Margin
Greater than 3.50 to 1.00	2.50%	1.50%
Less than or equal to 3.50 to 1.00 but greater than or equal to 2.50 to 1.00	2.25%	1.25%
Less than 2.50 to 1.00	2.00%	1.00%

Interest Rate Table for Term Loan A Facility



Senior Secured Leverage Ratio	Applicable LIBOR Margin	Applicable ABR Margin
Greater than 3.50 to 1.00	2.50%	1.50%
Less than or equal to 3.50 to 1.00 but greater than or equal to 2.50 to 1.00	2.25%	1.25%
Less than 2.50 to 1.00	2.00%	1.00%

Interest Rate Table for Term Loan A-1



Senior Secured Leverage Ratio	Applicable LIBOR Margin	Applicable ABR Margin
Greater than 3.50 to 1.00	2.50%	1.50%
Less than or equal to 3.50 to 1.00 but greater than or equal to 2.50 to 1.00	2.25%	1.25%
Less than 2.50 to 1.00 but greater than or equal to 2.00 to 1.00	2.00%	1.00%
Less than 2.00 to 1.00	1.75%	0.75%

Expiration Capacity Table for Unsecured Letter of Credit Facilities

The facility's expiration dates are as follows:



Capacity (in millions)	Expiration Date
$65	September 2018
$66	December 2019