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

12 Months Ended

Dec. 31, 2017

Total indebtedness is as follows:



	December 31,
	2017		2016
Senior Secured Credit Facility:
Revolving Credit Facility	$	70	$	200
Term Loan B	1,063		1,069
Term Loan A Facility:
Term Loan A	390		411
Term Loan A-1	339		347
4.50% Senior Notes	444		439
5.25% Senior Notes	546		545
4.875% Senior Notes	496		496
Total Short-Term & Long-Term Debt	$	3,348	$	3,507
Securitization obligations:
Apple Ridge Funding LLC	$	181	$	192
Cartus Financing Limited	13		13
Total securitization obligations	$	194	$	205

Schedule of Debt

As of December 31, 2017, 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	$	70	$ *		$	70
Term Loan B	(3)	July 2022	1,083		20		1,063
Term Loan A Facility:
Term Loan A	(4)	October 2020	391		1		390
Term Loan A-1	(5)	July 2021	342		3		339
Senior Notes	4.50%	April 2019	450		6		444
Senior Notes	5.25%	December 2021	550		4		546
Senior Notes	4.875%	June 2023	500		4		496
Securitization obligations:(6)
Apple Ridge Funding LLC (7)		June 2018	181		*		181
Cartus Financing Limited (8)		August 2018	13		*		13
Total (9)			$	3,580	$	38	$	3,542

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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, 2017, the Company had $1,050 million of borrowing capacity under its Revolving Credit Facility, leaving $980 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. On February 23, 2018, the Company had $242 million in outstanding borrowings under the New Revolving Credit Facility, leaving $1,158 million of available capacity. See Note 19, "Subsequent Events" for a description of the February 2018 refinancing.

(2)

Interest rates with respect to revolving loans under the Senior Secured Credit Facility at December 31, 2017 were 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, 2017.

(3)

The Term Loan B provided 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 was based on, at the Company’s option, (a) adjusted LIBOR plus 2.25% (with a LIBOR floor of 0.75%) or (b) JPMorgan Chase Bank, N.A.’s prime rate ("ABR") plus 1.25% (with an ABR floor of 1.75%). See Note 19, "Subsequent Events" for a description of the February 2018 refinancing.

(4)

The Term Loan A provided 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 were 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, 2017. See Note 19, "Subsequent Events" for a description of the February 2018 refinancing.

(5)

The Term Loan A-1 provided 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 were 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, 2017. See Note 19, "Subsequent Events" for a description of the February 2018 refinancing.


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


(7)	In November 2017, the capacity of the Apple Ridge facility was reduced from $325 million to $250 million. As of December 31, 2017, the Company had $250 million of borrowing capacity under the Apple Ridge Funding LLC securitization program leaving $69 million of available capacity.


(8)	Consists of a £10 million revolving loan facility and a £5 million working capital facility. As of December 31, 2017, the Company had $20 million of borrowing capacity under the Cartus Financing Limited securitization program leaving $7 million of available capacity.


(9)	Not included in this table is the Company's Unsecured Letter of Credit Facility which had a capacity of $74 million with $69 million utilized at a weighted average rate of 3.24% at December 31, 2017.

Schedule of Maturities of Long-term Debt

As of December 31, 2017, 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
2018 (a)	$	127
2019	527
2020	356
2021	837
2022	1,039

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(a)

The current portion of long-term debt consists of four quarters of 2018 amortization payments totaling $33 million, $13 million and $11 million for the Term Loan A, Term Loan A-1 and Term Loan B facilities, respectively, as well as $70 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. See Note 19, "Subsequent Events" for a description of the February 2018 refinancing.

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



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
$8	September 2018
$66	December 2019