Debt

Notes Payable and Long-Term Debt

The Company's notes payable and long-term debt consisted of the following:



	Stated interest rate	Effective interest rate	March 31, 2017⁽¹⁾		December 30, 2016⁽¹⁾
			(in millions)
Senior secured notes:
$450 million notes, due December 2020	4.45%	4.53%	$	451	$	451
$300 million notes, due December 2040	5.95%	6.03%	216		216
Senior secured term loans:
$400 million Term Loan A, due August 2019	2.81%	3.73%	118		123
$690 million Term Loan A, due August 2021	2.81%	3.37%	668		676
$310 million Term Loan A, due August 2021	2.81%	3.35%	301		304
$1,131 million Term Loan B, due August 2023	3.06%	3.42%	1,107		1,110
Senior unsecured notes:
$250 million notes, due July 2032	7.13%	7.43%	246		246
$300 million notes, due July 2033	5.50%	5.88%	158		158
Capital leases due on various dates through fiscal 2020	0%-5.94%	Various	7		3
Total notes payable and long-term debt			3,272		3,287
Less: current portion			84		62
Total notes payable and long-term debt, net of current portion			$	3,188	$	3,225

⁽¹⁾

The carrying amounts of the senior secured term loans and notes and unsecured notes as of March 31, 2017, and December 30, 2016, include the remaining principal outstanding of $3,315 million and $3,336 million, respectively, plus $3 million for both periods related to the fair value of the interest rate swaps (see "Note 9–Derivative Instruments"), less unamortized debt discounts of $43 million and $46 million, respectively, less deferred debt issuance costs of $10 million and $9 million, respectively.

The interest rate on the Company's senior secured term loans is determined based on the LIBOR rate plus a margin. The margin for the Term Loan A loans ranges from 1.75% to 2.25%, depending on the Company's senior secured leverage ratio, and is computed on a quarterly basis. At March 31, 2017, the current margin on Term Loan A was 2.00%.

In February 2017, Leidos repriced the Company's senior secured $1.1 billion Term Loan B, due August 2023. As a result, the stated margin on Term Loan B was reduced by 50 basis points to 2.25% and the six month call provision was extended an additional six months. The repricing of the term loan became effective on February 16, 2017.

Principal of the Company's variable rate senior secured term loans is payable on a quarterly basis, with the majority of the principal due at maturity. Interest on the variable rate senior secured term loans is payable on a periodic basis, which must be at least quarterly. Interest on the senior fixed rate secured notes and unsecured notes is payable on a semi-annual basis with principal payments due at maturity.

The Company has a revolving credit facility providing up to $750 million in secured borrowing capacity at interest rates determined based upon the LIBOR rate plus a margin that is subject to step-down provisions based on the Company's senior secured leverage ratio. The maturity date of this credit facility is August 2021. As of March 31, 2017 and December 30, 2016, there were no borrowings outstanding under the credit facility.

The senior secured term loans and notes, unsecured notes and revolving credit facility are fully and unconditionally guaranteed and contain certain customary restrictive covenants, including among other things, restrictions on the Company's ability to create liens and enter into sale and leaseback transactions under certain circumstances. The Company was in compliance with all covenants as of March 31, 2017.