11. Short-term Borrowings and Other Debt Obligations

Our short-term borrowings and current portion of long-term debt consists of the followings:



	December 31,
(Dollars in millions)	2018		2017
364-Day Credit Agreement	$	317	$	—
Other Short-term Loans	9		11
Current Portion of Long-term Debt	57		137
Short-term Borrowings and Current Portion of Long-term Debt	$	383	$	148

Revolving Credit Agreements and Term Loan Agreement

On August 16, 2018, we amended and restated our existing Revolving Credit Agreement, entered into a Secured Second Lien 364-Day Revolving Credit Agreement and amended certain terms of our existing Term Loan Agreement. At December 31, 2018, we have two revolving credit agreements with total commitments of $846 million, comprised of an unsecured senior revolving credit agreement (the “A&R Credit Agreement”) in the amount of $529 million, and a Secured Second Lien 364-Day Revolving Credit Agreement (the “364-Day Credit Agreement” and, together with the A&R Credit Agreement, the “Revolving Credit Agreements”) in the amount of $317 million. At December 31, 2018, we have principal borrowings of $310 million under the Term Loan Agreement. We collectively refer to our Revolving Credit Agreements and Term Loan Agreement as the “Credit Agreements.”

Under the terms of the A&R Credit Agreement, commitments of $226 million from non-extending lenders (“non-extending lenders”) will mature on July 12, 2019 and commitments of $303 million from extending lenders (“extending lenders”) will mature on July 13, 2020. Commitments from our extending lenders reduced by $54 million on November 14, 2018. The 364-Day Credit Agreement matures on August 15, 2019.

The A&R Credit Agreement and Term Loan Agreement were amended to permit the debt and the liens to be incurred under the 364-Day Credit Agreement and to make other modifications related to factoring of receivables, senior borrowings, permitted liens, and covenants.

At December 31, 2018, we had total borrowing availability of $325 million available under our Credit Agreements. The following table summarizes our Credit Agreements borrowing capacity utilization and availability:



(Dollars in millions)	December 31, 2018
Facilities	$	1,156
Less Uses of Facilities:
364-Day Credit Agreement	317
A&R Credit Agreement	—
Letters of Credit	204
Term Loan Principal Borrowing	310
Borrowing Availability	$	325

Loans under the Credit Agreements are subject to varying rates of interest based on whether the loan is a Eurodollar loan or an alternate base rate loan. We also incur a quarterly facility fee on the amount of the A&R Credit Agreement. For the year ended December 31, 2018, the interest rate for the A&R Credit Agreement was LIBOR plus a margin rate of 3.55% for extending lenders and LIBOR plus a margin rate of 2.80% for non-extending lenders and the interest rate for borrowings under the Term Loan Agreement and 364-Day Credit Agreement was LIBOR plus a margin rate of 2.30% and LIBOR plus a margin rate of 3.05%, respectively.

Our Credit Agreements contain customary events of default, including in the event of our failure to comply with our financial covenants described above. We must maintain a leverage ratio of no greater than 2.5 to 1, a leverage and letters of credit ratio of no greater than 3.5 to 1, an asset coverage ratio of at least 4.0 to 1 and a current asset coverage ratio of at least 1.5 to 1, in each case with the terms and definitions for the ratios as provided in the Credit Agreements. We must also maintain a current asset coverage ratio of at least 2.1 to 1. The Term Loan Agreement and 364-Day Credit Agreement require us to pledge assets as collateral in order to borrow under the credit facility. As of December 31, 2018, we were in compliance with these financial covenants.

Other Short-Term Borrowings and Debt Activity

In February 2018, we repaid in full our 6.00% senior notes due March 2018. In June 2017, we repaid in full our 6.35% senior notes on the maturity date.

We have short-term borrowings with various domestic and international institutions pursuant to uncommitted credit facilities. At December 31, 2018, we had $9 million in short-term borrowings under these arrangements. In addition, we had $291 million of letters of credit under various uncommitted facilities and $204 million of letters of credit under the A&R Credit Agreement. At December 31, 2018, we have cash collateralized $81 million of our letters of credit, which is included in “Cash and Cash Equivalents” in the accompanying Consolidated Balance Sheets.

At December 31, 2018, the current portion of long-term debt was primarily related to the $50 million current portion of our Term Loan Agreement.