Long-term Debt and Borrowing Arrangements

Long-term and other borrowing arrangements consisted of:



		As of			As of
	Maturity Dates	March 31,			December 31,
	Maturity Dates	2017			2016
Floating Rate Senior Notes ^(a)	December 2017	$	249		$	249
Floating Rate Term Loan	March 2019	—			144
6% Euro-denominated Senior Notes ^(b)	March 2021	196			194
Floating Rate Term Loan ^(c)	March 2022	1,144			816
5⅛% Senior Notes	June 2022	400			400
5½% Senior Notes	April 2023	675			675
6⅜% Senior Notes	April 2024	350			350
4⅛% Euro-denominated Senior Notes	November 2024	320			316
5¼% Senior Notes	March 2025	375			375
4½% Euro-denominated Senior Notes	May 2025	266			—
Other ^(d)		59			57
Deferred financing fees		(54		)	(53		)
Total		3,980			3,523
Less: Short-term debt and current portion of long-term debt		474			279
Long-term debt		$	3,506		$	3,244

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^(a)	The interest rate on these notes is equal to three-month LIBOR plus 275 basis points, for an aggregate rate of 3.80% at March 31, 2017; the Company has entered into an interest rate swap to hedge its interest rate exposure related to these notes at an aggregate rate of 3.58%. These notes have been called for redemption.


^(b)	These notes have been called for redemption.

^(c)

The floating rate term loan is part of the Company’s senior credit facility, which is secured by pledges of capital stock of certain subsidiaries of the Company, and liens on substantially all of the Company’s intellectual property and certain other real and personal property. As of March 31, 2017, the floating rate term loan due 2022 bears interest at three-month LIBOR plus 200 basis points, for an aggregate rate of 2.82%. The Company has entered into a swap to hedge $700 million of its interest rate exposure related to the floating rate term loan at an aggregate rate of 3.75%.


^(d)	Primarily includes capital leases which are secured by liens on the related assets.

In March 2017, the Company issued €250 million of 4½% euro-denominated Senior Notes due 2025, the proceeds of which will be used to redeem all of its outstanding 6% euro-denominated Senior Notes due 2021 and a portion of its Floating Rate Senior Notes due 2017.

In March 2017, the Company increased its Floating Rate Term Loan due 2022 to $1.1 billion and reduced the loan interest rate to three-month LIBOR plus 2.00%. The Company used the incremental term loan proceeds to repay all of its outstanding Floating Rate Term Loan due 2019. The remaining proceeds will be used to redeem the remainder of the Company’s Floating Rate Senior Notes due 2017.

Committed Credit Facilities and Available Funding Arrangements

At March 31, 2017, the committed corporate credit facilities available to the Company and/or its subsidiaries were as follows:



	Total Capacity		Outstanding Borrowings		Letters of Credit Issued		Available Capacity
Senior revolving credit facility maturing 2021 ^(a)	$	1,800	$	—	$	904	$	896
Other facilities^(b)	4		4		—		—

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^(a)	The senior revolving credit facility bears interest at one-month LIBOR plus 200 basis points and is part of the Company’s senior credit facility, which is secured by pledges of capital stock of certain subsidiaries of the Company, and liens on substantially all of the Company’s intellectual property and certain other real and personal property.


^(b)	These facilities encompass bank overdraft lines of credit, bearing interest of 1.50% to 3.10% as of March 31, 2017.

At March 31, 2017, the Company had various uncommitted credit facilities available, under which it had drawn approximately $7 million, which bear interest at rates between 0.71% and 4.50%.

Debt Covenants

The agreements governing the Company’s indebtedness contain restrictive covenants, including restrictions on dividends paid to the Company by certain of its subsidiaries, the incurrence of additional indebtedness by the Company and certain of its subsidiaries, acquisitions, mergers, liquidations, and sale and leaseback transactions. The Company’s senior credit facility also contains a maximum leverage ratio requirement. As of March 31, 2017, the Company was in compliance with the financial covenants governing its indebtedness.