Debt

The following tables present the components of Notes payable and current maturities of long-term debt and Long-term debt in our Consolidated Balance Sheets:



(in millions)	July 31, 2016		October 31, 2015
Manufacturing operations
Senior Secured Term Loan Credit Facility, as amended, due 2020, net of unamortized discount of $14 and $17, respectively	$	1,020	$	1,023
8.25% Senior Notes, due 2022, net of unamortized discount of $16 and $18, respectively	1,184		1,182
4.50% Senior Subordinated Convertible Notes, due 2018, net of unamortized discount of $11 and $14, respectively	189		186
4.75% Senior Subordinated Convertible Notes, due 2019, net of unamortized discount of $26 and $32, respectively	385		379
Debt of majority-owned dealerships	13		28
Financing arrangements and capital lease obligations	44		49
Loan Agreement related to 6.5% Tax Exempt Bonds, due 2040	225		225
Financed lease obligations	61		111
Other	10		15
Total Manufacturing operations debt	3,131		3,198
Less: Current portion	67		103
Net long-term Manufacturing operations debt	$	3,064	$	3,095



(in millions)	July 31, 2016		October 31, 2015
Financial Services operations
Asset-backed debt issued by consolidated SPEs, at fixed and variable rates, due serially through 2021	$	867	$	870
Bank credit facilities, at fixed and variable rates, due dates from 2016 through 2021	874		1,063
Commercial paper, at variable rates, program matures in 2017	93		86
Borrowings secured by operating and finance leases, at various rates, due serially through 2021	100		81
Total Financial Services operations debt	1,934		2,100
Less: Current portion	1,322		1,007
Net long-term Financial Services operations debt	$	612	$	1,093

Financial Services Operations

Asset-backed Debt

In April 2016, Truck Retail Accounts Corporation ("TRAC"), one of our consolidated SPEs, renewed its $100 million revolving facility for one year, to April 2017. Borrowings under this facility are secured by eligible retail accounts receivable.

In February 2016, the maximum capacity of NFC’s wholesale variable funding notes ("VFN") facility was increased from $375 million to $500 million. The VFN facility is secured by assets of the wholesale note owner trust. In May 2016, the maturity date of the VFN facility was extended from October 2016 to May 2017.

Bank Credit Facilities

In May 2016, NFC amended and extended its 2011 bank credit facility which was originally due in December 2016. The 2016 amendment extends the maturity date to June 2018 and initially reduced the revolving portion of the facility from $500 million to $400 million. The revolving portion will be further reduced to $275 million effective in December 2016. The borrowings on the revolving portion of the facility totaled $300 million as of July 31, 2016. The amendment also provides for a reduction in the term loan facility to $82 million, effective in December 2016, at which time the quarterly principal payments are reduced from $9 million to $2 million. The balance of the term loan facility was $221 million as of July 31, 2016. The amendment allows NFC to increase revolving or term loan commitments, subject to obtaining commitments from existing or new lenders to provide additional or increased revolving commitments and/or additional term loans, to permit a maximum total facility size of $700 million after giving effect to any such increase and without taking into account the non-extended loans and commitments.

In the three and nine months ended July 31, 2016, NFC paid $50 million and $80 million, respectively, in cash dividends to Navistar, Inc. Dividends are subject to the restricted payment covenants set forth in the NFC bank credit facility.