Xerox 2014 Annual Report Download - page 113

Scheduled principal payments due on our long-term debt for the next five years and thereafter are as follows:
2015(1) 2016 2017 2018 2019 Thereafter Total
Continuing operations $ 1,276 $974 $1,023 $1,017 $1,158 $2,123 $7,571
Discontinued operations (2) 31 24 14 6 — — 75
Total Long-term Principal Payments $1,307 $998 $1,037 $1,023 $1,158 $2,123 $7,646
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(1) Quarterly long-term debt maturities from continuing operations for 2015 are $1,007, $256, $7 and $6 for the first, second, third and fourth
quarters, respectively.
(2) Represents payments on capital lease obligations related to our ITO business which is held for sale and being reported as a discontinued
operation at December 31, 2014. These obligations are expected to be assumed by the purchaser of the ITO business. Refer to Note 4 -
Divestitures for additional information regarding this pending sale.
Commercial Paper
We have a private placement commercial paper (CP) program in the U.S. under which we may issue CP up to a
maximum amount of $2.0 billion outstanding at any time. Aggregate CP and Credit Facility borrowings may not
exceed $2.0 billion outstanding at any time. The maturities of the CP Notes will vary, but may not exceed 390 days
from the date of issue. The CP Notes are sold at a discount from par or, alternatively, sold at par and bear interest at
market rates. CP outstanding at December 31, 2014 and 2013, was $150 and $0, respectively.
Credit Facility
In 2014, we entered into an Amended and Restated Credit Agreement that extended the maturity date of our $2.0
billion unsecured revolving Credit Facility to 2019 from 2016. The amendment also included modest improvements
in pricing and minor changes in the composition of the group of lenders. The amended and restated Credit Facility
contains a $300 letter of credit sub-facility, and also includes an accordion feature that would allow us to increase
(from time to time, with willing lenders) the overall size of the facility up to an aggregate amount not to exceed $2.75
billion. We also have the right to request a one year extension on each of the first and second anniversaries of the
amendment date.
We deferred $7 of debt issuance costs in connection with this amendment, which included approximately $4 of
unamortized deferred debt issue costs associated with the previous Credit Facility. The write-off of debt issuance
costs associated with lenders that reduced their participation in the amended and restated Credit Facility was not
material.
The Credit Facility provides a backstop to our $2.0 billion CP program. Proceeds from any borrowings under the
Credit Facility can be used to provide working capital for the Company and its subsidiaries and for general
corporate purposes.
At December 31, 2014 we had no outstanding borrowings or letters of credit under the Credit Facility.
The Credit Facility is available, without sublimit, to certain of our qualifying subsidiaries. Our obligations under the
Credit Facility are unsecured and are not currently guaranteed by any of our subsidiaries. Any domestic subsidiary
that guarantees more than $100 of Xerox Corporation debt must also guaranty our obligations under the Credit
Facility. In the event that any of our subsidiaries borrows under the Credit Facility, its borrowings thereunder would
be guaranteed by us.
Borrowings under the Credit Facility bear interest at our choice, at either (a) a Base Rate as defined in our Credit
Facility agreement, plus a spread that varies between 0.00% and 0.45% depending on our credit rating at the time
of borrowing, or (b) LIBOR plus an all-in spread that varies between 0.90% and 1.45% depending on our credit
rating at the time of borrowing. Based on our credit rating as of December 31, 2014, the applicable all-in spreads for
the Base Rate and LIBOR borrowing were 0.10% and 1.10%, respectively.
An annual facility fee is payable to each lender in the Credit Facility at a rate that varies between 0.10% and 0.30%
depending on our credit rating. Based on our credit rating as of December 31, 2014, the applicable rate is 0.15%.
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