XML 61 R16.htm IDEA: XBRL DOCUMENT
v3.20.1

Long-Term Debt | 3 Months Ended
--- | ---
Mar. 28, 2020
Debt Disclosure [Abstract] |
Long-Term Debt | Long-Term Debt The following table shows the carrying value of the Company’s debt (in millions):
| March 28, 2020 |  | December 31, 2019
Term Loan A | $ | 917 |  |  | $ | 917 |
Revolving Credit Facility | 258 |  |  | 103 |
Receivables Financing Facilities | 230 |  |  | 266 |
Total debt | $ | 1,405 |  |  | $ | 1,286 |
Less: Debt issuance costs | (5 | ) |  | (6 | )
Less: Unamortized discounts | (3 | ) |  | (3 | )
Less: Current portion of debt | (230 | ) |  | (197 | )
Total long-term debt | $ | 1,167 |  |  | $ | 1,080 |
As of March 28, 2020, the future maturities of debt, excluding debt discounts and issuance costs, were as follows (in millions):
2020 |  | $ | 100 |
2021 |  | 160 |
2022 |  | 56 |
2023 |  | 81 |
2024 |  | 1,008 |
Total future debt maturities |  | $ | 1,405 |
All borrowings as of March 28, 2020 were denominated in U.S. Dollars, except for €92 million under the Revolving Credit Facility that was borrowed in Euros. The estimated fair value of the Company’s debt approximated $1.3 billion as of March 28, 2020 and December 31, 2019. These fair value amounts, developed based on inputs classified as Level 2 within the fair value hierarchy, represent the estimated value at which the Company’s lenders could trade its debt within the financial markets and does not represent the settlement value of these debt liabilities to the Company. The fair value of the debt will continue to vary each period based on a number of factors including fluctuations in market interest rates, as well as changes to the Company’s credit ratings. Credit Facilities The principal on Term Loan A is due in quarterly installments, with the next quarterly installment due in June 2021 and the majority due upon its August 9, 2024 maturity. The Company may make prepayments against Term Loan A, in whole or in part, without premium or penalty. The Company would be required to prepay certain outstanding amounts in the event of certain circumstances or transactions. As of March 28, 2020, the Term Loan A interest rate was 2.27%. Interest payments are made monthly and are subject to variable rates plus an applicable margin. The Revolving Credit Facility is available for working capital and other general corporate purposes, including letters of credit. As of March 28, 2020, the Company had letters of credit totaling $5 million, which reduced funds available for borrowings under the agreement from $1 billion to $995 million. As of March 28, 2020, the Revolving Credit Facility had an average interest rate of 1.83%. Interest payments are made monthly and are subject to variable rates plus an applicable margin. All remaining principal is due upon the Revolving Credit Facility’s maturity on August 9, 2024. Receivables Financing Facilities The Company has two Receivables Financing Facilities with financial institutions carrying total borrowing limits of up to $280 million. As collateral, the Company pledges perfected first-priority security interests in its U.S. domestically originated accounts receivable. The Company has accounted for transactions under its Receivables Financing Facilities as secured borrowings. As of March 28, 2020, the Company’s Consolidated Balance Sheets included $507 million of receivables that were pledged under the two Receivables Financing Facilities. As of March 28, 2020, $230 million had been borrowed, all of which was classified as current. Borrowings under the Receivables Financing Facilities bear interest at a variable rate plus an applicable margin. As of March 28, 2020, the Receivables Financing Facilities had an average interest rate of 1.85%. Interest is paid on these borrowings on a monthly basis. The Company’s first Receivables Financing Facility, which was originally entered into in December 2017 and was amended in May 2019, allows for borrowings of up to $180 million and will mature on March 29, 2021. The Company’s second Receivable Financing Facility, which was entered into in May 2019, allows for borrowings of up to $100 million and will mature on May 18, 2020. Both the Revolving Credit Facility and Receivables Financing Facilities include terms and conditions that limit the incurrence of additional borrowings and require that certain financial ratios be maintained at designated levels. The Company uses interest rate swaps to manage the interest rate risk associated with its debt. See Note 8, Derivative Instruments for further information. As of March 28, 2020, the Company was in compliance with all debt covenants.

X
- References No definition available. + Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for long-term debt. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
Name: | us-gaap_LongTermDebtTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration