XML 28 R18.htm IDEA: XBRL DOCUMENT
v3.22.2.2

Long-Term Debt | 9 Months Ended
--- | ---
Oct. 01, 2022
Debt Disclosure [Abstract] |
Long-Term Debt | Long-Term Debt The following table shows the carrying value of the Company’s debt (in millions):
| October 1, 2022 |  | December 31, 2021
Term Loan A | $ | 1,739 |  |  | $ | 888 |
Revolving Credit Facility | 248 |  |  | — |
Receivables Financing Facilities | 183 |  |  | 108 |
Total debt | $ | 2,170 |  |  | $ | 996 |
Less: Debt issuance costs | (4) |  |  | (3) |
Less: Unamortized discounts | (5) |  |  | (2) |
Less: Current portion of debt | (144) |  |  | (69) |
Total long-term debt | $ | 2,017 |  |  | $ | 922 |
As of October 1, 2022, the future maturities of debt are as follows (in millions):
2022 (remaining 3 months) |  | $ | 11 |
2023 |  | 144 |
2024 |  | 127 |
2025 |  | 66 |
2026 |  | 87 |
Thereafter |  | 1,735 |
Total future debt maturities |  | $ | 2,170 |
All borrowings as of October 1, 2022 were denominated in U.S. Dollars. The estimated fair value of the Company’s debt approximated $2.1 billion and $1.0 billion as of October 1, 2022 and December 31, 2021, respectively. 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 do not represent the settlement value of these liabilities to the Company. The fair value of 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. In May 2022, the Company refinanced its long-term credit facilities by entering into its third amendment to the Amended and Restated Credit Agreement (“Amendment No. 3”). Amendment No. 3 increased the Company’s borrowing under Term Loan A from $875 million to $1.75 billion and increased the Company’s borrowing capacity under the Revolving Credit Facility from $1 billion to $1.5 billion. Amendment No. 3 also extended the maturities of Term Loan A and the Revolving Credit Facility to May 25, 2027 and replaced LIBOR with SOFR as the benchmark reference rate. This refinancing resulted in one-time charges of $2 million, which included certain third-party fees and the accelerated amortization of previously deferred issuance costs. These items are included in Interest income (expense), net on the Consolidated Statements of Operations. Additionally, $6 million of new issuance costs and fees were deferred and will be amortized over the remaining term of Term Loan A and the Revolving Credit Facility. Term Loan A The principal on Term Loan A is due in quarterly installments, with the next quarterly installment due in December 2022 and the majority due upon the May 25, 2027 maturity date. The Company may make prepayments, in whole or in part, without premium or penalty, and would be required to prepay certain outstanding amounts in the event of certain circumstances or transactions. As of October 1, 2022, the Term Loan A interest rate was 3.10%. Interest payments are generally made monthly and are subject to variable rates plus an applicable margin. Revolving Credit Facility The Company has a Revolving Credit Facility that is available for working capital and other general business purposes, including letters of credit. As of October 1, 2022, the Company had letters of credit totaling $7 million, which reduced funds available for borrowings under the Revolving Credit Facility from $1,500 million to $1,493 million. As of October 1, 2022, the Revolving Credit Facility had an average interest rate of 4.17%. Upon borrowing, interest payments are made monthly and are subject to variable rates plus an applicable margin. The Revolving Credit Facility matures on May 25, 2027. Receivables Financing Facilities The Company has two Receivables Financing Facilities with financial institutions that have a combined total borrowing limit 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. The Company’s first Receivables Financing Facility allows for borrowings of up to $180 million and matures on March 19, 2024. The Company’s second Receivable Financing Facility allows for borrowings of up to $100 million and matures on May 15, 2023. As of October 1, 2022, the Company’s Consolidated Balance Sheets included $773 million of receivables that were pledged under the two Receivables Financing Facilities. As of October 1, 2022, $183 million had been borrowed, of which $100 million was classified as current. Borrowings under the Receivables Financing Facilities bear interest at a variable rate plus an applicable margin. As of October 1, 2022, the Receivables Financing Facilities had an average interest rate of 4.04%. Interest is paid on these borrowings on a monthly basis. Each of the Company’s borrowing arrangements described above 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 10, Derivative Instruments for further information. As of October 1, 2022, 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 https://asc.fasb.org/topic&trid=2208564 + Details
Name: | us-gaap_LongTermDebtTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration