XML 87 R17.htm IDEA: XBRL DOCUMENT
v3.23.2

Long-Term Debt | 6 Months Ended
--- | ---
Jul. 01, 2023
Debt Disclosure [Abstract] |
Long-Term Debt | Long-Term Debt The following table shows the carrying value of the Company’s debt (in millions):
| July 1, 2023 |  | December 31, 2022
Term Loan A | $ | 1,684 |  |  | $ | 1,728 |
Revolving Credit Facility | 388 |  |  | 50 |
Receivables Financing Facilities | 144 |  |  | 254 |
Total debt | $ | 2,216 |  |  | $ | 2,032 |
Less: Debt issuance costs | (4) |  |  | (4) |
Less: Unamortized discounts | (4) |  |  | (5) |
Less: Current portion of debt | (166) |  |  | (214) |
Total long-term debt | $ | 2,042 |  |  | $ | 1,809 |
As of July 1, 2023, the future maturities of debt are as follows (in millions):
2023 (6 months remaining) |  | $ | — |
2024 |  | 188 |
2025 |  | 66 |
2026 |  | 88 |
2027 |  | 1,874 |
Total future maturities of debt |  | $ | 2,216 |
All borrowings as of July 1, 2023 were denominated in U.S. Dollars. The estimated fair value of the Company’s debt approximated $2.1 billion and $2.0 billion as of July 1, 2023 and December 31, 2022, 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. Term Loan A The principal on Term Loan A is due in quarterly installments, with the next quarterly installment due in March 2024 and the majority due upon maturity in 2027. The Company may make prepayments, as it did in the first quarter of 2023, 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 July 1, 2023, the Term Loan A interest rate was 6.20%. Interest payments are 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 July 1, 2023, the Company had letters of credit totaling $9 million, which reduced funds available for borrowings under the Revolving Credit Facility from $1,500 million to $1,491 million. As of July 1, 2023, the Revolving Credit Facility had an average interest rate of 6.15%. 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. During the second quarter of 2023, the Company amended the second Receivables Financing Facility, which allows for borrowings up to $100 million, to extend the maturity to May 13, 2024, but otherwise did not substantially change the terms of the facility. As of July 1, 2023, the Company’s Consolidated Balance Sheets included $621 million of receivables that were pledged under the two Receivables Financing Facilities. As of July 1, 2023, $144 million had been borrowed and was classified as current. Borrowings under the Receivables Financing Facilities bear interest at a variable rate plus an applicable margin. As of July 1, 2023, the Receivables Financing Facilities had an average interest rate of 6.50%. Interest is paid monthly on these borrowings. Each of the Company’s borrowings 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 9, Derivative Instruments for further information. As of July 1, 2023, 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 -Topic 470 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//470/tableOfContent + Details
Name: | us-gaap_LongTermDebtTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration