XML 35 R18.htm IDEA: XBRL DOCUMENT
v3.3.1.900

Short-term Borrowings and Long-term Debt | 12 Months Ended
--- | ---
Dec. 26, 2015
Debt Disclosure [Abstract] |
Short-term Borrowings and Long-term Debt | Short-term Borrowings and Long-term Debt
|  | 2015 |  | 2014
Short-term Borrowings |  |  |  |
Current maturities of long-term debt |  | $ | 313 |  |  | $ | 264 |
Current portion of fair value hedge accounting adjustment |  | 1 |  |  | 3 |
Unsecured Short-Term Loan Credit Facility, expires June 2016 |  | 600 |  |  | — |
Other |  | 9 |  |  | — |
|  | $ | 923 |  |  | $ | 267 |
Long-term Debt |  |  |  |
Senior Unsecured Notes |  | $ | 2,497 |  |  | $ | 2,746 |
Unsecured Revolving Credit Facility, expires March 2017 |  | 701 |  |  | 416 |
Capital lease obligations (See Note 11) |  | 169 |  |  | 175 |
|  | 3,367 |  |  | 3,337 |
Less current maturities of long-term debt |  | (313 | ) |  | (264 | )
Long-term debt excluding long-term portion of hedge accounting adjustment |  | 3,054 |  |  | 3,073 |
Long-term portion of fair value hedge accounting adjustment |  | — |  |  | 4 |
Long-term debt including hedge accounting adjustment |  | $ | 3,054 |  |  | $ | 3,077 |
Our primary bank credit agreement comprises a $1.3 billion syndicated senior unsecured revolving credit facility (the "Credit Facility") which matures in March 2017. The Credit Facility includes 24 participating banks with commitments ranging from $23 million to $115 million. Under the terms of the Credit Facility, we may borrow up to the maximum borrowing limit, less outstanding letters of credit or banker’s acceptances, where applicable. At December 26, 2015, our unused Credit Facility totaled $594 million net of outstanding letters of credit of $5 million. There were borrowings of $701 million and $416 million outstanding under the Credit Facility at December 26, 2015 and December 27, 2014, respectively. The interest rate for most borrowings under the Credit Facility ranges from 1.00% to 1.75% over the London Interbank Offered Rate (“LIBOR”). The exact spread over LIBOR under the Short-Term Loan Credit Facility depends upon our performance against specified financial criteria. Interest on any outstanding borrowings under the Credit Facility is payable at least quarterly. On December 8, 2015, we executed a credit agreement providing for an unsecured term loan facility (the “Short-Term Loan Credit Facility”) in an amount up to $1.5 billion which matures in June 2016 with an option for us to extend maturity for an additional three months and includes three participating banks. Under the terms of the Short-Term Loan Credit Facility, we may borrow up to the full amount of the facility in up to three draws. At December 26, 2015, our unused Short-Term Loan Credit Facility totaled $900 million net of outstanding borrowings of $600 million. The interest rate for most borrowings under the Short-Term Loan Credit Facility ranges from 1.00% to 1.75% over LIBOR. The exact spread over LIBOR under the Short-Term Loan Credit Facility depends upon our performance against specified financial criteria. Interest on any outstanding borrowings under the Short-Term Loan Credit Facility is payable at least quarterly. Both the Credit Facility and the Short-Term Loan Credit Facility are unconditionally guaranteed by our principal domestic subsidiaries and contain financial covenants relating to the maintenance of leverage and fixed charge coverage ratios. The agreements for both facilities also contain affirmative and negative covenants including, among other things, limitations on certain additional indebtedness and liens, and certain other transactions specified in the agreement. Given the Company’s strong balance sheet and cash flows we were able to comply with all debt covenant requirements at December 26, 2015 with a considerable amount of cushion. Additionally, both facilities contain cross-default provisions whereby our failure to make any payment on our indebtedness in a principal amount in excess of $125 million, or the acceleration of the maturity of any such indebtedness, will constitute a default under such agreement. The majority of our remaining long-term debt primarily comprises Senior Unsecured Notes with varying maturity dates from 2016 through 2043 and stated interest rates ranging from 3.75% to 6.88%. The Senior Unsecured Notes represent senior, unsecured obligations and rank equally in right of payment with all of our existing and future unsecured unsubordinated indebtedness. Our Senior Unsecured Notes contain cross-default provisions whereby the acceleration of the maturity of any of our indebtedness in a principal amount in excess of $50 million will constitute a default under the Senior Unsecured Notes unless such indebtedness is discharged, or the acceleration of the maturity of that indebtedness is annulled, within 30 days after notice. During the fourth quarter of 2015, we repaid $250 million of Senior Unsecured Notes upon their maturity. The following table summarizes all Senior Unsecured Notes issued that remain outstanding at December 26, 2015:
|  |  |  |  |  | Interest Rate
Issuance Date(a) |  | Maturity Date |  | Principal Amount (in millions) |  | Stated |  | Effective(b)
April 2006 |  | April 2016 |  | $ | 300 |  |  | 6.25% |  | 6.03%
October 2007 |  | March 2018 |  | $ | 325 |  |  | 6.25% |  | 6.36%
October 2007 |  | November 2037 |  | $ | 325 |  |  | 6.88% |  | 7.45%
August 2009 |  | September 2019 |  | $ | 250 |  |  | 5.30% |  | 5.59%
August 2010 |  | November 2020 |  | $ | 350 |  |  | 3.88% |  | 4.01%
August 2011 |  | November 2021 |  | $ | 350 |  |  | 3.75% |  | 3.88%
October 2013 |  | November 2023 |  | $ | 325 |  |  | 3.88% |  | 4.01%
October 2013 |  | November 2043 |  | $ | 275 |  |  | 5.35% |  | 5.42%
(a) | Interest payments commenced approximately six months after issuance date and are payable semi-annually thereafter.
(b) | Includes the effects of the amortization of any (1) premium or discount; (2) debt issuance costs; and (3) gain or loss upon settlement of related treasury locks and forward-starting interest rate swaps utilized to hedge the interest rate risk prior to the debt issuance. Excludes the effect of any swaps that remain outstanding.
The annual maturities of short-term borrowings and long-term debt as of December 26, 2015, excluding capital lease obligations of $169 million and fair value hedge accounting adjustments of $1 million, are as follows:
Year ended: |
2016 | $ | 909 |
2017 | 701 |
2018 | 325 |
2019 | 250 |
2020 | 350 |
Thereafter | 1,275 |
Total | $ | 3,810 |
Interest expense on short-term borrowings and long-term debt was $155 million, $152 million and $270 million in 2015, 2014 and 2013, respectively. 2013 included $118 million in losses recorded in Interest expense, net as a result of premiums paid and other costs related to the extinguishment of debt. See Losses Related to the Extinguishment of Debt section of Note 4 for further discussion.

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 information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration