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Financing Arrangements | 12 Months Ended
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Apr. 24, 2015
Debt Disclosure [Abstract] |
Financing Arrangements | 10. Financing Arrangements Long-term Debt The following table summarizes information related to our long-term debt (in millions, except interest rates):
|  | April 24, 2015 |  |  | April 25, 2014 |
|  |  |  |  |  | Effective |  |  |  |  |  |  | Effective |
|  | Amount |  |  | Interest Rate |  |  | Amount |  |  | Interest Rate |
2.00% Senior Notes Due 2017 |  | $ | 750.0 |  |  |  | 2.25 | % |  | $ | 750.0 |  |  |  | 2.25 | %
3.375% Senior Notes Due 2021 |  |  | 500.0 |  |  |  | 3.54 | % |  |  | — |  |  | N/A |
3.25% Senior Notes Due 2022 |  |  | 250.0 |  |  |  | 3.43 | % |  |  | 250.0 |  |  |  | 3.43 | %
Total principal amount |  |  | 1,500.0 |  |  |  |  |  |  |  | 1,000.0 |  |  |  |  |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unamortized discount |  |  | (5.0 | ) |  |  |  |  |  |  | (4.5 | ) |  |  |  |
Unamortized issuance costs |  |  | (7.5 | ) |  |  |  |  |  |  | (5.4 | ) |  |  |  |
Total long-term debt |  | $ | 1,487.5 |  |  |  |  |  |  | $ | 990.1 |  |  |  |  |
N/A - Not Applicable Senior Notes On June 5, 2014 we issued $500.0 million aggregate par value of 3.375% Senior Notes, with a maturity date of June 15, 2021, and received proceeds of approximately $494.7 million, net of discount and issuance costs, which will be used for general corporate purposes, including possible stock repurchases, dividends, capital expenditures, working capital and potential acquisitions and strategic transactions. Our 2.00% Senior Notes and 3.25% Senior Notes, with a par value of $750.0 million and $250.0 million, respectively, were issued in December 2012. We collectively refer to such long-term debt as our Senior Notes. Interest on our Senior Notes is paid semi-annually on June 15 and December 15. Our Senior Notes, which are unsecured, unsubordinated obligations, rank equally in right of payment with any future senior unsecured indebtedness. We may redeem the Senior Notes in whole or in part, at any time at our option at specified redemption prices. In addition, upon the occurrence of certain change of control triggering events, we may be required to repurchase the Senior Notes under specified terms. The Senior Notes also include covenants that limit our ability to incur debt secured by liens on assets or on shares of stock or indebtedness of our subsidiaries; to engage in sale and lease-back transactions; and to consolidate, merge or sell all or substantially all of our assets. As of April 24, 2015, we were in compliance with all covenants associated with the Senior Notes. As of April 24, 2015, our aggregate future principal debt maturities for our Senior Notes are as follows (in millions):
Fiscal Year |  | Amount |
2018 |  | $ | 750.0 |
Thereafter |  |  | 750.0 |
Total |  | $ | 1,500.0 |
1.75% Convertible Senior Notes due 2013 settled in June 2013 On June 10, 2008, we issued $1,265.0 million aggregate principal amount of 1.75% Convertible Senior Notes (the Convertible Notes) that matured in June 2013. Upon maturity, the Convertible Notes were converted into shares of common stock at a conversion rate of 31.40 shares of common stock per $1,000 principal amount of the Convertible Notes (which represented the effective conversion price of $31.85 per share). Upon conversion in June 2013, the holders received cash for the principal amount of the Convertible Notes and an aggregate of 4.9 million shares of common stock for the $178.9 million excess of the conversion value over the principal amount. We separately accounted for the liability and equity components of the Convertible Notes. The initial debt component of the Convertible Notes was valued at $1,017.0 million based on the contractual cash flows discounted at an appropriate comparable market non-convertible debt borrowing rate at the date of issuance of 6.31%, with the equity component representing the residual amount of the proceeds of $248.0 million which was recorded as a debt discount. Issuance costs were allocated pro-rata based on the relative initial carrying amounts of the debt and equity components. As a result, $5.2 million of the issuance costs was allocated to the equity component of the Convertible Notes, and $21.4 million of the issuance costs remained classified as other non-current assets. The debt discount and the issuance costs allocated to the debt component were amortized as additional interest expense over the term of the Convertible Notes using the effective interest method. The interest expense recognized on the Convertible Notes consisted of the following (in millions):
|  | Year Ended |
|  | April 25, 2014 |  |  | April 26, 2013 |
Contractual coupon interest expense |  | $ | 2.5 |  |  | $ | 22.0 |
Amortization of debt discount |  |  | 7.1 |  |  |  | 55.5 |
Amortization of debt issuance costs |  |  | 0.6 |  |  |  | 4.8 |
Less capitalized interest |  |  | — |  |  |  | (1.1 | )
Total interest expense related to Convertible Notes |  | $ | 10.2 |  |  | $ | 81.2 |
Concurrent with the issuance of the Convertible Notes, we entered into arrangements to buy up to approximately 31.8 million shares of our common stock, at a price of $31.85 per share. During fiscal 2014, concurrent with the repayment and conversion of the Convertible Notes, we exercised the Convertible Note hedges which were net settled for an aggregate of 3.9 million shares from the counterparties. We also entered into separate transactions in which we sold warrants to acquire 39.7 million shares of our common stock at an exercise price of $41.28 per share. During fiscal 2014, 31.9 million warrants were exercised at a weighted-average price of $43.09 and were net settled with 1.1 million shares of our common stock, equal to the difference between the market price on the date of exercise and the exercise price of the warrants on their respective exercise dates, and the remaining warrants expired unexercised. Credit Facility In December 2012, we entered into a credit agreement with a syndicated group of lenders that is scheduled to expire on December 21, 2017 and provides for an unsecured $250.0 million revolving credit facility that is comprised of revolving loans, Eurocurrency loans and/or swingline loans. The credit facility includes a $100.0 million foreign currency sub-facility, a $50.0 million letter of credit sub-facility and a $10.0 million swingline sub-facility available on same-day notice. Available borrowings under the credit facility are reduced by the amount of any outstanding borrowings on the sub-facilities. We may also, subject to certain requirements, request an increase in the facility up to an additional $100.0 million and request two additional one-year extensions, subject to certain conditions. The proceeds from the facility may be used by us for general corporate purposes. Borrowings under the facility, except for swingline loans, accrue interest in arrears at an alternate base rate as defined in the credit agreement or, at our option, an adjusted London Interbank Offered Rate (LIBOR) plus in each case, a spread (based on our public debt ratings and the type of loan) ranging from 0.2% to 1.2%. Swingline borrowings accrue interest at an alternate base rate. In addition, we are required to pay fees to maintain the credit facility, whether or not we have outstanding borrowings. The facility contains financial covenants requiring us to maintain a maximum leverage ratio of not more than 3.0:1.0 and a minimum interest coverage ratio of not less than 3.5:1.0. The facility contains customary affirmative and negative covenants, including covenants that limit our ability to incur debt secured by liens on assets or indebtedness of our subsidiaries and to consolidate, merge or sell all or substantially all of our assets. As of April 24, 2015, no borrowings were outstanding under the facility and we were in compliance with all covenants associated with the facility. Other Long-Term Financing Arrangements The following presents the amounts due under other long-term financing arrangements (in millions):
|  | April 24, 2015 |  |  | April 25, 2014 |
Other long-term financing arrangements |  | $ | 15.9 |  |  | $ | 13.1 |
Less: current portion |  |  | (9.5 | ) |  |  | (6.6 | )
Non-current portion of other long-term financing arrangements |  | $ | 6.4 |  |  | $ | 6.5 |

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- 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
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