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Borrowings | 9 Months Ended
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Jun. 28, 2019
Debt Disclosure [Abstract] |
Borrowings | Borrowings Short-Term Debt At June 28, 2019, short-term debt consisted of a bilateral term loan facility, convertible senior notes assumed as part of the KeyW acquisition and other notes payable with an aggregate principal balance of $222.7 million. On June 12, 2019, Jacobs entered into a $200.0 million bilateral term loan facility. This facility incurs interest at LIBOR plus a margin of 1% and matures in June 2020. Amounts outstanding under the bilateral term loan facility may be prepaid at the option of the Company without premium or penalty, subject to customary breakage fees in connection with the prepayment of eurocurency loans. We were in compliance with the covenants under the bilateral term loan facility at June 28, 2019. On June 12, 2019, in connection with the completion of the KeyW acquisition, Jacobs assumed KeyW's 2.5% convertible senior notes valued at $22.6 million as of June 28, 2019. At their maturity on July 15, 2019, the convertible senior notes were repaid. Long-Term Debt At June 28, 2019 and September 28, 2018, long-term debt consisted of the following (principal amounts in thousands):
| Interest Rate |  | Maturity |  | June 28, 2019 |  | September 28, 2018
New Credit Agreement | LIBOR + applicable margin (1) |  | March 2024 |  | $ | 129,046 |  |  | $ | — |
Revolving Credit Facility | LIBOR + applicable margin (2) |  | February 2020 |  | — |  |  | 149,129 |
Term Loan Facility | LIBOR + applicable margin (3) |  | December 2020 |  | 400,000 |  |  | 1,500,000 |
Fixed-rate notes due: |  |  |  |  |  |  |
Senior Notes, Series A | 4.27% |  | May 2025 |  | 190,000 |  |  | 190,000 |
Senior Notes, Series B | 4.42% |  | May 2028 |  | 180,000 |  |  | 180,000 |
Senior Notes, Series C | 4.52% |  | May 2030 |  | 130,000 |  |  | 130,000 |
Less: Deferred Financing Fees |  |  |  |  | (3,848 | ) |  | (4,998 | )
Other | Varies |  | Varies |  | — |  |  | 36 |
Total Long-term debt, net |  |  |  |  | $ | 1,025,198 |  |  | $ | 2,144,167 |
(1) | Depending on the Company’s Consolidated Leverage Ratio (as defined in the credit agreement governing the New Credit Agreement (defined below)), borrowings under the New Credit Agreement bear interest at either a eurocurrency rate plus a margin of between 0.875% and 1.5% or a base rate plus a margin of between 0% and 0.5%. The applicable LIBOR rate at June 28, 2019 was approximately 1.38%.
(2) | Depending on the Company’s Consolidated Leverage Ratio (as defined in the credit agreement governing the Revolving Credit Facility (defined below)), borrowings under the Revolving Credit Facility bore interest at either a eurocurrency rate plus a margin of between 1.0% and 1.5% or a base rate plus a margin of between 0% and 0.5%. The applicable LIBOR rates at September 28, 2018 were approximately 1.38% to 3.47%, respectively.
(3) | Depending on the Company’s Consolidated Leverage Ratio (as defined in the credit agreement governing the Term Loan Facility (defined below)), borrowings under the Term Loan Facility bear interest at either a eurocurrency rate plus a margin of between 1.0% and 1.5% or a base rate plus a margin of between 0% and 0.5%. The applicable LIBOR rates at June 28, 2019 and September 28, 2018 was approximately 3.78% and 3.71%, respectively.
On February 7, 2014, Jacobs and certain of its subsidiaries entered into a $1.6 billion long-term unsecured, revolving credit facility (as amended, the “Revolving Credit Facility”) with a syndicate of large U.S. and international banks and financial institutions. On November 30, 2018, the Company entered into a Third Amendment to the Revolving Credit Facility, which provided for, among other things, the designation as a permitted transaction of the disposition of all or any portion of the ECR business, including in a transaction with WorleyParsons which is consistent in all material respects with the sale transaction announced by the Company on October 21, 2018, and the automatic release of certain designated borrowers party to the Revolving Credit Facility in connection with the closing of the ECR sale (upon the concurrent repayment of any direct borrowings under the Revolving Credit Facility by such designated borrowers). On March 27, 2019, the Company entered into a second amended and restated credit agreement (the "New Credit Agreement") which amended and restated the Revolving Credit Facility by, among other things, (a) extending the maturity date of the credit facility to March 27, 2024, (b) increasing the facility amount to $2.25 billion (with an accordion feature that allows a further increase of the facility amount up to $3.25 billion), (c) eliminating the covenants restricting investments, joint ventures and acquisitions by the Company and its subsidiaries and (d) adjusting the financial covenants to (i) increase the Consolidated Leverage Ratio test until the closing of the ECR sale and (ii) eliminate the net worth covenant upon the removal of the same covenant from the Company’s existing Note Purchase Agreement (defined below). We were in compliance with the covenants under the New Credit Agreement at June 28, 2019. The New Credit Agreement permits the Company to borrow under two separate tranches in U.S. dollars, certain specified foreign currencies, and any other currency that may be approved in accordance with the terms of the New Credit Agreement. The New Credit Agreement also provides for a financial letter of credit sub facility of $400.0 million, permits performance letters of credit, and provides for a $50.0 million sub facility for swing line loans. Letters of credit are subject to fees based on the Company’s Consolidated Leverage Ratio. The Company pays a facility fee of between 0.08% and 0.20% per annum depending on the Company’s Consolidated Leverage Ratio. On September 28, 2017, the Company entered into a $1.5 billion unsecured delayed-draw term loan facility (as amended, the “Term Loan Facility”) with a syndicate of financial institutions as lenders and letter of credit issuers. We incurred loans under the Term Loan Facility on December 15, 2017 in connection with the closing of the CH2M acquisition in order to pay cash consideration for the acquisition, and to pay fees and expenses related to the acquisition and the Term Loan Facility. Amounts outstanding under the Term Loan Facility may be prepaid at the option of the Company without premium or penalty, subject to customary breakage fees in connection with the prepayment of eurocurrency loans. On November 30, 2018, the Company entered into a First Amendment to the Term Loan Facility, which provides for, among other things, the amendment of certain provisions of the Term Loan Facility to permit the ECR Disposition. The Term Loan Facility contains affirmative, negative and financial covenants customary for financings of this type, including, among other things, limitations on certain other indebtedness, investments, liens, acquisitions, dispositions fundamental changes and transactions with affiliates. In addition, the Term Loan Facility contains customary events of default. We were in compliance with the covenants under the Term Loan Facility at June 28, 2019. On March 12, 2018, Jacobs entered into a note purchase agreement (as amended, the "Note Purchase Agreement") with respect to the issuance and sale in a private placement transaction of $500.0 million in the aggregate principal amount of the Company’s senior notes in three series (collectively, the “Senior Notes”). The Note Purchase Agreement provides that if the Company's consolidated leverage ratio exceeds a certain amount, the interest on the Senior Notes may increase by 75 basis points. The Senior Notes may be prepaid at any time subject to a make-whole premium. The sale of the Senior Notes closed on May 15, 2018. The Company used the net proceeds from the offering of Senior Notes to repay certain existing indebtedness and for other general corporate purposes. The Note Purchase Agreement contains affirmative, negative and financial covenants customary for financings of this type, including, among other things, covenants to maintain a minimum consolidated net worth and maximum consolidated leverage ratio and limitations on certain other indebtedness, liens, mergers, dispositions and transactions with affiliates. In addition, the Note Purchase Agreement contains customary events of default. We were in compliance with the covenants under the Note Purchase Agreement at June 28, 2019. We believe the carrying value of the New Credit Agreement, the Term Loan Facility, the Bilateral Term Loan, convertible senior notes assumed in the KeyW acquisition and Other debt outstanding approximates fair value based on the interest rates and scheduled maturities applicable to the outstanding borrowings. The fair value of the Senior Notes is estimated to be $523.5 million at June 28, 2019, based on Level 2 inputs. The fair value is determined by discounting future cash flows using interest rates available for issuances with similar terms and average maturities. The Company has issued $2.3 million in letters of credit under the New Credit Agreement, leaving $2.12 billion of available borrowing capacity under the New Credit Agreement at June 28, 2019. In addition, the Company had issued $356.7 million under separate, committed and uncommitted letter-of-credit facilities for total issued letters of credit of $359.0 million at June 28, 2019.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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