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Debt | 9 Months Ended
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Jan. 01, 2021
Debt Disclosure [Abstract] |
Debt | Debt The following table summarizes components of our debt:
(In millions, except percentages) | January 1, 2021 |  | April 3, 2020 |  | Effective Interest Rate
4.2% Senior Notes due September 15, 2020 | $ | — |  |  | $ | 750 |  |  | 4.25 | %
New 2.5% Convertible Senior Notes due April 1, 2022 | 250 |  |  | 250 |  |  | 2.63 | %
3.95% Senior Notes due June 15, 2022 | 400 |  |  | 400 |  |  | 4.05 | %
2.0% Convertible Senior Notes due August 15, 2022 | — |  |  | 625 |  |  | 2.66 | %
New 2.0% Convertible Senior Notes due August 15, 2022 | 625 |  |  | 625 |  |  | 2.62 | %
Term Loan due November 4, 2024 | 500 |  |  | 500 |  |  | LIBOR plus (1)
Delayed Draw Term Loan due November 4, 2024 | 750 |  |  | — |  |  | LIBOR plus (1)
5.0% Senior Notes due April 15, 2025 | 1,100 |  |  | 1,100 |  |  | 5.23 | %
Total principal amount | 3,625 |  |  | 4,250 |  |  |
Less: unamortized discount and issuance costs | (20) |  |  | (29) |  |  |
Total debt | 3,605 |  |  | 4,221 |  |  |
Less: current portion | (63) |  |  | (756) |  |  |
Total long-term debt | $ | 3,542 |  |  | $ | 3,465 |  |  |
(1)The term loans bear interest at a rate equal to the London Interbank Offered Rate (LIBOR) plus a margin based either on the current debt rating of our non-credit-enhanced, senior unsecured long-term debt or consolidated adjusted leverage as defined in the underlying loan agreement. The interest rates for the outstanding term loans are as follows:
| January 1, 2021 |  | April 3, 2020
Term Loan due November 4, 2024 | 1.56 | % |  | 2.88 | %
Delayed Draw Term Loan due November 4, 2024 | 1.56 | % |  | N/A
As of January 1, 2021, the future contractual maturities of debt by fiscal year are as follows:
(In millions) |
Remainder of 2021 | $ | 16 |
2022 | 312 |
2023 | 1,088 |
2024 | 62 |
2025 | 1,047 |
Thereafter | 1,100 |
Total future maturities of debt | $ | 3,625 |
Repayments of Convertible Senior Notes In February 2020, we exchanged $250 million of our 2.5% Convertible Notes and $625 million of our 2.0% Convertible Notes for new convertible notes of the same principal amounts and certain cash consideration. In May 2020, we settled the $625 million principal and conversion rights of the 2.0% Convertible Senior Notes in cash. The aggregate settlement amount of $1,179 million was based on $19.25 per underlying share into which the 2.0% Convertible Notes were convertible. In addition, we paid $3 million of accrued and unpaid interest through the date of settlement. The repayments resulted in an adjustment to stockholders’ equity of $581 million and a gain on extinguishment of $20 million. As of January 1, 2021 and April 3, 2020, the Convertible Senior Notes consisted of the following:
| January 1, 2021 |  | April 3, 2020
(In millions) | New 2.5% Convertible Notes |  | New 2.0% Convertible Notes |  | New 2.5% Convertible Notes |  | New 2.0% Convertible Notes |  | 2.0% Convertible Notes
Liability components: |  |  |  |  |  |  |  |  |
Principal | $ | 250 |  |  | $ | 625 |  |  | $ | 250 |  |  | $ | 625 |  |  | $ | 625 |
Unamortized discount and issuance costs | — |  |  | (6) |  |  | (1) |  |  | (9) |  |  | (6) |
Net carrying amount | $ | 250 |  |  | $ | 619 |  |  | $ | 249 |  |  | $ | 616 |  |  | $ | 619 |
Equity component net of tax | $ | 43 |  |  | $ | 56 |  |  | $ | 43 |  |  | $ | 56 |  |  | $ | 12 |
Based on the closing price of our common stock of $20.78 on January 1, 2021, the if-converted value of the New 2.5% Convertible Notes and the New 2.0% Convertible Notes exceeded the principal amount by approximately $60 million and $11 million, respectively. The following table sets forth total interest expense recognized related to our Convertible Senior Notes:
| Three Months Ended |  | Nine Months Ended
(In millions) | January 1, 2021 |  | January 3, 2020 |  | January 1, 2021 |  | January 3, 2020
Contractual interest expense | $ | 5 |  |  | $ | 9 |  |  | $ | 15 |  |  | $ | 28 |
Amortization of debt discount and issuance costs | $ | 1 |  |  | $ | 3 |  |  | $ | 3 |  |  | $ | 11 |
Payments in lieu of conversion price adjustments (1) | $ | 2 |  |  | $ | 5 |  |  | $ | 7 |  |  | $ | 5 |
(1) Payments in lieu of conversion price adjustments consist of amounts paid to holders of the Convertible Senior Notes when our quarterly dividend to our common stockholders exceeds the amounts defined in the Convertible Senior Notes agreements. Delayed draw term loan On September 14, 2020, we drew a term loan of $750 million (the Delayed Draw Term Loan) under an existing credit facility agreement. The Delayed Draw Term Loan bears i nterest at LIBOR, as adjusted for statutory reserves, plus a margin ranging from 1.125% to 1.75%. The pr incipal amount of the Delayed Draw Term Loan is repayable in quarterly installments on the last business day of each calendar quarter, commencing with the quarter ended March 31, 2021 in an amount equal to 1.25% of the aggregate principal amount that was outstanding immediately after the borrowings of the Delayed Draw Term Loan and in the outstanding principal amount upon the November 2024 maturity date. We may voluntarily repay outstanding principal balances without penalty. Repayments of Senior Notes On September 15, 2020, we fully repaid the principal and accrued interest under the 4.2% Senior Notes due September 2020, which had an aggregate principal amount outstanding of $750 million. Revolving credit facility We have a revolving line of credit of $1,000 million through November 2024. Borrowings under the revolving line of credit bear interest at a floating rate based on our debt ratings and our consolidated leverage ratios. The unused revolving line of credit is subject to a commitment fee ranging from 0.125% to 0.30% per annum. As of January 1, 2021 and April 3, 2020, there were no borrowings outstanding under our revolving credit facilities. Debt covenant compliance Our term loan and revolving credit facility agreement contains customary representations and warranties, non-financial covenants for financial reporting, affirmative and negative covenants, including a covenant that we maintain a consolidated leverage ratio of not more than 5.25 to 1.0, or 5.75 to 1.0 if we acquire assets or business in an aggregate amount greater than $250 million, and restrictions on indebtedness, liens, investments, stock repurchases, and dividends (with exceptions permitting our regular quarterly dividend and other specific capital returns). As of January 1, 2021, we were in compliance with all debt covenants.

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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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