Borrowings and Credit Arrangements

3 Months Ended

Dec. 27, 2014

The Company’s borrowings consisted of the following:



	December 27, 2014		September 27, 2014
Current debt obligations, net of debt discount:
Term Loan A	$	124.5	$	99.6
Term Loan B	14.9		14.9
Total current debt obligations	139.4		114.5
Long-term debt obligations, net of debt discount:
Term Loan A	747.1		796.7
Term Loan B	820.0		1,120.9
Senior Notes	1,000.0		1,000.0
Convertible Notes	1,248.3		1,235.6
Total long-term debt obligations	3,815.4		4,153.2
Total debt obligations	$	3,954.8	$	4,267.7

Credit Agreement

On December 24, 2014, the Company voluntarily pre-paid $300.0 million of its Term Loan B facility. Pursuant to ASC 470, Debt (ASC 470), the Company recorded a debt extinguishment loss of $6.7 million in the first quarter of fiscal 2015 to write-off the pro-rata amount of unamortized debt discount and deferred issuance costs related to this voluntary prepayment.

On October 31, 2013, the Company voluntarily pre-paid $100.0 million of its Term Loan B facility, which was reflected in current debt obligations as of September 28, 2013. Pursuant to ASC 470, the Company recorded a debt extinguishment loss of $2.9 million in the first quarter of fiscal 2014 to write-off the pro-rata amount of unamortized debt discount and deferred issuance costs related to this voluntary prepayment.

Borrowings outstanding under the Credit Agreement for the three months ended December 27, 2014 and December 28, 2013 had weighted-average interest rates of 2.77% and 3.06%, respectively. The interest rates on the outstanding Term Loan A and Term Loan B borrowings at December 27, 2014 were 2.16% and 3.25%, respectively. Interest expense under the Credit Agreement totaled $17.6 million and $20.4 million for the three months ended December 27, 2014 and December 28, 2013, respectively, which includes non-cash interest expense of $3.1 million and $3.3 million related to the amortization of the deferred issuance costs and accretion of the debt discount, respectively.

The credit facilities contain two financial ratio covenants measured as of the last day of each fiscal quarter: a total net leverage ratio and an interest coverage ratio. As of December 27, 2014, the Company was in compliance with these covenants.

Senior Notes

The Company’s 6.25% senior notes due 2020 (the “Senior Notes”) mature on August 1, 2020 and bear interest at the rate of 6.25% per year, payable semi-annually on February 1 and August 1 of each year, commencing on February 1, 2013. The Company recorded interest expense of $16.0 million in the three month periods ended December 27, 2014 and December 28, 2013, which includes non-cash interest expense of $0.4 million in the three month periods ended December 27, 2014 and December 28, 2013 related to the amortization of the deferred issuance costs.

Convertible Notes

Interest expense under the Convertible Notes is as follows:



	Three Months Ended
	December 27, 2014		December 28, 2013
Amortization of debt discount	$	8.8	$	11.5
Amortization of deferred financing costs	0.4		0.7
Principal accretion	3.9		3.8
Non-cash interest expense	13.1		16.0
2.00% accrued interest (cash)	4.8		8.1
	$	17.9	$	24.1

- 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.

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