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Borrowings and Credit Arrangements | 6 Months Ended
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Mar. 28, 2015
Debt Disclosure [Abstract] |
Borrowings and Credit Arrangements | Borrowings and Credit Arrangements The Company’s borrowings consisted of the following:
| March 28, 2015 |  | September 27, 2014
Current debt obligations, net of debt discount: |  |  |
Term Loan A | $ | 149.5 |  |  | $ | 99.6 |
Term Loan B | 14.9 |  |  | 14.9 |
Convertible Notes | 417.3 |  |  | — |
Total current debt obligations | 581.7 |  |  | 114.5 |
Long-term debt obligations, net of debt discount: |  |  |
Term Loan A | 697.6 |  |  | 796.7 |
Term Loan B | 816.5 |  |  | 1,120.9 |
Senior Notes | 1,000.0 |  |  | 1,000.0 |
Convertible Notes | 844.0 |  |  | 1,235.6 |
Total long-term debt obligations | 3,358.1 |  |  | 4,153.2 |
Total debt obligations | $ | 3,939.8 |  |  | $ | 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 $3.0 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. During the second quarter of fiscal 2014, the Company, the Guarantors, Goldman Sachs, and the Lenders entered into Refinancing Amendment No. 3 to the Credit Agreement and reduced the applicable interest rates. In connection with this refinancing, the Company voluntarily prepaid $25.0 million of the new senior secured tranche B term loan facility (the "Amended Term Loan B"). Pursuant to ASC 470, the accounting for this refinancing was evaluated on a creditor-by-creditor basis to determine whether each transaction should be accounted for as a modification or extinguishment. Certain creditors under the Credit Agreement did not participate in this refinancing transaction and ceased being creditors of the Company, and certain creditors reduced their positions. As a result, the Company recorded a debt extinguishment loss of $4.4 million in the second quarter of fiscal 2014 to write-off the pro-rata amount of unamortized debt discount and deferred issuance costs related to these creditors. For the remainder of the creditors, this transaction has been accounted for as a modification because the present value of the cash flows on a creditor-by-creditor basis between the two debt instruments was less than 10%. Pursuant to ASC 470, subtopic 50-40, third-party costs of $1.0 million related to this transaction were expensed. Borrowings outstanding under the Credit Agreement for the three and six months ended March 28, 2015 had weighted-average interest rates of 2.62% and 2.70%, respectively. The interest rates on the outstanding Term Loan A and Term Loan B borrowings at March 28, 2015 were 1.92% and 3.25%, respectively. Interest expense under the Credit Agreement totaled $14.4 million and $31.9 million for the three and six months ended March 28, 2015, respectively, which includes non-cash interest expense of $2.7 million and $5.8 million related to the amortization of the deferred issuance costs and accretion of the debt discount, respectively. Interest expense totaled $19.2 million and $39.6 million for the three and six months ended March 29, 2014, respectively, which includes non-cash interest expense of $3.2 million and $6.5 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 March 28, 2015, 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 and $32.0 million in both the three and six month periods ended March 28, 2015 and March 29, 2014, respectively, which includes non-cash interest expense of $0.4 million and $0.8 million in both the three and six month periods ended March 28, 2015 and March 29, 2014, respectively, related to the amortization of the deferred issuance costs. Convertible Notes During the second quarter of fiscal 2015, the closing price of the Company's common stock exceeded 130% of the applicable conversion price of its 2010 Notes on at least 20 of the last 30 consecutive trading days of the quarter; therefore, holders of 2010 Notes may convert their notes during the third quarter of fiscal 2015. As such, the Company classified the $417.3 million carrying value of its 2010 Notes (which have a principal value of $450.0 million) as a current debt obligation. In the event the closing price conditions are met in the third quarter of fiscal 2015 or a future fiscal quarter, the 2010 Notes will be convertible at a holder's option during the immediately following fiscal quarter. As of March 28, 2015, the if-converted value of the 2010 Notes exceeded the aggregate principal amount by approximately $200.0 million. It is the Company's current intent and policy to settle any conversion of the Convertible Notes as if the Company had elected to make either a net share settlement or all cash election, such that upon conversion, the Company intends to pay the holders in cash for the principal amount of the 2010 Notes and, if applicable, shares of its common stock or cash to satisfy the premium based on a calculated daily conversion value. Interest expense under the Convertible Notes is as follows:
| Three Months Ended |  | Six Months Ended
| March 28, 2015 |  | March 29, 2014 |  | March 28, 2015 |  | March 29, 2014
Amortization of debt discount | $ | 9.0 |  |  | $ | 8.3 |  |  | $ | 17.8 |  |  | $ | 19.9 |
Amortization of deferred financing costs | 0.4 |  |  | 0.4 |  |  | 0.9 |  |  | 1.0 |
Principal accretion | 4.0 |  |  | 3.8 |  |  | 7.9 |  |  | 7.6 |
Non-cash interest expense | 13.4 |  |  | 12.5 |  |  | 26.6 |  |  | 28.5 |
2.00% accrued interest (cash) | 4.8 |  |  | 4.8 |  |  | 9.5 |  |  | 12.9 |
| $ | 18.2 |  |  | $ | 17.3 |  |  | $ | 36.1 |  |  | $ | 41.4 |

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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 SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 3: 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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