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Borrowings and Credit Arrangements | 3 Months Ended
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Dec. 26, 2015
Debt Disclosure [Abstract] |
Borrowings and Credit Arrangements | Borrowings and Credit Arrangements The Company’s borrowings consisted of the following:
| December 26, 2015 |  | September 26, 2015
Current debt obligations, net of debt discount: |  |  |
Term Loan | $ | 74.7 |  |  | $ | 74.6 |
Revolver | 175.0 |  |  | 175.0 |
Convertible Notes | 143.6 |  |  | 142.2 |
Total current debt obligations | $ | 393.3 |  |  | $ | 391.8 |
Long-term debt obligations, net of debt discount: |  |  |
Term Loan | 1,381.4 |  |  | 1,399.8 |
2022 Senior Notes | 987.2 |  |  | 986.7 |
Convertible Notes | 870.5 |  |  | 861.5 |
Total long-term debt obligations | $ | 3,239.1 |  |  | $ | 3,248.0 |
Total debt obligations | $ | 3,632.4 |  |  | $ | 3,639.8 |
Credit Agreement Borrowings outstanding under the Credit Agreement and Prior Credit Agreement for the three months ended December 26, 2015 and December 27, 2014 had weighted-average interest rates of 1.95% and 2.77%, respectively. The interest rate on the outstanding Term Loan borrowing at December 26, 2015 was 2.17%. Interest expense under the Credit Agreement aggregated $10.0 million for the three months ended December 26, 2015, which includes non-cash interest expense of $1.1 million related to the amortization of the deferred issuance costs and accretion of the debt discount. Interest expense under the Prior Credit Agreement aggregated $17.6 million for the three months ended December 27, 2014, which included $3.1 million of non-cash interest expense related to the amortization of the deferred issuance costs and accretion of the debt discount. The Credit Agreement contains total net leverage ratio and interest coverage ratio financial covenants measured as of the last day of each fiscal quarter. These terms, and the calculation thereof, are defined in further detail in the Credit Agreement. As of December 26, 2015, the Company was in compliance with these covenants. On December 24, 2014, the Company voluntarily pre-paid $300.0 million of its Term Loan B facility under its Prior Credit Agreement. 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. 2022 Senior Notes The Company's 5.250% Senior Notes due 2022 (the “2022 Senior Notes”) mature on July 15, 2022 and bear interest at the rate of 5.250% per year, payable semi-annually on January 15 and July 15 of each year, commencing on January 15, 2016. The Company recorded interest expense of $14.0 million in the three month period ended December 26, 2015, which includes non-cash interest expense of $1.0 million related to the amortization of the deferred issuance costs and accretion of the debt discount. The Company used the net proceeds from the 2022 Senior Notes, plus available cash to discharge and redeem all of its outstanding 6.25% Senior Notes due 2020 ("Senior Notes"). The Company recorded interest expense for its Senior Notes of $16.0 million in the three month period ended December 27, 2014, which included non-cash interest expense of $0.4 million related to the amortization of deferred issuance costs. Convertible Notes During the first quarter of fiscal 2016, 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. As a result, holders of 2010 Notes are able to convert their notes during the second quarter of fiscal 2016. As such, the Company classified the $143.6 million carrying value of its 2010 Notes (which have a principal value of $149.9 million) as a current debt obligation. In the event the closing price conditions are met in the second quarter of fiscal 2016 or a future fiscal quarter, the 2010 Notes will be convertible at a holder's option during the immediately following fiscal quarter. As of December 26, 2015, the if-converted value of the 2010 Notes exceeded the aggregate principal amount by approximately $99.9 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 was as follows:
| Three Months Ended
| December 26, 2015 |  | December 27, 2014
Amortization of debt discount | $ | 6.4 |  |  | $ | 8.8 |
Amortization of deferred financing costs | 0.3 |  |  | 0.4 |
Principal accretion | 4.1 |  |  | 3.9 |
Non-cash interest expense | 10.8 |  |  | 13.1 |
2.00% accrued interest (cash) | 3.2 |  |  | 4.8 |
| $ | 14.0 |  |  | $ | 17.9 |

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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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