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Borrowings and Credit Arrangements | 6 Months Ended
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Apr. 01, 2017
Debt Disclosure [Abstract] |
Borrowings and Credit Arrangements | Borrowings and Credit Arrangements The Company’s borrowings consisted of the following:
| April 1, 2017 |  | September 24, 2016
Current debt obligations, net of debt discount: |  |  |
Term Loan | $ | 102.6 |  |  | $ | 83.8 |
Securitization Program | 164.0 |  |  | 200.0 |
Convertible Notes | 782.8 |  |  | 12.2 |
Total current debt obligations | $ | 1,049.4 |  |  | $ | 296.0 |
Long-term debt obligations, net of debt discount: |  |  |
Term Loan | 1,254.1 |  |  | 1,308.2 |
2022 Senior Notes | 979.7 |  |  | 977.7 |
Convertible Notes | — |  |  | 763.5 |
Total long-term debt obligations | $ | 2,233.8 |  |  | $ | 3,049.4 |
Total debt obligations | $ | 3,283.2 |  |  | $ | 3,345.4 |
Credit Agreement Borrowings outstanding under the Credit Agreement for the three and six months ended April 1, 2017 had weighted-average interest rates of 2.28% and 2.17%, respectively. The interest rate on the outstanding Term Loan borrowing at April 1, 2017 was 2.48%. Borrowings outstanding under the Credit Agreement for the three and six months ended March 26, 2016 had weighted-average interest rates of 2.18% and 2.06%, respectively. Interest expense under the Credit Agreement aggregated $9.8 million and $19.5 million for the three and six months ended April 1, 2017, which includes non-cash interest expense of $1.0 million and $2.1 million, respectively, related to the amortization of the deferred issuance costs and accretion of the debt discount. Interest expense under the Credit Agreement aggregated $10.8 million and $20.7 million for the three and six months ended March 26, 2016, which includes $1.1 million and $2.1 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 two financial covenants, a total net leverage ratio and an interest coverage ratio, both of which are 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 April 1, 2017, the Company was in compliance with these covenants. 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 $14.1 million and $29.2 million for the three and six months ended April 1, 2017, respectively, which includes non-cash interest expense of $1.0 million and $2.0 million, respectively, related to the amortization of the deferred issuance costs and accretion of the debt discount. The Company recorded interest expense related to these notes of $13.9 million and $27.9 million in the three and six months ended March 26, 2016, respectively, which included non-cash interest expense of $1.0 million and $1.9 million, respectively, related to the amortization of deferred issuance costs and accretion of the debt discount. Convertible Notes On November 9, 2016, the Company announced that pursuant to the terms of the indenture for the 2.00% Convertible Exchange Senior Notes due 2037, issued in November 2010 (the “2010 Notes”), holders of the 2010 Notes, had the option of requiring the Company to repurchase their 2010 Notes on December 16, 2016 at a repurchase price payable in cash equal to 100% of the original principal amount of the 2010 Notes. None of the 2010 Notes were surrendered for repurchase pursuant to the option. In addition, the Company also announced on November 9, 2016 that, pursuant to the terms of the indenture, it had elected to redeem, on December 19, 2016, all of the then outstanding 2010 Notes at a redemption price payable in cash equal to 100% of the accreted principal amount of the 2010 Notes. Holders of the 2010 Notes also had a right to convert their 2010 Notes. During the first quarter of fiscal 2017, all of the outstanding 2010 Notes were either converted or surrendered for conversion in aggregate principal of $12.3 million, which was paid out over the first and second quarters of fiscal 2017. The payouts included an additional $8.7 million of premium payments due to the Company's stock price exceeding the conversion price. During the second quarter of fiscal 2017, the closing price of the Company's common stock exceeded 130% of the applicable conversion price of its 2012 Notes on at least 20 of the last 30 consecutive trading days of the first calendar quarter ending March 31, 2017. As a result, holders of the 2012 Notes are able to convert their notes during the second calendar quarter of 2017. The carrying amount of the 2012 Note as of April 1, 2017 was $357.2 million (which had a principal value of $363.4 million at April 1, 2017). In the event the closing price conditions are met in the second calendar quarter of 2017 or a future calendar quarter, the 2012 Notes will be convertible at a holder's option during the immediately following calendar quarter. As of April 1, 2017, the if-converted value of the 2012 Notes exceeded the aggregate principal amount by approximately $143.7 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 2012 Notes and, if applicable, shares of its common stock or cash to satisfy the premium based on a calculated daily conversion value. The term "Convertible Notes" refers to the 2010 Notes, the 2012 Notes and the 2013 Notes. Interest expense under the Convertible Notes was as follows:
| Three Months Ended |  | Six Months Ended
| April 1, 2017 |  | March 26, 2016 |  | April 1, 2017 |  | March 26, 2016
Amortization of debt discount | $ | 4.9 |  |  | $ | 5.8 |  |  | $ | 10.1 |  |  | $ | 12.2 |
Amortization of deferred financing costs | 0.2 |  |  | 0.3 |  |  | 0.5 |  |  | 0.6 |
Principal accretion | 4.3 |  |  | 4.1 |  |  | 8.9 |  |  | 8.2 |
Non-cash interest expense | 9.4 |  |  | 10.2 |  |  | 19.5 |  |  | 21.0 |
2.00% accrued interest (cash) | 1.8 |  |  | 2.7 |  |  | 3.8 |  |  | 5.9 |
| $ | 11.2 |  |  | $ | 12.9 |  |  | $ | 23.3 |  |  | $ | 26.9 |
Accounts Receivable Securitization Program Borrowings under the Securitization Program for the three and six month periods ended April 1, 2017 had weighted-average interest rates of 1.47% and 1.36%, respectively. Interest expense under the Securitization Program aggregated $0.7 million and $1.4 million for the three and six month period ended April 1, 2017. The interest rate on the amounts outstanding at April 1, 2017 was 1.68%. During the first and second quarters of fiscal 2017, the Company paid down a net of $12.0 million and $24.0 million, respectively, as its qualified borrowing base decreased. Effective April 21, 2017, the Company entered into an amendment to extend the Securitization Program an additional year to April 20, 2018. The amendment allows the Company to continue to borrow up to $200.0 million and due to structural changes to the terms, the borrowing base has fewer limitations. As a result, on April 25, 2017 the Company borrowed an additional $36.0 million increasing the borrowed amount to the $200.0 million maximum allowed.

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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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