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Borrowings and Credit Arrangements | 9 Months Ended
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Jun. 28, 2025
Debt Disclosure [Abstract] |
Borrowings and Credit Arrangements | Borrowings and Credit Arrangements The Company’s borrowings consisted of the following:
| June 28, 2025 |  | September 28, 2024
Current debt obligations, net of debt discount and deferred issuance costs: |  |  |
Term Loan* | $ | — |  |  | $ | 37.5 |
Total current debt obligations | $ | — |  |  | $ | 37.5 |
Long-term debt obligations, net of debt discount and issuance costs: |  |  |
Term Loan | $ | 1,168.5 |  |  | $ | 1,158.7 |
2028 Senior Notes | 398.1 |  |  | 397.6 |
2029 Senior Notes | 942.4 |  |  | 940.8 |
Total long-term debt obligations | $ | 2,509.0 |  |  | $ | 2,497.1 |
Total debt obligations | $ | 2,509.0 |  |  | $ | 2,534.6 |
*The Term Loan debt obligation as of June 28, 2025 reflects entering into the amended 2021 Credit Agreement effective July 15, 2025 (as discussed below), which resulted in a change in the principal maturity schedule. 2021 Credit Agreement On September 27, 2021, the Company and certain of its subsidiaries refinanced its then existing term loan and revolving credit facility with Bank of America, N.A. in its capacity as Administrative Agent, Swing Line Lender and L/C Issuer, and certain other lenders (the “2018 Credit Agreement”) by entering into a Refinancing Amendment (the “2021 Credit Agreement”). On August 22, 2022, the Company further amended the 2021 Credit Agreement to address the planned phase out of LIBOR by the UK Financial Conduct Authority. Under this amendment, the interest rates applicable to the loans under the 2021 Credit Agreement denominated in U.S. dollars were converted to a variant of the secured overnight financing rate (“SOFR”), as established from time to time by the Federal Reserve Bank of New York, plus a corresponding spread. The 2021 Credit Agreement provided a $1.5 billion secured term loan facility (the “2021 Term Loan”) and a $2.0 billion revolving credit facility (the “2021 Revolver”). As of June 28, 2025, the principal amount outstanding under the 2021 Term Loan was $1.17 billion, and the interest rate was 5.42% per annum. No amounts were outstanding under the 2021 Revolver, and the full amount was available to be borrowed by the Company. Interest expense, weighted average interest rates, and the interest rate at the end of period under the 2021 Credit Agreement were as follows:
| Three Months Ended |  | Nine Months Ended
| June 28, 2025 |  | June 29, 2024 |  | June 28, 2025 |  | June 29, 2024
Interest expense | $ | 17.5 |  |  | $ | 21.1 |  |  | $ | 54.0 |  |  | $ | 64.9 |
Weighted average interest rate | 5.42 | % |  | 6.43 | % |  | 5.50 | % |  | 6.43 | %
Interest rate at end of period | 5.42 | % |  | 6.44 | % |  | 5.42 | % |  | 6.44 | %
The Company has entered into interest rate swap agreements, which fixed the SOFR component of the variable interest rate on a portion of the aggregate principal under the 2021 Term Loan. Under these interest rate swap agreements, the Company received $1.7 million and $5.0 million during the three and nine months ended June 28, 2025, respectively, and $2.4 million and $14.4 million during the three and nine months ended June 29, 2024, respectively. These amounts were recorded as a reduction to interest expense in the Statements of Income. See Note 11 for additional information. The 2021 Credit Agreement contains two financial covenants; a total leverage ratio and an interest coverage ratio, both of which are measured as of the last day of each fiscal quarter. These terms, and calculations thereof, are defined in further detail in the 2021 Credit Agreement. As of June 28, 2025, the Company was in compliance with these covenants. 2025 Credit Agreement - Subsequent Event On July 15, 2025, the Company, together with certain of its subsidiaries, refinanced its 2021 Term Loan and 2021 Revolver by entering into Refinancing Amendment No. 4 and Amendment to Pledge and Security Agreement (“2025 Credit Agreement”) to its Amended and Restated Credit and Guaranty Agreement, dated as of October 3, 2017 (as amended, restated, supplemented or otherwise modified from time to time prior to Refinancing Amendment No.4) with Bank of America, N.A. in its capacity as Administrative Agent, Swing Line Lender and L/C Issuer, and certain other lenders. All of the proceeds under the 2025 Term Loan were used to repay the amounts outstanding. Borrowings under the 2025 Credit Agreement are secured by first-priority liens on, and a first-priority security interest in (in each case subject to certain liens permitted under the 2025 Credit Agreement), substantially all of the Company's U.S. assets of the Subsidiary Guarantors. These liens are subject to release during the term of the facilities if the Company is able to achieve certain corporate or corporate family ratings and other conditions are met. The credit facilities under the 2025 Credit Agreement consist of: •A $1.17 billion secured term loan (“2025 Term Loan”) with a stated maturity date of July 15, 2030; and •A secured revolving credit facility (the “2025 Revolver”) under which the Borrowers may borrow up to $1.25 billion, subject to certain sublimits, with a stated maturity date of July 15, 2030. Borrowings under the 2025 Credit Agreement, other than Swing Line Loans, bear interest, at the Company's option, at the Base Rate, at the Alternative Currency Daily Rate, at the Alternative Currency Term Rate, or as Term SOFR Loans, in each case plus the Applicable Rate (in each case, as defined in Refinancing Amendment No.4). The Applicable Rate with respect to the Base Rate, the Alternative Currency Daily Rate and the Alternative Currency Term Rate and for Daily SOFR Loans and Term SOFR Loans is subject to specified changes depending on the Total Net Leverage Ratio (as defined in Refinancing Amendment No.4). The Term Loan borrowings initially bear interest at an annual rate equal to Term SOFR plus 1.10%. The Company is required to pay a quarterly commitment fee on the undrawn committed amount available under the 2025 Revolver. The per annum rate of the commitment fee is initially 0.15% and, after September 27, 2025, is subject to adjustment to a maximum of 0.20% per annum based on the Company’s Total Net Leverage Ratio. There were no changes to the terms of the 2025 Credit Agreement that impact the accounting for the existing interest rate swap contract, and therefore, the interest rate swap continues to be highly effective at offsetting the cash flows being hedged. Please refer to Note 11 for further details. 2028 Senior Notes As of June 28, 2025, the Company had 4.625% Senior Notes due 2028 (the “2028 Senior Notes”) outstanding in the aggregate principal balance of $400 million. The 2028 Senior Notes are general senior unsecured obligations of the Company and are guaranteed on a senior unsecured basis by certain of the Company’s domestic subsidiaries and mature on February 1, 2028. 2029 Senior Notes As of June 28, 2025, the Company had 3.250% Senior Notes due 2029 (the “2029 Senior Notes”) outstanding in the aggregate principal balance of $950 million. The 2029 Senior Notes are general senior unsecured obligations of the Company and are guaranteed on a senior unsecured basis by certain of the Company’s domestic subsidiaries and mature on February 15, 2029. Interest expense for the 2029 Senior Notes and 2028 Senior Notes was as follows:
|  |  | Three Months Ended |  | Nine Months Ended
| Interest Rate |  | June 28, 2025 |  | June 29, 2024 |  | June 28, 2025 |  | June 29, 2024
2028 Senior Notes | 4.625 | % |  | $ | 4.8 |  |  | $ | 4.8 |  |  | $ | 14.4 |  |  | $ | 14.4 |
2029 Senior Notes | 3.250 | % |  | 8.2 |  |  | 8.2 |  |  | 24.6 |  |  | 24.7 |
Total |  |  | $ | 13.0 |  |  | $ | 13.0 |  |  | $ | 39.0 |  |  | $ | 39.1 |

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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/disclosureRef -Topic 470 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481544/470-10-50-6 Reference 2: 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