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Debt | 6 Months Ended
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Jul. 03, 2016
Debt Disclosure [Abstract] |
Debt | 8. Debt Following is a summary of the Company’s debt:
In Thousands |  | Maturity |  | Interest Rate |  |  | Interest Paid |  | July 3, 2016 |  |  | January 3, 2016 |  |  | June 28, 2015 |
Revolving credit facility |  | 2019 |  | Variable |  |  | Varies |  | $ | 75,000 |  |  | $ | - |  |  | $ | 290,000 |
Senior Notes |  | 2016 |  |  | 5.00% |  |  | Semi-annually |  |  | - |  |  |  | 164,757 |  |  |  | 164,757 |
Senior Notes |  | 2019 |  |  | 7.00% |  |  | Semi-annually |  |  | 110,000 |  |  |  | 110,000 |  |  |  | 110,000 |
Senior Notes |  | 2025 |  |  | 3.80% |  |  | Semi-annually |  |  | 350,000 |  |  |  | 350,000 |  |  |  | - |
Term Loan |  | 2021 |  | Variable |  |  | Varies |  |  | 300,000 |  |  |  | - |  |  |  | - |
Unamortized discount on Senior Notes |  | 2019 |  |  |  |  |  |  |  |  | (683 | ) |  |  | (792 | ) |  |  | (897 | )
Unamortized discount on Senior Notes |  | 2025 |  |  |  |  |  |  |  |  | (82 | ) |  |  | (86 | ) |  |  | - |
Debt issuance costs |  |  |  |  |  |  |  |  |  |  | (4,417 | ) |  |  | (4,251 | ) |  |  | (1,749 | )
Total debt |  |  |  |  |  |  |  |  |  |  | 829,818 |  |  |  | 619,628 |  |  |  | 562,111 |
Less: Current portion of debt |  |  |  |  |  |  |  |  |  |  | - |  |  |  | - |  |  |  | - |
Long-term debt |  |  |  |  |  |  |  |  |  | $ | 829,818 |  |  | $ | 619,628 |  |  | $ | 562,111 |
The Company had capital lease obligations of $52.3 million, $55.8 million, and $59.2 million as of July 3, 2016, January 3, 2016, and June 28, 2015, respectively. The Company mitigates its financing risk by using multiple financial institutions and enters into credit arrangements only with institutions with investment grade credit ratings. The Company monitors counterparty credit ratings on an ongoing basis. In October 2014, the Company entered into a $350 million five-year unsecured revolving credit facility (the “Revolving Credit Facility”). In April 2015, the Company exercised the accordion feature of the Revolving Credit Facility, thereby increasing the aggregate availability by $100 million to $450 million. The Revolving Credit Facility has a scheduled maturity date of October 16, 2019 and up to $50 million is available for the issuance of letters of credit. Borrowings under the Revolving Credit Facility bear interest at a floating base rate or a floating Eurodollar rate plus an applicable margin, dependent on the Company’s credit rating at the time of borrowing. At the Company’s current credit ratings, the Company must pay an annual facility fee of 0.15% of the lenders’ aggregate commitments under the Revolving Credit Facility. The Revolving Credit Facility includes two financial covenants: a cash flow/fixed charges ratio and a funded indebtedness/cash flow ratio, each as defined in the agreement. The Company was in compliance with these covenants at July 3, 2016. These covenants do not currently, and the Company does not anticipate they will, restrict its liquidity or capital resources. In November 2015, the Company issued $350 million of unsecured 3.8% Senior Notes due 2025. The notes were issued at 99.975% of par, which resulted in a discount on the notes of approximately $0.1 million. Total debt issuance costs for these notes totaled $3.2 million. The proceeds plus cash on hand were used to repay outstanding borrowings under the Revolving Credit Facility. The Company refinanced its $100 million of senior notes, which matured in April 2015, with borrowings under the Company’s Revolving Credit Facility. On June 7, 2016, the Company entered into a term loan agreement for a senior unsecured term loan facility (the “Term Loan Facility”) in the aggregate principal amount of $300 million, maturing June 7, 2021. The Company may request additional term loans under the agreement, provided the Company’s aggregate borrowings under the Term Loan Facility do not exceed $500 million. Borrowings under the Term Loan Facility bear interest at a floating base rate or a floating Eurodollar rate plus an applicable margin, dependent on the Company’s credit rating, at the Company’s option. The Term Loan Facility includes two financial covenants: a consolidated cash flow/fixed charges ratio and a consolidated funded indebtedness/cash flow ratio, each as defined in the agreement. The Company was in compliance with these covenants as of July 3, 2016. These covenants do not currently, and the Company does not anticipate they will, restrict its liquidity or capital resources. The Company used $210 million of the proceeds from the Term Loan Facility to repay outstanding indebtedness under the Revolving Credit Facility. The Company then used the remaining proceeds, as well as borrowings under the Revolving Credit Facility, to repay the $164.8 million of Senior Notes that matured on June 15, 2016.

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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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