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INDEBTEDNESS (Tables)

6 Months Ended

Jul. 01, 2023

Debt Disclosure [Abstract]

Schedule of Debt Activity, Current and Noncurrent

The following summarizes our debt activity (both current and non-current) for the six months ended July 1, 2023:

			December 31, 2022						Borrowings						Repayments						Other (6)						July 1, 2023
Revolving loans(1)			$	—					$	520.0					$	(420.0)					$	—					$	100.0
Term loans(2)(3)			244.3						300.0						—						(1.2)						543.1
Trade receivables financing arrangement(4)			—						61.0						(31.0)						—						30.0
Other indebtedness(5)			2.5						0.2						(0.3)						0.1						2.5
Total debt			246.8						$	881.2					$	(451.3)					$	(1.1)					675.6
Less: short-term debt			1.8																								132.0
Less: current maturities of long-term debt			2.0																								10.5
Total long-term debt			$	243.0																							$	533.1

    

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(1)While not due for repayment until August 2027 under the terms of our senior credit agreement, we classify within current liabilities the portion of the outstanding balance that we believe will be repaid over the next year, with such amount based on an estimate of cash that is expected to be generated over such period. The revolving loan facility was utilized as the initial funding mechanism for the TAMCO and ASPEQ acquisitions and was partially repaid with the funds borrowed on the Incremental Term Loan (see additional discussion below).

(2)As noted below, we amended our senior credit agreement on April 21, 2023, with the amendment making available an incremental term loan facility (“Incremental Term Loan”) in the amount of $300.0. The proceeds from the Incremental Term Loan were primarily used to fund the acquisition of ASPEQ.

(3)The term loans are repayable in quarterly installments equal to 0.625% of the balance of $545.0, beginning in December 2023 and in each of the first three quarters of 2024, and 1.25% during the fourth quarter of 2024, all quarters of 2025 and 2026, and the first

two quarters of 2027. The remaining balances are payable in full on August 12, 2027. Balances are net of unamortized debt issuance costs of $1.9 and $0.7 at July 1, 2023 and December 31, 2022, respectively.

(4)Under this arrangement, we can borrow, on a continuous basis, up to $50.0, as available. Borrowings under this arrangement are collateralized by eligible trade receivables of certain of our businesses. At July 1, 2023, we had $12.3 of available borrowing capacity under this facility after giving effect to outstanding borrowings of $30.0.

(5)Primarily includes balances under a purchase card program of $2.0 and $1.8 and finance lease obligations of $0.5 and $0.7 at July 1, 2023 and December 31, 2022, respectively. The purchase card program allows for payment beyond the normal payment terms for goods and services acquired under the program. As this arrangement extends the payment of these purchases beyond their normal payment terms through third-party lending institutions, we have classified these amounts as short-term debt. 

(6)“Other” includes the capitalization and amortization of debt issuance costs. During the three months ended July 1, 2023, we capitalized $1.3 of debt issuance costs associated with the Incremental Term Loan.

Schedule of Line of Credit Facilities

The commitment fee rate and interest rate margins for the Incremental Term Loan are as follows:

Consolidated Leverage Ratio						Commitment Fee						Term SOFR Loans						ABR Loans
Less than 2.00 to 1.0						0.225		%				1.500		%				0.500		%
Greater than or equal to 2.00 to 1.0 but less than 3.00 to 1.0						0.250		%				1.625		%				0.625		%
Greater than or equal to 3.00 to 1.0						0.275		%				1.875		%				0.875		%

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Tabular disclosure of information pertaining to short-term and long-debt instruments or arrangements, including but not limited to identification of terms, features, collateral requirements and other information necessary to a fair presentation.

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Tabular disclosure of short-term or long-term contractual arrangements with lenders, including letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line.

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Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
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-URI https://asc.fasb.org//1943274/2147480566/210-10-S99-1

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