XML 24 R15.htm IDEA: XBRL DOCUMENT v3.22.2
Debt
 6 Months Ended
Jun. 25, 2022
Debt [Abstract]  
Debt
Note 7 – Debt
Bank Credit Lines
Bank credit lines consisted of the following:
June 25,
December 25,
2022
2021
Revolving credit agreement
$
-
$
-
Other short-term bank credit lines
85
51
Total
 
$
85
$
51
Revolving Credit Agreement
On
August 20, 2021
, we entered into a new $
1
 
billion revolving credit agreement (the “Credit Agreement”).
 
This
facility which matures on
August 20, 2026
 
replaced our $
750
 
million revolving credit facility which was scheduled
to mature in April 2022.
 
The interest rate is based on the USD LIBOR plus a spread based on our
 
leverage ratio at
the end of each financial reporting quarter.
 
Most LIBOR rates have been discontinued after December 31,
 
2021,
while the remaining LIBOR rates will be discontinued immediately
 
after June 30, 2023.
 
We do not expect the
discontinuation of LIBOR as a reference rate in our debt agreements
 
to have a material adverse effect on our
financial position or to materially affect our interest expense.
 
The Credit Agreement also requires, among other
things, that we maintain certain maximum leverage ratios.
 
Additionally, the Credit Agreement contains customary
representations, warranties and affirmative covenants as well as customary negative
 
covenants, subject to
negotiated exceptions, on liens, indebtedness, significant corporate changes
 
(including mergers), dispositions and
certain restrictive agreements.
 
As of June 25, 2022 and December 25, 2021, we had
no
 
borrowings under this
revolving credit facility.
 
As of June 25, 2022 and December 25, 2021, there were
 
$
9
 
million and $
9
 
million of
letters of credit, respectively, provided to third parties under the credit facility.
Other Short-Term Bank Credit
 
Lines
As of June 25, 2022 and December 25, 2021, we had various other short-term
 
bank credit lines available, of which
$
85
 
million and $
51
 
million, respectively, were outstanding.
 
At June 25, 2022 and December 25, 2021, borrowings
under all of these credit lines had a weighted average interest rate
 
of
9.90
% and
10.44
%, respectively.
Long-term debt
Long-term debt consisted of the following:
June 25,
December 25,
2022
2021
Private placement facilities
 
$
699
$
706
U.S. trade accounts receivable securitization
60
105
Various
 
collateralized and uncollateralized loans payable with interest,
in varying installments through 2023 at interest rates
ranging from
0.00
% to
3.50
% at June 25, 2022 and
 
ranging from
2.62
% to
4.27
% at December 25, 2021
7
4
Finance lease obligations
7
7
Total
 
773
822
Less current maturities
 
(4)
(11)
Total long-term debt
 
$
769
$
811
Private Placement Facilities
Our private placement facilities were amended on
October 20, 2021
 
to include
four
 
(previously
three
) insurance
companies, have a total facility amount of $
1.5
 
billion (previously $
1.0
 
billion), and are available on an
uncommitted basis at fixed rate economic terms to be agreed upon at
 
the time of issuance, from time to time
through
October 20, 2026
 
(previously
June 23, 2023
).
 
The facilities allow us to issue senior promissory notes to
the lenders at a fixed rate based on an agreed upon spread over applicable
 
treasury notes at the time of
issuance.
 
The term of each possible issuance will be selected by us and
 
can range from
five
 
to
15 years
 
(with an
average life no longer than
12 years
).
 
The proceeds of any issuances under the facilities will be used for
 
general
corporate purposes, including working capital and capital expenditures,
 
to refinance existing indebtedness, and/or
to fund potential acquisitions.
 
The agreements provide, among other things, that we maintain
 
certain maximum
leverage ratios, and contain restrictions relating to subsidiary indebtedness,
 
liens, affiliate transactions, disposal of
assets and certain changes in ownership.
 
These facilities contain make-whole provisions in the event that we
 
pay
off the facilities prior to the applicable due dates.
The components of our private placement facility borrowings as
 
of June 25, 2022 are presented in the following
table:
Amount of
Borrowing
Borrowing
 
Date of Borrowing
Outstanding
Rate
Due Date
January 20, 2012
$
50
3.45
%
January 20, 2024
December 24, 2012
50
3.00
December 24, 2024
June 16, 2017
100
3.42
June 16, 2027
September 15, 2017
100
3.52
September 15, 2029
January 2, 2018
100
3.32
January 2, 2028
September 2, 2020
100
2.35
September 2, 2030
June 2, 2021
100
2.48
June 2, 2031
June 2, 2021
100
2.58
June 2, 2033
Less: Deferred debt issuance costs
(1)
Total
$
699
U.S. Trade Accounts Receivable Securitization
We have a facility agreement based on the securitization of our U.S. trade accounts receivable that is structured as
an asset-backed securitization program with pricing committed for up
 
to
three years
.
 
Our current facility, which
had a purchase limit of $
350
 
million, was scheduled to expire on
April 29, 2022
.
 
On October 20, 2021, we
amended our U.S. trade accounts receivable securitization facility to
 
increase the purchase limit to $
450
 
million
with
two
 
banks as agents and extend the expiration date to
October 18, 2024
.
 
As of June 25, 2022 and December
25, 2021, the borrowings outstanding under this securitization facility were
 
$
60
 
million and $
105
 
million,
respectively.
 
At June 25, 2022, the interest rate on borrowings under this facility
 
was based on the asset-backed
commercial paper rate of
1.43
% plus
0.75
%, for a combined rate of
2.18
%.
 
At December 25, 2021, the interest rate
on borrowings under this facility was based on the asset-backed commercial
 
paper rate of
0.19
% plus
0.75
%, for a
combined rate of
0.94
%.
If our accounts receivable collection pattern changes due to customers
 
either paying late or not making payments,
our ability to borrow under this facility may be reduced.
We are required to pay a commitment fee of
30
 
to
35
 
basis points depending upon program utilization.