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Debt
 3 Months Ended
Mar. 29, 2025
Debt [Abstract]  
Debt
Note 8 – Debt
Bank Credit Lines
Bank credit lines consisted of the following:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 29,
December 28,
2025
2024
Revolving credit agreement
$
200
$
-
Other short-term bank credit lines
667
650
Total
$
867
$
650
Revolving Credit Agreement
On
August 20, 2021
, we entered into a $
1.0
 
billion revolving credit agreement (the “Revolving Credit Agreement”)
which was subsequently amended and restated on
July 11, 2023
 
to extend the maturity date to
July 11, 2028
 
and
update the interest rate provisions to reflect the current market approach
 
for a multicurrency facility.
 
The interest
rate on this revolving credit facility is based on Term Secured Overnight Financing Rate (“
Term SOFR
”) plus a
spread based on our leverage ratio at the end of each financial reporting
 
quarter.
 
As of March 29, 2025 the interest
rate on this revolving credit facility was
4.25
% plus
1.17
% for a combined rate of
5.42
%.
 
As of December 28,
2024 the interest rate on this revolving credit facility was
4.45
% plus
1.18
% for a combined rate of
5.63
%.
 
The Revolving Credit Agreement requires, among other things, that we
 
maintain certain maximum leverage ratios.
 
Additionally, the Revolving 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 March 29,
2025 and December 28, 2024, we had $
200
 
million and $
0
 
million in borrowings, respectively, under this revolving
credit facility.
 
During the three months ended March 29, 2025, the average
 
outstanding balance under the
Revolving Credit Agreement was approximately $
67
 
million.
 
As of March 29, 2025 and December 28, 2024, there
were $
11
 
million and $
11
 
million of letters of credit, respectively, provided to third parties under the Revolving
Credit Agreement.
Other Short-Term Bank Credit
 
Lines
As of March 29, 2025 and December 28, 2024, we had various other short-term
 
bank credit lines available, in
various currencies, with a maximum borrowing capacity of $
786
 
million and $
790
 
million, respectively.
 
As of
March 29, 2025 and December 28, 2024, $
667
 
million and $
650
 
million, respectively, were outstanding.
 
During
the three months ended March 29, 2025, the average outstanding balances
 
under our various other short-term bank
credit lines was approximately $
666
 
million.
 
As of March 29, 2025 and December 28, 2024, borrowings under
other short-term bank credit lines had weighted average interest rates
 
of
5.17
% and
5.35
%, respectively.
Long-term debt
Long-term debt consisted of the following:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 29,
December 28,
2025
2024
Private placement facilities
 
$
975
$
975
Term loan
702
712
U.S. trade accounts receivable securitization
300
150
Various
 
collateralized and uncollateralized loans payable with interest,
in varying installments through 2031 at interest rates
from
0.00
% to
9.42
% at March 29, 2025 and
from
0.00
% to
9.42
% at December 28, 2024
41
43
Finance lease obligations
6
6
Total
 
2,024
1,886
Less current maturities
(56)
(56)
Total long-term debt
 
$
1,968
$
1,830
Private Placement Facilities
Our private placement facilities provided by
four
 
insurance companies have a total facility amount of $
1.5
 
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
.
 
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
 
March 29, 2025, which have a weighted average
interest rate of
3.70
% are presented in the following table:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount of
Date of
 
Borrowing
Borrowing
 
Borrowing
Outstanding
Rate
Due Date
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
May 4, 2023
75
4.79
May 4, 2028
May 4, 2023
75
4.84
May 4, 2030
May 4, 2023
75
4.96
May 4, 2033
May 4, 2023
150
4.94
May 4, 2033
Total
$
975
The components of our private placement facility borrowings as of December
 
28, 2024, which have a weighted
average interest rate of
3.70
% are presented in the following table:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount of
Date of
 
Borrowing
Borrowing
 
Borrowing
Outstanding
Rate
Due Date
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
May 4, 2023
75
4.79
May 4, 2028
May 4, 2023
75
4.84
May 4, 2030
May 4, 2023
75
4.96
May 4, 2033
May 4, 2023
150
4.94
May 4, 2033
Total
$
975
Term Loan
On July 11, 2023, we entered into a
three-year
 
$
750
 
million term loan credit agreement (the “Term Credit
Agreement”).
 
The interest rate on this term loan is based on the
Term SOFR
 
plus a spread based on our leverage
ratio at the end of each financial reporting quarter.
 
This term loan matures on
July 11, 2026
.
 
We are required to
make quarterly payments of $
9
 
million from September 2024 through June 2026, with the remaining
 
balance due in
July 2026.
 
Previously, we had been required to make quarterly payments of $
5
 
million from September 2023
through June 2024.
 
As of March 29, 2025, the borrowings outstanding under this
 
term loan were $
702
 
million.
 
At
March 29, 2025, the interest rate under the Term Credit Agreement was
4.20
% plus
1.60
% for a combined rate of
5.80
%.
 
As of December 28, 2024, the borrowings outstanding under
 
this term loan were $
712
 
million.
 
At
December 28, 2024, the interest rate under the Term Credit Agreement was
4.45
% plus
1.60
% for a combined rate
of
6.05
%.
 
However, we have a hedge in place that ultimately creates an effective fixed rate of
5.91
% and
6.04
% at
March 29, 2025 and December 28, 2024, respectively.
 
The Term Credit Agreement requires, among other things,
that we maintain certain maximum leverage ratios.
 
Additionally, the Term
 
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.
U.S. Trade Accounts Receivable Securitization
We have a facility agreement based on our U.S. trade accounts receivable that is structured as an asset-backed
securitization program with pricing committed for up to
three years
.
 
On December 6, 2024, we extended the
expiration date of this facility agreement to
December 6, 2027
 
(the previous maturity date was
December 15, 2025
).
 
This facility agreement has a purchase limit of $
450
 
million with
two
 
banks as agents.
As of March 29, 2025 and December 28, 2024, the borrowings outstanding
 
under this securitization facility were
$
300
 
million and $
150
 
million, respectively.
 
At March 29, 2025, the interest rate on borrowings under
 
this facility
was based on the
asset-backed commercial paper rate
 
of
4.49
% plus
0.75
%, for a combined rate of
5.24
%.
 
At
December 28, 2024, the interest rate on borrowings under this facility was
 
based on the asset-backed commercial
paper rate of
4.73
% plus
0.75
%, for a combined rate of
5.48
%.
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.