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LONG-TERM DEBT AND FINANCE LEASE OBLIGATIONS | 3 Months Ended
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Mar. 28, 2020
Debt Disclosure [Abstract] |
LONG-TERM DEBT AND FINANCE LEASE OBLIGATIONS | LONG-TERM DEBT AND FINANCE LEASE OBLIGATIONS Long-term debt, net and finance leases consists of the following:
| March 28, 2020 |  | December 28, 2019
| (in thousands) |  |
Term loans | $ | 184,375 |  |  | $ | 193,750 |
Revolving facility | 1,168,096 |  |  | 676,134 |
2026 Senior Notes | 500,000 |  |  | 500,000 |
2028 Senior Notes | 500,000 |  |  | 500,000 |
Other debt | 10,227 |  |  | 5,781 |
Finance leases (Note 16) | 28,808 |  |  | 30,527 |
Total debt and finance leases | 2,391,506 |  |  | 1,906,192 |
Less: |  |  |
Current portion of long-term debt | 44,738 |  |  | 35,548 |
Current portion of finance leases (Note 16) | 2,929 |  |  | 2,997 |
Current portion of long-term debt and finance leases | 47,667 |  |  | 38,545 |
Long-term debt and finance leases | 2,343,839 |  |  | 1,867,647 |
Debt discount and debt issuance costs | (17,069) |  |  | (17,981) |
Long-term debt, net and finance leases | $ | 2,326,770 |  |  | $ | 1,849,666 |
As of March 28, 2020 and December 28, 2019, the weighted average interest rate on the Company’s debt was 3.03% and 3.46%, respectively. Term Loans and Revolving Facility The Company has a $2.8 billion credit facility (Credit Facility), consisting of a $750 million term loan and a $2.05 billion multi-currency revolving facility. The term loan facility matures in 19 quarterly installments with the last installment due March 26, 2023. On October 23, 2019, the Company prepaid $500.0 million of the term loan with proceeds from a $500.0 million unregistered private offering (see 2028 Senior Notes Offering below). The revolving facility matures on March 26, 2023, and requires no scheduled payment before that date. Under specified circumstances, the Company has the ability to increase the term loan and/or revolving facility by up to $1.0 billion in the aggregate. The interest rates applicable to the term loan and revolving facility under the Credit Facility are, at the Company’s option, equal to either the base rate (which is the higher of (1) the prime rate, (2) the federal funds rate plus 0.50%, or (3) the one-month adjusted LIBOR rate plus 1.0%) or the adjusted LIBOR rate, plus an interest rate margin based upon the Company’s leverage ratio. The Credit Facility includes certain customary representations and warranties, events of default, notices of material adverse changes to the Company’s business and negative and affirmative covenants. These covenants include (1) maintenance of a ratio of consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) less capital expenditures to consolidated cash interest expense, for any period of four consecutive fiscal quarters, of no less than 3.50 to 1.0 as well as (2) maintenance of a ratio of consolidated indebtedness to consolidated EBITDA for any period of four consecutive fiscal quarters, of no more than 4.00 to 1.0. As of March 28, 2020, the Company was compliant with all covenants. The obligations of the Company under the Credit Facility are collateralized by substantially all of the assets of the Company. During the three months ended March 28, 2020 and March 30, 2019, the Company had multiple U.S. dollar denominated loans borrowed by a non-U.S. Euro functional currency entity under the Company’s Credit Facility, which ranged from $300 million to $400 million. This resulted in foreign currency losses recognized in Other income, net of $4.2 million and $6.4 million during the three months ended March 28, 2020 and March 30, 2019, respectively, related to the remeasurement of the underlying debt. The Company entered into foreign exchange forward contracts to limit its foreign currency exposures related to these borrowings and recognized gains of $6.1 million and $8.9 million during the three months ended March 28, 2020 and March 30, 2019, respectively, within Interest expense. As of March 28, 2020, the Company did not have any outstanding borrowings in a currency different than its respective functional currency. See Note 14, “Foreign Currency Contracts”, for further discussion. Base Indenture for Senior Notes The Company has an indenture (Base Indenture) with MUFG Union Bank, N.A., (Trustee). The purpose of the Indenture was to allow the Company the ability to issue senior notes. The Company has entered into two supplemental indentures in connection with the senior notes described below. 2026 Senior Notes In fiscal year 2018, the Company entered into the first supplemental indenture (First Supplemental Indenture) with the Trustee in connection with an offering of $500 million in aggregate principal amount of the Company’s 5.5% Senior Notes (2026 Senior Notes), due in 2026, in an unregistered offering. Under the terms of the First Supplemental Indenture, interest on the Senior Notes is payable semi-annually on April 1 and October 1, beginning on October 1, 2018. 2028 Senior Notes In fiscal year 2019, the Company entered into a second supplemental indenture (Second Supplemental Indenture) with the Trustee in connection with the offering of $500 million in aggregate principal amount of the Company’s 4.25% Senior Notes (2028 Senior Notes), due in 2028, in an unregistered offering. Under the terms of the Second Supplemental Indenture, interest on the 2028 Senior Notes is payable semi-annually on May 1 and November 1, beginning on May 1, 2020. Letters of Credit As of March 28, 2020 and December 28, 2019, the Company had $8.3 million and $7.5 million, respectively, in outstanding letters of credit.

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- Definition The entire disclosure for debt and capital lease obligations can be reported. 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. Also includes descriptions and amounts of capital leasing arrangements that consist of direct financing, sales type and leveraged leases. Disclosure may include the effect on the balance sheet and the income statement resulting from a change in lease classification for leases that at inception would have been classified differently had guidance been in effect at the inception of the original lease. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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