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Note 6 - Debt | 12 Months Ended
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Dec. 30, 2017
Notes to Financial Statements |
Debt Disclosure [Text Block] | 6 . Debt The carrying amounts of debt at December 3 0, 2017 and December 31, 2016 are as follows:
(in thousands ) |  | 201 7 |  |  | 2016 |
Revolving Credit Facility |  | $ | — |  |  | $ | 112,500 |
Term Loan |  |  | 122,500 |  |  |  | 120,313 |
Entrusted loan |  |  | — |  |  |  | 3,522 |
Euro Senior Notes, Series A due 2023 |  |  | 139,623 |  |  |  | 122,313 |
Euro Senior Notes, Series B due 2028 |  |  | 113,369 |  |  |  | 99,314 |
U .S. Senior Notes, Series A due 2022 |  |  | 25,000 |  |  |  | — |
U .S. Senior Notes, Series B due 2027 |  |  | 100,000 |  |  |  | — |
Unamortized debt issuance costs |  |  | (4,881 | ) |  |  | (3,820 | )
Total debt |  |  | 495,611 |  |  |  | 454,142 |
Less: Current maturities |  |  | (6,250 | ) |  |  | (6,250 | )
Total long-term debt |  | $ | 489,361 |  |  | $ | 447,892 |
Revolving Credit Facility / Term Loan On March 4, 2016, the Company entered into a five -year credit agreement (“Credit Agreement”) with a group of lenders for up to $700.0 million. The Credit Agreement consisted of an unsecured revolving credit facility (“Revolving Credit Facility”) of $575.0 million and an unsecured term loan credit facility (“Term Loan”) of up to $125.0 million. In addition, the Company had the ability, from time to time, to increase the size of the Revolving Credit Facility and the Term Loan by up to an additional $150.0 million, in the aggregate, in each case in minimum increments of $25.0 million, subject to certain conditions and the agreement of participating lenders. For the Term Loan, the Company was required to make quarterly principal payments of $1.6 million through March 31, 2018 and $3.1 million from June 30, 2018 through December 31, 2020 with the remaining balance due on March 4, 2021. On October 13, 2017, the Company amended the Credit Agreement to increase the Revolving Credit Facility from $575.0 million to $700.0 million and increase the Term Loan from $125.0 million to $200.0 million and to extend the expiration date from March 4, 2021 to October 13, 2022. The Credit Agreement also includes the option for the Company to increase the size of the Revolving Credit Facility and the Term Loan by up to an additional $300.0 million, in the aggregate, subject to the satisfaction of certain conditions set forth in the Credit Agreement. Term Loans may be made in up to two advances. The first advance of $125.0 million occurred on October 13, 2017 and the second advance of $75.0 million occurred on January 16, 2018. For the Term Loan, the Company is required to make quarterly principal payments of 1.25% of the original term loan ( $1.6 million as of December 30, 2017 increasing to $2.5 million with the second advance on January 16, 2018) through maturity, with the remaining balance due on October 13, 2022. Outstanding borrowings under the Credit Agreement bear interest, at the Company’s option, at either LIBOR, fixed for interest periods of one, two, three or six -month periods, plus 1.00% to 2.00%, or at the bank’s Base Rate, as defined, plus 0.00% to 1.00%, based upon the Company’s Consolidated Leverage Ratio, as defined. The Company is also required to pay commitment fees on unused portions of the credit agreement ranging from 0.15% to 0.25%, based on the Consolidated Leverage Ratio, as defined. The credit agreement includes representations, covenants and events of default that are customary for financing transactions of this nature. The effective interest rate on outstanding borrowings under the credit facility was 3.07% at December 30, 2017. As of December 3 0, 2017, the Company had $0.1 million outstanding in letters of credit and had available $699.9 million of borrowing capacity under the Revolving Credit Facility. At December 30, 2017, the Company was in compliance with all covenants under the Credit Agreement. Senior Notes On December 8, 2016, the Company entered into a Note Purchase Agreement, pursuant to which the Company issued and sold €212 million aggregate principal amount of senior notes in two series. The funding date for the Euro denominated senior notes occurred on December 8, 2016 for €117 million in aggregate amount of 1.14% Senior Notes, Series A, due December 8, 2023 ( “Euro Senior Notes, Series A due 2023” ) , and €95 million in aggregate amount of 1.83% Senior Notes, Series B due December 8, 2028 ( “Euro Senior Notes, Series B due 2028” ) (together, the “Euro Senior Notes”). Interest on the Euro Senior Notes is payable semiannually on June 8 and December 8, commencing June 8, 2017. On December 8, 2016, the Company entered into a Note Purchase Agreement, pursuant to which the Company issued and sold $125 million aggregate principal amount of senior notes in two series. On February 15, 2017, $25 million in aggregate principal amount of 3.03% Senior Notes, Series A, due February 15, 2022 ( “U.S. Senior Notes, Series A due 2022” ) , and $100 million in aggregate principal amount of 3.74% Senior Notes, Series B, due February 15, 2027 ( “U.S. Senior Notes, Series B due 2027” ) (together, the “U.S. Senior Notes due 2022 and 2027” ) were funded. Interest on the U.S. Senior Notes due 2022 and 2027 is payable semiannually on February 15 and August 15, commencing August 15, 2017. On November 15, 2017, the Company entered into a Note Purchase Agreement pursuant to which the Company issued and sold $175 million in aggregate principal amount of senior notes in two series. On January 16, 2018, $50 million aggregate principal amount of 3.48% Senior Notes, Series A, due February 15, 2025 (“U.S. Senior Notes, Series A due 2025” ) and $125 million in aggregate principal amount of 3.78% Senior Notes, Series B, due February 15, 2030 ( “U.S. Senior Notes, Series A due 2030” ) (together the “U.S. Senior Notes due 2025 and 2030” and with the Euro Senior Notes and the U.S. Senior Notes 2022 and 2027, the “Senior Notes”) were funded. Interest on the U.S. Senior Notes due 2025 and 2030 will be payable on February 15 and August 15, commencing on August 15, 2018. The Senior Notes have not been registered under the Securities Act, or applicable state securities laws. The Senior Notes are general unsecured senior obligations and rank equal in right of payment with all existing and future unsecured unsubordinated indebtedness of the Company. The Senior Notes are subject to certain customary covenants, including limitations on the Company’s ability, with certain exceptions, to engage in mergers, consolidations, asset sales and transactions with affiliates, to engage in any business that would substantially change the general business of the Company, and to incur liens. In addition, the Company is required to satisfy certain financial covenants and tests relating to, among other matters, interest coverage and leverage. At December 30, 2017, the Company was in compliance with all covenants under the Senior Notes. The Company may redeem the Senior Notes upon the satisfaction of certain conditions and the payment of a make-whole amount to noteholders, and are required to offer to repurchase the Senior Notes at par following certain events, including a change of control. Debt Issuance Costs The Company incurred debt issuance costs of $1.6 million in relation to the Credit Agreement which, along with the remaining balance of debt issuance costs of the previous credit facility, are being amortized over the life of the Credit Agreement. The Company additionally incurred aggregate debt issuance costs of $2.6 million in relation to the Senior Notes which are being amortized over the respective lives of the Series A and B notes. Entrusted Loan During 2014, the Company entered into an entrusted loan arrangement (“Entrusted Loan”) of Chinese renminbi 110.0 million (approximately U.S. $17.9 million) between two of its China legal entities, Littelfuse Semiconductor (“Wuxi”) Company (the “lender”) and Suzhou Littelfuse OVS Ltd. (the “borrower”), utilizing Bank of America, N.A., Shanghai Branch as agent. Direct borrowing and lending between two commonly owned commercial entities was strictly forbidden at the time under China’s regulations requiring the use of a third -party agent to enable loans between Chinese legal entities. As a result, the Entrusted Loan is reflected as both a long-term asset and long-term debt on the Company’s Consolidated Balance Sheets and is reflected in the investing and financing activities in its Consolidated Statements of Cash Flows. Interest expense and interest income will be recorded between the lender and borrower with no net impact on the Company’s Consolidated Statements of Income since the amounts will be offsetting. The loan interest rate per annum is 5.25%. The Entrusted Loan is used to finance the operation and working capital needs of the borrower and matures in November 2019. The balance of the Entrusted Loan was paid off as of September 30, 2017. Interest paid on all Company debt was approximately $13.4 million, $8.6 million, and $4.1 million in 2017, 2016, and 2015, respectively. Debt Maturities Scheduled maturities of the Company’s long-term debt for each of the five years succeeding December 30, 2017 and thereafter are summarized as follows:
(in thousands ) |  | Scheduled Maturities |
201 8 |  | $ | 6,250 |
201 9 |  |  | 6,250 |
20 20 |  |  | 6,250 |
202 1 |  |  | 6,250 |
202 2 |  |  | 122,500 |
202 3 and thereafter |  |  | 352,992 |
|  | $ | 500,492 |

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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 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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