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External Debt and Financing Arrangements
 3 Months Ended
Mar. 30, 2024
Debt Disclosure [Abstract]  
External Debt and Financing Arrangements

6. External Debt and Financing Arrangements

Senior Notes

At March 30, 2024, the Company had aggregate outstanding senior notes in the principal amount of $2.7 billion, with varying maturities (the “Notes”). The Notes are unsecured senior obligations of the Company. The following table provides a summary of the Company’s outstanding Notes, including the net carrying value of the Notes, net of underwriting commissions, price discounts, and debt issuance costs as of March 30, 2024 and December 30, 2023:

 

 

 

 

 

 

 

 

Net Carrying Value

 

 (in millions)

Principal Amount

 

 

Issuance Date

 

Maturity Date

 

March 30, 2024

 

 

December 30, 2023

 

4.000% Senior Notes

$

500.0

 

 

June 2015

 

June 2025

 

$

499.1

 

 

$

498.9

 

3.250% Senior Notes

$

700.0

 

 

September 2019

 

September 2029

 

 

695.9

 

 

 

695.7

 

4.000% Senior Notes

$

450.0

 

 

March 2022

 

March 2032

 

 

446.4

 

 

 

446.2

 

4.500% Senior Notes

$

450.0

 

 

March 2022

 

March 2052

 

 

436.0

 

 

 

435.9

 

5.875% Senior Notes

$

600.0

 

 

June 2023

 

June 2033

 

 

593.6

 

 

 

593.4

 

Total Senior Notes

 

 

 

 

 

 

 

$

2,671.0

 

 

$

2,670.1

 

 

Credit Facilities

 

In August 2022, the Company entered into a third amended and restated $1.25 billion revolving credit facility (the “Revolving Credit Agreement”), and borrowings thereunder will be used for general corporate purposes. The maturity date of the facility is August 2027. Interest rates under the Revolving Credit Agreement are variable based on the Secured Overnight Financing Rate (“SOFR”) at the time of the borrowing and the Company’s long-term credit rating and can range from SOFR + 1.02% to SOFR + 1.525%. Under the Revolving Credit Agreement, the Company is required to maintain a minimum ratio of consolidated EBITDA to consolidated interest expense of 3.0 to 1.0. Consolidated EBITDA is defined as consolidated net income before interest expense, income taxes, depreciation, amortization of intangible assets, losses from asset impairments, and certain other one-time adjustments. In addition, the Company's ratio of consolidated debt minus certain cash and cash equivalents to consolidated EBITDA generally may not exceed 3.5 to 1.0. There were no outstanding borrowings under this facility as of March 30, 2024 and December 30, 2023. As of March 30, 2024, we were in compliance with all covenants under this facility.

We currently have uncommitted bank lines of credit in China, which provide for unsecured borrowings for working capital of up to $30.5 million in aggregate as of March 30, 2024 and December 30, 2023. There were no outstanding balances as of March 30, 2024 and December 30, 2023.

 

Commercial Paper

The Company operates a commercial paper program (the “Commercial Paper Program”) pursuant to which the Company may issue unsecured commercial paper notes. The Company’s Revolving Credit Agreement is the liquidity backstop for the repayment of any notes issued under the Commercial Paper Program, and as such, borrowings under the Commercial Paper Program are included in Long-term debt in the condensed consolidated balance sheets. Amounts available under the Commercial Paper Program may be borrowed, repaid and re-borrowed, with the aggregate principal amount outstanding at any time, including borrowings under the Revolving Credit Agreement, not to exceed $1.25 billion. The Company will use any issuances under the Commercial Paper Program for general corporate purposes. Outstanding borrowings under the Commercial Paper Program as of March 30, 2024 and December 30, 2023 were $373.7 million and zero, respectively.