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Borrowings | 9 Months Ended
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Sep. 29, 2013
Borrowings | Note 8 — Borrowings The components of long-term debt at September 29, 2013 and December 31, 2012 are as follows:
|  | September 29, 2013 |  |  | December 31, 2012 |
|  | (Dollars in thousands) |
Senior Credit Facility: |  |  |  |  |  |  |  |
Revolving credit facility, at a rate of 1.93% at September 29, 2013, due 7/16/2018 |  | $ | 382,000 |  |  | $ | — |
Term loan facility, at a rate of 2.75% at December 31, 2012, due 10/1/2014 |  |  | — |  |  |  | 375,000 |
3.875% Convertible Senior Subordinated Notes due 2017 |  |  | 400,000 |  |  |  | 400,000 |
6.875% Senior Subordinated Notes due 2019 |  |  | 250,000 |  |  |  | 250,000 |
|  |  | 1,032,000 |  |  |  | 1,025,000 |
Less: Unamortized debt discount on 3.875% Convertible Senior Subordinated Notes due 2017 |  |  | (51,312 | ) |  |  | (59,720 | )
|  | $ | 980,688 |  |  | $ | 965,280 |
Senior Credit Facility On July 16, 2013, the Company replaced its $775 million senior credit facility comprised of a $375 million term loan and a $400 million revolving credit facility with a new $850 million senior credit facility consisting solely of a revolving credit facility. In connection with this transaction, the Company incurred transaction fees of $6.4 million, which were recorded as a deferred asset and will be amortized over the term of the facility. Additionally, during the third quarter of 2013, in connection with the early repayment of its $375 million term loan, the Company recognized expense of approximately $1.3 million resulting from the write-off of unamortized debt issuance costs. The new $850 million senior credit facility bears interest at an applicable rate elected by the Company generally equal to either the “base rate” (the greater of either the federal funds effective rate plus 0.5%, the prime rate or one month LIBOR plus 1.0%) plus an applicable margin of 0.25% to 1.00%, or a “LIBOR rate” for the period corresponding to the applicable interest period of the borrowings plus an applicable margin of 1.25% to 2.00%. As of September 29, 2013, the interest rate on the $850 million senior credit facility was 1.93% (comprised of a LIBOR rate of 0.18% plus a margin of 1.75%). Convertible Notes The Company’s 3.875% Convertible Notes are convertible under certain circumstances, including upon the attainment of a closing price per share of its common stock that is at least 130% of the conversion price (approximately $79.72) for at least 20 trading days during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding fiscal quarter. The Company’s closing stock price has recently approached the 130% threshold, which increases the possibility that the Convertible Notes could become convertible in the near future, at which point the Convertible Notes would be classified as a current liability. The Company has elected a net settlement method to satisfy its conversion obligation, under which the Company may settle the principal amount of the Convertible Notes in cash and settle the excess conversion value in shares, plus cash in lieu of fractional shares. Fair Value of Long-Term Debt The carrying amount of long-term debt reported in the consolidated balance sheet as of September 29, 2013 is $980.7 million. The Company uses a discounted cash flow technique that incorporates a market interest yield curve with adjustments for duration, optionality, and risk profile to determine the fair value of its debt. The Company’s implied credit rating is a factor in determining the market interest yield curve. The following table provides the fair value of the Company’s debt as of September 29, 2013, categorized by fair value hierarchy level (see Note 12, “Fair value measurement,” in the Company’s annual report on Form 10-K for the year ended December 31, 2012 for further information) :
|  | Fair value of debt |
|  | (Dollars in thousands) |
Level 1 |  | $ | 824,748 |
Level 2 |  |  | 367,918 |
Total |  | $ | 1,192,666 |
Debt Maturities As of September 29, 2013, the aggregate amounts of long-term debt, demand loans and debt under the Company’s securitization program that will mature during the remainder of 2013, during each of the next three fiscal years and thereafter were as follows:
|  | (Dollars in thousands) |
2013 |  | $ | 4,700 |
2014 |  |  | — |
2015 |  |  | — |
2016 |  |  | — |
2017 and thereafter |  |  | 1,032,000 |

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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 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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