XML 27 R14.htm IDEA: XBRL DOCUMENT
v3.20.2

Debt | 9 Months Ended
--- | ---
May 30, 2020
Debt [Abstract] |
Debt | Note 6. Debt Debt at May 30, 2020 and August 31, 2019 consisted of the following:
|  | May 30, |  | August 31,
|  | 2020 |  | 2019
|  | (Dollars in thousands)
Revolving credit facility |  | $ | 588,000 |  | $ | -
Uncommitted credit facilities |  |  | 1,200 |  |  | 155,000
Private Placement Debt: |  |  |  |  |  |
2.65% Senior notes, series A, due July 28, 2023 |  |  | 75,000 |  |  | 75,000
2.90% Senior notes, series B, due July 28, 2026 |  |  | 100,000 |  |  | 100,000
3.79% Senior notes, due June 11, 2025 |  |  | 20,000 |  |  | 20,000
2.60% Senior notes, due March 5, 2027 |  |  | 50,000 |  |  | -
3.04% Senior notes due January 12, 2023(2) |  |  | 50,000 |  |  | 50,000
3.22% Series 2018A notes, due June 11, 2020(2) |  |  | 20,000 |  |  | 20,000
3.42% Series 2018B notes, due June 11, 2021(2) |  |  | 20,000 |  |  | 20,000
2.40% Series 2019A notes, due March 5, 2024(2) |  |  | 50,000 |  |  | -
Financing arrangements |  |  | 437 |  |  | 82
Less: unamortized debt issuance costs |  |  | (954) |  |  | (1,169)
Total debt, excluding obligations under finance leases |  | $ | 973,683 |  | $ | 438,913
Less: current portion(1) |  |  | (309,229) |  |  | (174,688)
Total long-term debt, excluding obligations under finance leases |  | $ | 664,454 |  | $ | 264,225
__________________________ (1)Net of unamortized debt issuance costs expected to be amortized in the next twelve months. (2)Represents private placement debt issued under Shelf Facility Agreements, discussed in further detail below. Revolving Credit Facility and Uncommitted Credit Facilities The Company has a $600,000 committed credit facility (the “Committed Facility”). The Committed Facility, which matures on April 14, 2022, provides for a five year unsecured revolving loan facility. The interest rate is based on either the London Interbank Offered Rate (“LIBOR”) or a base rate, plus in either case a spread based on the Company’s leverage ratio at the end of each fiscal reporting quarter. Based on the interest period the Company selects, interest may be payable every one, two, or three months. Interest is reset at the end of each interest period. The Company currently elects to have loans under the Committed Facility bear interest based on LIBOR with one-month interest periods. In March 2020, the Company borrowed an additional $300,000 on the Committed Facility to increase its cash position as a precautionary measure and to preserve financial flexibility in consideration of the disruption and uncertainty surrounding the ongoing COVID-19 pandemic. This amount is reported as Long-term debt including obligations under financing leases and the remaining outstanding balance of $288,000 is reported as Current portion of debt including obligations under financing leases within the condensed consolidated balance sheets at May 30, 2020. During the first quarter of fiscal 2019, the Company entered into six unsecured credit facilities that are uncommitted (the “Uncommitted Facilities”), totaling $440,000 of maximum uncommitted availability. During the first quarter of fiscal 2020, the Company extended, and in some cases amended, five of the Uncommitted Facilities (the “Amended Uncommitted Facilities”), totaling $410,000 of maximum uncommitted availability. Borrowings under the Amended Uncommitted Facilities are generally due at the end of the applicable agreed interest period, but, in any event, no later than the one-year anniversary of the entrance into the applicable Amended Uncommitted Facility. The Amended Uncommitted Facilities contain limited covenants. As of May 30, 2020, the Company did no t have an outstanding balance on the Amended Uncommitted Facilities. During the second quarter of fiscal 2020, the Company entered into an additional uncommitted credit facility (“New Uncommitted Credit Facility”), totaling $5,000 of maximum uncommitted availability. As of May 30, 2020, the Company had an outstanding balance of $1,200 on the New Uncommitted Credit Facility. An event of default under the Company’s Committed Facility is an event of default under the Amended Uncommitted Facilities and the New Uncommitted Credit Facility. The interest rate on the Amended Uncommitted Facilities and the New Uncommitted Credit Facility is based on LIBOR or the bank’s cost of funds or as otherwise agreed upon by the applicable bank and the Company. The $1,200 outstanding balance at the end of the fiscal third quarter of 2020 under the Amended Uncommitted Facilities and the New Uncommitted Credit Facility is classified as short-term in the Company’s Condensed Consolidated Balance Sheet. During the thirty-nine-week period ended May 30, 2020, the Company borrowed $1,012,200 and repaid $578,000 under all of its credit facilities. As of May 30, 2020 and August 31, 2019, the weighted average interest rates on borrowings under all of its credit facilities were 1.36% and 3.01%, respectively. Shelf Facility Agreements In January 2018, the Company entered into Note Purchase and Private Shelf Agreements with Metropolitan Life Insurance Company (“Met Life Note Purchase Agreement”) and PGIM, Inc. (“Prudential Note Purchase Agreement”), and together referred to as the “Shelf Facility Agreements”. The Met Life Note Purchase Agreement provides for an uncommitted facility for the issuance and sale of up to an aggregate total of $250,000 of senior notes, at either fixed or floating rates. The Prudential Note Purchase Agreement provides for an uncommitted facility for the issuance and sale of up to an aggregate total of $250,000 of senior notes, at a fixed rate. As of May 30, 2020, the uncommitted availability under the Met Life Note Purchase Agreement and the Prudential Note Purchase Agreement is $160,000 and $200,000, respectively. Each of the credit facilities, Private Placement Debt, and Shelf Facility Agreements impose several restrictive covenants including the requirement that the Company maintain a maximum consolidated leverage ratio of total indebtedness to EBITDA (earnings before interest expense, taxes, depreciation, amortization and stock-based compensation) of no more than 3.00 to 1.00 (or, at the election of the Company after it consummates a material acquisition, a four-quarter temporary increase to 3.50 to 1.00), and a minimum consolidated interest coverage ratio of EBITDA to total interest expense of at least 3.00 to 1.00, during the terms of the credit facilities, Private Placement Debt, and Shelf Facility Agreements. At May 30, 2020, the Company was in compliance with the operating and financial covenants of the credit facilities, Private Placement Debt, and Shelf Facility Agreements. Financing Arrangements From time to time, the Company enters into financing arrangements with vendors to purchase certain information technology equipment or software. The equipment or software acquired from these vendors is paid for over a specified period of time based on the terms agreed upon. During the thirty-nine-week period ended May 30, 2020, the Company entered into financing arrangements related to certain IT equipment and software totaling $1,164. The gross amount of property and equipment acquired under the financing arrangements and its accumulated amortization at May 30, 2020 was $1,328 and $809, respectively.

X
- References No definition available. + Details
Name: | us-gaap_DebtAndCapitalLeaseObligationsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_DebtAndCapitalLeasesDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration