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Debt | 6 Months Ended
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Feb. 27, 2021
Debt [Abstract] |
Debt | Note 6. Debt Debt at February 27, 2021 and August 29, 2020 consisted of the following:
|  | February 27, |  | August 29, |
|  | 2021 |  | 2020 |
Revolving Credit Facility |  | $ | 115,000 |  | $ | 250,000 |
Uncommitted Credit Facilities |  |  | 201,200 |  |  | 1,200 |
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 |  |  | 50,000 |
3.04% Senior Notes, due January 12, 2023(1) |  |  | 50,000 |  |  | 50,000 |
3.42% Series 2018B Notes, due June 11, 2021(1) |  |  | 20,000 |  |  | 20,000 |
2.40% Series 2019A Notes, due March 5, 2024(1) |  |  | 50,000 |  |  | 50,000 |
Financing arrangements |  |  | 713 |  |  | 194 |
Less: unamortized debt issuance costs |  |  | (621) |  |  | (843) |
Total debt, excluding obligations under finance leases |  | $ | 681,292 |  | $ | 615,551 |
Less: current portion |  |  | (221,400) | (2) |  | (120,986) | (3)
Total long-term debt, excluding obligations under finance leases |  | $ | 459,892 |  | $ | 494,565 |
(1) Represents private placement debt issued under Shelf Facility Agreements (as defined below). (2) February 27, 2021 balance consists of $201,200 from the Uncommitted Credit Facilities, $20,000 from the 3.42% Series 2018B Notes, due June 11, 2021, $608 from financing arrangements, and net of $408 unamortized debt issuance costs expected to be amortized in the next 12 months. (3) August 29, 2020 balance consists of $100,000 from the Revolving Credit Facility, $1,200 from the Uncommitted Credit Facilities, $20,000 from the 3.42% Series 2018B Notes, due June 11, 2021, $194 from financing arrangements, and net of $408 unamortized debt issuance costs expected to be amortized in the next 12 months. Revolving Credit Facility The Company has a $600,000 committed credit facility (the “Revolving Credit Facility”). The Revolving Credit Facility, which matures on April 14, 2022, provides for a five year unsecured revolving loan facility. The interest rate for borrowings under the Revolving Credit Facility is based on either LIBOR or a base rate, plus a spread based on the Company’s leverage ratio at the end of each fiscal reporting quarter. Depending 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 Revolving Credit Facility bear interest based on LIBOR with one-month interest periods. The Revolving Credit Facility permits up to $50,000 to be used to fund letters of credit. Outstanding letters of credit under the Revolving Credit Facility were $4,235 and $16,742 at February 27, 2021 and August 29, 2020, respectively. Uncommitted Credit Facilities During fiscal year 2021, the Company entered into two uncommitted credit facilities which, together with the existing, uncommitted credit facility entered into during fiscal year 2020 (the “Uncommitted Credit Facilities”), total $205,000 in aggregate maximum uncommitted availability, under which $201,200 was outstanding at February 27, 2021. Borrowings under the Uncommitted Credit Facilities are due at the end of the applicable interest period, which is typically one month but may be up to six months, and may be rolled over to a new interest period at the option of the applicable lender. The Company’s lenders have, in the past, been willing to roll over the principal amount outstanding under the Uncommitted Credit Facilities at the end of each interest period but may not do so in the future. Each Uncommitted Credit Facility matures within one year of entering into such Uncommitted Credit Facility and contains certain limited covenants which are substantially the same as the limited covenants contained in the Revolving Credit Facility. All of the Uncommitted Credit Facilities are unsecured and rank equally in right of payment with the Company’s other unsecured indebtedness. Because the interest rates on the Uncommitted Credit Facilities are often lower than the interest rates which are available on the Company’s other sources of financing, the Company has used, and intends to use in the future, the Uncommitted Credit Facilities for opportunistic refinancing of the Company’s existing indebtedness. The Company does not presently view the Uncommitted Credit Facilities as sources of incremental debt financing of the Company due to the uncommitted nature of the Uncommitted Credit Facilities but reserves the right to use the Uncommitted Credit Facilities to incur additional debt where appropriate under the then existing credit market conditions. An event of default under the Revolving Credit Facility would constitute an event of default under each of the Uncommitted Credit Facilities. The interest rate on the Uncommitted Credit Facilities is based on LIBOR or the bank’s cost of funds or as otherwise agreed upon by the applicable bank and the Company. The $201,200 outstanding balance at February 27, 2021 and the $1,200 outstanding balance at August 29, 2020 under the Uncommitted Credit Facilities and $100,000 of the Revolving Credit Facility at August 29, 2020 are included in the Current portion of debt including obligations under finance leases on the Company’s unaudited Condensed Consolidated Balance Sheets. During the twenty-six-week period ended February 27, 2021, the Company borrowed an aggregate $415,000 and repaid an aggregate $350,000 under the Credit Facilities. As of February 27, 2021, and August 29, 2020, the weighted-average interest rates on borrowings under all of its credit facilities were 1.03% and 1.42%, respectively. Private Placement Debt In July 2016, the Company completed the issuance and sale of $75,000 aggregate principal amount of 2.65% Senior Notes, Series A, due July 28, 2023 and $100,000 aggregate principal amount of 2.90% Senior Notes, Series B, due July 28, 2026; in June 2018, the Company completed the issuance and sale of $20,000 aggregate principal amount of 3.79% Senior Notes, due June 11, 2025; and in March 2020, the Company completed the issuance and sale of an additional $50,000 aggregate principal amount of 2.60% Senior Notes, due March 5, 2027 (collectively, the “Private Placement Debt”). Interest is payable semiannually at the fixed stated interest rates. All of the Private Placement Debt is unsecured. Shelf Facility Agreements In January 2018, the Company entered into Note Purchase and Private Shelf Agreements with Metropolitan Life Insurance Company (the “Met Life Note Purchase Agreement”) and PGIM, Inc. (the “Prudential Note Purchase Agreement” and, together with the Met Life Note Purchase Agreement, 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 unsecured senior notes, at a fixed rate. 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 unsecured senior notes, at a fixed rate. As of February 27, 2021, the uncommitted availability under each of the Met Life Note Purchase Agreement and the Prudential Note Purchase Agreement was $180,000 and $200,000, respectively. Each of the Credit Facilities, the Private Placement Debt and the Shelf Facility Agreements imposes 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, the Private Placement Debt, and the Shelf Facility Agreements. At February 27, 2021, the Company was in compliance with the operating and financial covenants of the Credit Facilities, the Private Placement Debt and the 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 with the applicable vendor. During the twenty-six-week period ended February 27, 2021, the Company entered into financing arrangements related to certain information technology equipment and software totaling $1,286. The gross amount of property and equipment acquired under the financing arrangements and related accumulated amortization at February 27, 2021 were $1,286 and $518, respectively.

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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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