XML 26 R15.htm IDEA: XBRL DOCUMENT
v3.21.2

Long-term Debt and Letters of Credit | 9 Months Ended
--- | ---
Sep. 27, 2021
Debt Disclosure [Abstract] |
Long-term Debt and Letters of Credit | (8) Long-term Debt and Letters of Credit The following table summarizes the long-term debt of the Company as of September 27, 2021 and December 28, 2020:
|  | Interest Rate as of September 27, 2021 |  |  | Principal Outstanding as of September 27, 2021 |  |  | Interest Rate as of December 28, 2020 |  |  | Principal Outstanding as of December 28, 2020 |
|  | (In thousands) |
Senior Notes due March 2029 |  |  | 4.00 |  | % | $ | 500,000 |  |  |  | — |  | % | $ | — |
Term Loan due September 2024 |  |  | 2.59 |  |  |  | 405,879 |  |  |  | 2.65 |  |  |  | 405,879 |
Senior Notes due October 2025 |  |  | — |  |  |  | — |  |  |  | 5.63 |  |  |  | 375,000 |
U.S. ABL Revolving Loan due June 2024 |  |  | — |  |  |  | — |  |  |  | 1.40 |  |  |  | 40,000 |
Asia ABL Revolving Loan due June 2024 |  |  | 1.49 |  |  |  | 30,000 |  |  |  | 1.55 |  |  |  | 30,000 |
|  |  |  |  |  |  | 935,879 |  |  |  |  |  |  |  | 850,879 |
Less: Long-term debt unamortized discount |  |  |  |  |  |  | (660 | ) |  |  |  |  |  |  | (814 | )
Long-term debt unamortized debt issuance costs |  |  |  |  |  |  | (8,297 | ) |  |  |  |  |  |  | (7,212 | )
|  |  |  |  |  |  | 926,922 |  |  |  |  |  |  |  | 842,853 |
Less: current maturities |  |  |  |  |  |  | — |  |  |  |  |  |  |  | — |
Long-term debt, less current maturities |  |  |  |  |  | $ | 926,922 |  |  |  |  |  |  | $ | 842,853 |
Pursuant to the Term Loan Credit Agreement, the Company may reinvest the cash proceeds received from the sale of the Mobility business unit for a period of twelve months commencing September 3, 2020. If the proceeds are not reinvested during that time, the Company is required to use the proceeds to prepay the Term Loan. The Company used a portion of the cash proceeds to repay $400,000 of the Term Loan during the year ended December 28, 2020 and used the remaining cash proceeds for reinvestment pursuant to the Term Loan Credit Agreement. Permitted investments, as defined in the Term Loan Credit Agreement, include extensions of trade credit in the ordinary course of business, investments in cash and cash equivalents, permitted acquisitions, investments in assets useful in the business of the Company and its restricted subsidiaries, investments in joint ventures and unrestricted subsidiaries among others. Senior Notes due 2029 On March 10, 2021, the Company issued $500,000 of Senior Notes due 2029, which are included in long-term debt and bear interest at a rate of 4.0% per annum. Interest is payable semiannually in arrears on March 1 and September 1 of each year beginning September 1, 2021. The Senior Notes due 2029 will mature on March 1, 2029. The Company used a portion of the net proceeds from the issuance of the Senior Notes due 2029 during the quarter ended March 29, 2021 to: (i) fund the early retirement of $375,000 Senior Notes due 2025, (ii) fund the repayment of $40,000 outstanding under the U.S. Asset-Based Lending Credit Agreement (U.S. ABL) Revolving credit facility (but not terminate the commitments thereunder), and (iii) pay related premiums, fees and expenses. The Company has and intends to use the remaining net proceeds for general corporate purposes. Asset-Based Lending Agreements As of September 27, 2021, letters of credit in the amount of $12,346 were outstanding under the U.S. ABL and $2,606 were outstanding under the Asia Asset-Based Lending Credit Agreement (Asia ABL) with various expiration dates through September 2021. Available borrowing capacity under the U.S. ABL and the Asia ABL was $137,654 and $117,394, respectively, which considers letters of credit outstanding as of September 27, 2021. Debt Covenants Borrowings under the Term Loan and Senior Notes due 2029 are subject to certain affirmative and negative covenants, including limitations on indebtedness, corporate transactions, investments, dispositions, and share payments. Under the occurrence of certain events, the U.S. ABL and Asia ABL (collectively, the ABL Revolving Loans), are subject to various financial covenants, including leverage and fixed charge coverage ratios. Debt Issuance and Debt Discount As of September 27, 2021 and December 28, 2020, remaining unamortized debt discount and debt issuance costs for the Senior Notes due 2029, Term Loan Facility and Senior Notes due 2025 are as follows:
|  | As of September 27, 2021 |  |  | As of December 28, 2020
|  | Debt Issuance Costs |  |  | Debt Discount |  |  | Effective Interest Rate |  |  | Debt Issuance Costs |  |  | Debt Discount |  |  | Effective Interest Rate |  |
|  | (In thousands, except interest rates)
Senior Notes due March 2029 |  | $ | 6,114 |  |  | $ | — |  |  |  | 4.19 |  | % | $ | — |  |  | $ | — |  |  |  | — |  | %
Term Loan due September 2024 |  |  | 2,183 |  |  |  | 660 |  |  |  | 4.66 |  |  |  | 2,695 |  |  |  | 814 |  |  |  | 4.66 |  |
Senior Notes due October 2025 |  | — |  |  | — |  |  |  | — |  |  |  | 4,517 |  |  | — |  |  |  | 5.92 |  |
|  | $ | 8,297 |  |  | $ | 660 |  |  |  |  |  |  | $ | 7,212 |  |  | $ | 814 |  |  |  |  |  |
The above debt discount and debt issuance costs are recorded as a reduction of the debt and are amortized into interest expense using an effective interest rate over the duration of the debt. Remaining unamortized debt issuance costs for the ABL Revolving Loans of $1,496 and $1,919 as of September 27, 2021 and December 28, 2020, respectively, are included in other non-current assets and are amortized to interest expense over the duration of the ABL Revolving Loans using the straight-line method of amortization. As of September 27, 2021, the remaining weighted average amortization period for all unamortized debt discount and debt issuance costs was 5.5 years. Loss on Extinguishment of Debt During the three quarters ended September 27, 2021, the Company recognized losses of $15,217 associated with the premium paid on extinguishment of debt and the write-off of the remaining unamortized debt issuance costs as a result of the repayment of the remaining outstanding balance of the Senior Notes due 2025.

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

X
- Definition The entire disclosure for long-term debt. + References Reference 1: 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_LongTermDebtTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration