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Long-term Debt and Letters of Credit | 12 Months Ended
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Dec. 29, 2025
Debt Disclosure [Abstract] |
Long-term Debt and Letters of Credit | (7) Long-term Debt and Letters of Credit Long-term debt was as follows:
|  | As of December 29, 2025 |  |  | As of December 30, 2024 |
|  | Interest Rate |  | Principal Outstanding |  |  | Interest Rate |  | Principal Outstanding |
|  | (In thousands, except interest rates) |
Senior Notes due March 2029 |  |  | 4.00 |  | % |  | $ | 500,000 |  |  |  | 4.00 |  | % |  | $ | 500,000 |
Term Loan due May 2030 |  |  | 5.97 |  |  |  |  | 342,169 |  |  |  | 6.59 |  |  |  |  | 345,634 |
Asia ABL Revolving Loan due June 2028 |  |  | 5.02 |  |  |  |  | 80,000 |  |  |  | 5.64 |  |  |  |  | 80,000 |
Other |  |  | 5.99 |  |  |  |  | 1,981 |  |  |  | 5.99 |  |  |  |  | 2,311 |
Total debt |  |  |  |  |  |  | 924,150 |  |  |  |  |  |  |  | 927,945 |
Less: Unamortized debt issuance costs |  |  |  |  |  |  | (5,617 | ) |  |  |  |  |  |  | (6,951 | )
Less: Unamortized debt discount |  |  |  |  |  |  | (2,382 | ) |  |  |  |  |  |  | (2,840 | )
Subtotal |  |  |  |  |  |  | 916,151 |  |  |  |  |  |  |  | 918,154 |
Less: Current maturities |  |  |  |  |  |  | (3,815 | ) |  |  |  |  |  |  | (3,795 | )
Long-term debt, less current maturities |  |  |  |  |  | $ | 912,336 |  |  |  |  |  |  | $ | 914,359 |
The fiscal calendar maturities of debt for the next five years are as follows:
|  | (In thousands) |
2026 |  | $ | 3,815 |
2027 |  |  | 4,735 |
2028 |  |  | 83,828 |
2029 |  |  | 503,018 |
2030 |  |  | 328,754 |
Total |  | $ | 924,150 |
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 Senior Notes due 2029 are irrevocably and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by the Company’s existing and future domestic subsidiaries, subject to certain exceptions. The Senior Notes due 2029 and related guarantees are senior unsecured obligations of, respectively, the Company and applicable subsidiary guarantors. Term Loan Facility On August 1, 2024, the Company entered into the Term Loan Facility, by and among the Company, as Borrower, JPMorgan Chase Bank, N.A., as Administrative Agent, and the several lenders from time to time parties thereto, pursuant to which the Company closed its $346,500 senior secured term loan that bears interest at a floating rate of 1-month CME SOFR plus an applicable margin of 2.25%. The Term Loan Facility is issued at par and matures on May 30, 2030, and the majority is a cashless rollover from the previous term loan facility. This Term Loan Facility had an outstanding balance of $342,169 as of December 29, 2025, of which $3,465 is included in short-term debt and $338,704 is included in long-term debt. The Term Loan Facility was issued with a 1.0% original issue discount. There is no provision, other than an event of default, for the interest margin to increase. The Company is required to make quarterly principal repayments in an aggregate annual amount equal to 1% of the $346,500 aggregate principal amount of the Term Loan Facility. Such principal repayment is payable quarterly on January 1, April 1, July 1, and October 1 and ending with the last such day to occur prior to May 30, 2030. The remaining principal under the Term Loan Facility is scheduled to mature on May 30, 2030. In addition, the Term Loan Facility permits the Company to add one or more senior secured incremental term loan facilities to the Term Loan Facility subject to the satisfaction of certain conditions. The obligations under the Term Loan Facility are unconditionally guaranteed by the Guarantors. The Term Loan Facility is secured by (i) a perfected first priority security interest in substantially all of the assets of the Company and the Guarantors (other than the U.S. ABL Priority Collateral), including all of the total outstanding voting capital stock held by the Company and the Guarantors (subject to a limitation of 65% on pledges of such capital stock of certain foreign subsidiaries and domestic holding companies of foreign subsidiaries) and (ii) a perfected second priority interest in all of the U.S. ABL Priority Collateral. The Term Loan Facility is structurally senior to the Company’s Senior Notes due 2029. Based on certain parameters defined in the Term Loan Facility, including a Secured Leverage Ratio, the Company may be required to make an additional principal payment on an annual basis if its Secured Leverage Ratio is greater than 2.0. Borrowings under the Term Loan Facility are subject to certain affirmative and negative covenants, including limitations on indebtedness, corporate transactions, investments, dispositions, and share payments. Asset-Based Lending Agreements The U.S. ABL is comprised of a revolving credit facility for up to $150,000 and a sublimit for letter of credit for up to $50,000, provided that at no time may amounts outstanding under the agreement exceed in the aggregate $150,000 or the applicable borrowing base, which is the sum of (i) a percentage of the principal amount of “Eligible Accounts”, plus (ii) a percentage of the net orderly liquidation value of (x) “Eligible Inventory”, minus (y) “Inventory Reserves” applicable thereto, minus (iii) “Reserves”, each as defined in the U.S. ABL agreement. Borrowings under the U.S. ABL bear interest at a floating rate of Term SOFR plus a margin ranging from 1.25% to 1.50%. The applicable margin can vary based on the remaining availability of the facility, from 1.25% to 1.50% for Term SOFR-based loans and from 0.25% to 0.50% for JPMorgan Chase Bank’s prime rate-based loans. Other than availability and an event of default, there are no other provisions for the interest margin to increase. The U.S. ABL is scheduled to mature on May 30, 2028. The Guarantors have also fully guaranteed the full and timely payment of all obligations in respect of the U.S. ABL. Loans made under the U.S. ABL are secured by U.S. ABL Priority Collateral as well as by a perfected second priority interest in all of the collateral securing the Term Loan Facility. The Asia ABL is comprised of a revolving credit facility for up to $150,000 and a sublimit for letter of credit for up to $100,000, provided that at no time may amounts outstanding under the agreement exceed in aggregate $150,000 or the applicable borrowing base, which is a percentage of the principal amount of Eligible Accounts, as defined in the Asia ABL agreement. Borrowings under the Asia ABL bear interest at a floating rate of Term SOFR plus 1.30%. There is no provision, other than an event of default, for the interest margin to increase. As of December 29, 2025, the interest rate on the outstanding borrowings under the Asia ABL was 5.02%. As of December 29, 2025, $80,000 under the Asia ABL was outstanding and classified as long-term debt, which is consistent with its maturity date. The Asia ABL is scheduled to mature on June 13, 2028. Loans made under the Asia ABL are secured by a portion of the Company’s Asia Pacific cash and receivables and are structurally senior to the Company’s domestic obligations, including the Senior Notes due 2029. As of December 29, 2025, letters of credit in the amount of $6,628 were outstanding under the U.S. ABL and $17,540 were outstanding under the Asia ABL with various maturities through February 2027. Available borrowing capacity under the U.S. ABL and the Asia ABL was $143,372 and $52,460 respectively, which considers letters of credit outstanding as of December 29, 2025. The Company is required to pay a commitment fee of 0.25% per annum on any unused portion of the ABL Revolving Loans. The Company incurred total commitment fees related to unused borrowing availability of $504, $476, and $620 for the years ended December 29, 2025, December 30, 2024, and January 1, 2024, respectively. Under the occurrence of certain events, the ABL Revolving Loans are subject to various financial covenants, including leverage and fixed charge coverage ratios. Debt Issuance Costs and Debt Discount Remaining unamortized debt issuance costs and debt discount were as follows:
|  | As of December 29, 2025 |  | As of December 30, 2024
|  | 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 |  | $ | 2,608 |  |  | $ | — |  |  |  | 4.18 |  | % |  | $ | 3,362 |  |  | $ | — |  |  |  | 4.18 |  | %
Term Loan due May 2030 |  |  | 3,009 |  |  |  | 2,382 |  |  |  | 8.01 |  |  |  |  | 3,589 |  |  |  | 2,840 |  |  |  | 8.01 |  |
Total |  | $ | 5,617 |  |  | $ | 2,382 |  |  |  |  |  |  | $ | 6,951 |  |  | $ | 2,840 |  |  |  |  |
The above debt issuance costs and debt discount 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 $874 and $1,239 as of December 29, 2025 and December 30, 2024, respectively, are included in deposits and 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 December 29, 2025, the remaining weighted average amortization period for all unamortized debt issuance costs and debt discount was 3.9 years. Debt Covenants As of December 29, 2025, the Company was in compliance with the financial covenants under the Senior Notes due 2029, Term Loan Facility, and ABL Revolving Loans. Loss on Extinguishment of Debt During the year ended January 1, 2024, the Company recognized loss on extinguishment of debt of $1,154, primarily associated with the write-off of the remaining unamortized debt issuance costs and debt discount as a result of the repayment of the remaining outstanding balance of the previous Term Loan Facility that was due to mature September 2024.

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