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Debt, Capital Lease Obligations and Other Financing | 12 Months Ended
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Sep. 30, 2017
Debt and Capital Lease Obligations [Abstract] |
Debt, Capital Lease Obligations and Other Financing | Debt, Capital Lease Obligations and Other Financing Debt and capital lease obligations as of September 30, 2017 and October 1, 2016, consisted of the following (in thousands):
|  | 2017 |  | 2016
Borrowings under the credit facility |  | $ | 108,000 |  |  | $ | 75,000 |
5.20% Senior notes, due June 15, 2018 |  | 175,000 |  |  | 175,000 |
Capital lease and other financing obligations |  | 30,901 |  |  | 13,614 |
Unamortized deferred financing fees |  | (794 | ) |  | (1,105 | )
Total obligations |  | 313,107 |  |  | 262,509 |
Less: current portion |  | (286,934 | ) |  | (78,507 | )
Long-term debt and capital lease obligations, net of current portion |  | $ | 26,173 |  |  | $ | 184,002 |
The Company has a senior unsecured revolving credit facility (the "Credit Facility"), with a $300.0 million maximum commitment that expires on July 5, 2021. The Credit Facility may be further increased to $500.0 million, generally by mutual agreement of the Company and the lenders, subject to certain customary conditions. During fiscal 2017, the highest daily borrowing was $151.0 million; the average daily borrowings were $106.7 million. The Company borrowed $331.0 million and repaid $298.0 million of revolving borrowings under the Credit Facility during fiscal 2017. The financial covenants (as defined under the related Credit Agreement) require that the Company maintain, as of each fiscal quarter end, a maximum total leverage ratio and a minimum interest coverage ratio. As of September 30, 2017, the Company was in compliance with all financial covenants of the Credit Agreement. Borrowings under the Credit Facility bear interest, at the Company’s option, at a eurocurrency or base rate plus, in each case, an applicable interest rate margin based on the Company’s then-current leverage ratio (as defined in the Credit Agreement). As of September 30, 2017, the borrowing rate under the Credit Agreement was LIBOR plus 1.125% (or 2.358%). The Company is required to pay an annual commitment fee on the unused revolver credit commitment based on the Company's leverage ratio; the fee was 0.175% as of September 30, 2017. The Company also has outstanding 5.20% Senior Notes, due on June 15, 2018 (the "Notes"). As of September 30, 2017 and October 1, 2016, $175.0 million was outstanding, and the Company was in compliance with all financial covenants relating to the Notes, which are generally consistent with those in the Credit Agreement discussed above. The aggregate scheduled maturities of the Company’s debt obligations as of September 30, 2017, are as follows (in thousands):
2018 | $ | 283,000 |
2019 | — |
2020 | — |
2021 | — |
2022 | — |
Thereafter | — |
Total | $ | 283,000 |
The aggregate scheduled maturities of the Company’s capital leases and other financing obligations as of September 30, 2017, are as follows (in thousands):
2018 | $ | 3,934 |
2019 | 2,705 |
2020 | 1,648 |
2021 | 820 |
2022 | 651 |
Thereafter | 21,143 |
Total | $ | 30,901 |
The Company's weighted average interest rate on capital lease obligations was 4.51% and 5.58% as of September 30, 2017 and October 1, 2016, respectively. The Neenah Design Center capital lease that commenced during fiscal 2017 resulted in a non-cash transaction of approximately $15.7 million and is reflected in the current portion of long-term debt and capital lease obligations, as well as in long-term debt and capital lease obligations, net of current portion, on the accompanying Consolidated Balance Sheets as of September 30, 2017. The "Thereafter" line of the scheduled maturities of capital lease obligations table above includes an $8.6 million non-cash financing obligation related to a failed sale-leaseback of a building shell in Guadalajara, Mexico that was capitalized in fiscal 2014. This obligation will be increased by interest expense and land rent expense, and reduced by contractual payments during the 20-year lease term. As of October 1, 2016, the balance of the related financing obligation totaled $8.4 million. At the end of the 20-year lease term, the net book value of the assets will approximate the balance of the financing obligation. If the Company does not exercise both renewal options or exercises the first but not the second, it would record a loss related to the disposal of the underlying assets in operating results of $4.1 million in fiscal 2024 or $0.8 million in fiscal 2029. The future minimum payments under the remainder of the ten-year base lease agreement, as well as the two five-year renewal options, are as follows (in thousands):
2018 | $ | 1,513 |
2019 | 1,550 |
2020 | 1,589 |
2021 | 1,629 |
2022 | 1,670 |
2023 through 2024 (remainder of the ten-year base lease agreement) | 3,466 |
| $ | 11,417 |
2025 through 2029 (first five-year renewal option) | 9,451 |
2030 through 2034 (second five-year renewal option) | 10,870 |
Total | $ | 31,738 |

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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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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