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Debt, Finance Lease Obligations and Other Financing | 12 Months Ended
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Oct. 03, 2020
Debt and Lease Obligation [Abstract] |
Debt, Finance Lease Obligations and Other Financing | Debt, Finance Lease Obligations and Other Financing Debt and finance lease obligations as of October 3, 2020 and September 28, 2019, consisted of the following (in thousands):
|  | 2020 |  | 2019
4.05% Senior Notes, due June 15, 2025 |  | $ | 100,000 |  |  | $ | 100,000 |
4.22% Senior Notes, due June 15, 2028 |  | 50,000 |  |  | 50,000 |
Borrowings under the credit facility |  | — |  |  | 95,000 |
Term loans, due April 28, 2021 |  | 138,000 |  | —
Finance lease and other financing obligations |  | 48,435 |  |  | 44,492 |
Unamortized deferred financing fees |  | (1,631) |  |  | (1,512) |
Total obligations |  | 334,804 |  |  | 287,980 |
Less: current portion |  | (146,829) |  |  | (100,702) |
Long-term debt and finance lease obligations, net of current portion |  | $ | 187,975 |  |  | $ | 187,278 |
On June 15, 2018, the Company entered into a Note Purchase Agreement (the “2018 NPA”) pursuant to which it issued an aggregate of $150.0 million in principal amount of unsecured senior notes, consisting of $100.0 million in principal amount of 4.05% Series A Senior Notes, due on June 15, 2025, and $50.0 million in principal amount of 4.22% Series B Senior Notes, due on June 15, 2028 (collectively, the “2018 Notes”), in a private placement. The 2018 NPA includes customary operational and financial covenants with which the Company is required to comply, including, among others, maintenance of certain financial ratios such as a total leverage ratio and a minimum interest coverage ratio. The 2018 Notes may be prepaid in whole or in part at any time, subject to payment of a make-whole amount; interest on the 2018 Notes is payable semiannually. As of October 3, 2020, the Company was in compliance with the covenants under the 2018 NPA. On May 15, 2019, the Company refinanced its then-existing senior unsecured revolving credit facility by entering into a new 5-year senior unsecured revolving credit facility (referred to as the "Credit Facility"), which expanded the maximum commitment from $300.0 million to $350.0 million and extended the maturity from July 5, 2021 to May 15, 2024. The maximum commitment under the Credit Facility may be further increased to $600.0 million, generally by mutual agreement of the Company and the lenders, subject to certain customary conditions. The increase of the maximum facility is not able to be exercised until after the maturity date of the 364 day delayed draw term loans ("term loans") on April 28, 2021, as outlined in Amendment No. 1 to the Credit Agreement (the "Amendment") subsequently discussed. During fiscal 2020, the highest daily borrowing was $164.5 million; the average daily borrowings were $78.5 million. The Company borrowed $538.7 million and repaid $633.7 million of revolving borrowings under the Credit Facility during fiscal 2020. As of October 3, 2020, the Company was in compliance with all financial covenants relating to the Credit Agreement, which are generally consistent with those in the 2018 NPA discussed above. The Company is required to pay a commitment fee on the daily unused revolver credit commitment based on the Company's leverage ratio; the fee was 0.125% as of October 3, 2020. To further ensure our ability to meet our working capital and fixed capital requirements, on April 29, 2020, the Company entered into the Amendment in response to the COVID-19 outbreak, which amends the Credit Agreement, dated as of May 15, 2019. The Amendment amends certain provisions of the Credit Facility to, among other things, provide for a $138.0 million unsecured delayed draw term loans facility. Term loans borrowed under the new facility were funded in a single draw on May 4, 2020 and will mature on April 28, 2021. Outstanding term loans will bear interest, at the Company’s option, at a eurocurrency rate (subject to a floor of 1.0%) plus a margin of 1.75% per annum or at a base rate (subject to a floor of 2.0%) plus a margin of 0.75% per annum. The proceeds of the term loans were used to prepay outstanding revolving and swing line loans under the Credit Facility and for the general corporate purposes of the Company and its subsidiaries. The $138.0 million of outstanding term loans as of October 3, 2020 was subject to a 2.75% per annum interest rate. The aggregate scheduled maturities of the Company’s debt obligations as of October 3, 2020, are as follows (in thousands):
2021 | $ | 138,000 |
2022 | — |
2023 | — |
2024 | — |
2025 | 100,000 |
Thereafter | 50,000 |
Total | $ | 288,000 |
The aggregate scheduled maturities of the Company’s finance leases and other financing obligations as of October 3, 2020, are as follows (in thousands):
2021 | $ | 8,829 |
2022 | 4,219 |
2023 | 2,320 |
2024 | 522 |
2025 | 568 |
Thereafter | 31,977 |
Total | $ | 48,435 |
The Company's weighted average interest rate on finance lease obligatio ns was 17.7% and 4.8% as of October 3, 2020 and September 28, 2019, respectively. Upon adoption of ASU 2016-02, two existing build-to-suit arrangements for the facilities in Guadalajara, Mexico were reassessed to be finance leases. These leases were included in the weighted average interest rate on finance lease obligations for the fiscal year 2020. Weighted average interest rate calculations on operating and finance lease obligations according to Topic 842 are disclosed in Note 8, "Leases".

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- Definition The entire disclosure for 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. + 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
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