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Debt (Notes) | 12 Months Ended
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Jan. 02, 2021
Debt Disclosure [Abstract] |
Indebtedness | DEBT Total debt consists of the following obligations:
(In millions) | January 2, 2021 |  | December 28, 2019
Term Loan A, due December 6, 2023 | $ | 180.0 |  |  | $ | 192.5 |
Senior Notes, 5.000% interest, due September 1, 2026 | 250.0 |  |  | 250.0 |
Senior Notes, 6.375% interest, due May 15, 2025 | 300.0 |  |  | — |
Borrowings under revolving credit agreements | — |  |  | 360.0 |
Unamortized deferred financing costs | (7.5) |  |  | (4.1) |
Total debt | $ | 722.5 |  |  | $ | 798.4 |
On May 5, 2020, the Company entered into a Second Amendment (the “Amendment”) which amended its senior credit facility, which had previously been amended and restated as of December 6, 2018 (as so amended by the Amendment, the “Amended Senior Credit Facility”). In connection with the Amendment, the Company borrowed $171.0 million in aggregate principal amount of an incremental term loan (the “Incremental Term Loan”). The Incremental Term Loan was fully repaid by the end of fiscal 2020. The Amended Senior Credit Facility also includes a $200.0 million term loan facility (“Term Loan A”) and an $800.0 million Revolving Credit Facility, both with maturity dates of December 6, 2023, that remain unchanged as a result of the Amendment. The Amended Senior Credit Facility’s debt capacity is limited to an aggregate debt amount (including outstanding term loan principal and revolver commitment amounts in addition to permitted incremental debt) not to exceed $1,750.0 million, unless certain specified conditions set forth in the Credit Agreement are met. Term Loan A requires quarterly principal payments with a balloon payment due on December 6, 2023. The scheduled principal payments due over the next 12 months total $10.0 million as of January 2, 2021 and are recorded as current maturities of long-term debt on the consolidated balance sheets. The Revolving Credit Facility allows the Company to borrow up to an aggregate amount of $800.0 million, which includes a $200.0 million foreign currency subfacility under which borrowings may be made, subject to certain conditions, in Canadian dollars, British pounds, euros, Hong Kong dollars, Swedish kronor, Swiss francs and such additional currencies as are determined in accordance with the Credit Agreement. The Revolving Credit Facility also includes a $50.0 million swingline subfacility and a $50.0 million letter of credit subfacility. The Company also had outstanding letters of credit under the Revolving Credit Facility of $6.1 million and $5.7 million as of January 2, 2021 and December 28, 2019, respectively. These outstanding borrowings and letters of credit reduce the borrowing capacity under the Revolving Credit Facility. The interest rates applicable to amounts outstanding under Term Loan A and to U.S. dollar denominated amounts outstanding under the Revolving Credit Facility will be, at the Company’s option, either (1) the Alternate Base Rate plus an Applicable Margin as determined by the Company’s Consolidated Leverage Ratio, within a range of 0.125% to 1.000%, or (2) the Eurocurrency Rate plus an Applicable Margin as determined by the Company’s Consolidated Leverage Ratio, within a range of 1.125% to 2.000% (all capitalized terms used in this sentence are as defined in the Credit Agreement). At January 2, 2021, Term Loan A had weighted-average interest rate of 2.00%. The obligations of the Company pursuant to the Credit Agreement are guaranteed by substantially all of the Company’s material domestic subsidiaries and secured by substantially all of the personal and real property of the Company and its material domestic subsidiaries, subject to certain exceptions. The Amended Senior Credit Facility also contains certain affirmative and negative covenants, including covenants that limit the ability of the Company and its Restricted Subsidiaries to, among other things: incur or guarantee indebtedness; incur liens; pay dividends or repurchase stock; enter into transactions with affiliates; consummate asset sales, acquisitions or mergers; prepay certain other indebtedness; or make investments, as well as covenants restricting the activities of certain foreign subsidiaries of the Company that hold intellectual property related assets. Further, the Amended Senior Credit Facility requires compliance with the following financial covenants: a maximum Consolidated Leverage Ratio and a minimum Consolidated Interest Coverage Ratio (all capitalized terms used in this paragraph are as defined in the Amended Senior Credit Facility). As of January 2, 2021, the Company was in compliance with all covenants and performance ratios under the Amended Senior Credit Facility. On May 11, 2020 the Company issued $300.0 million aggregate principal amount of 6.375% senior notes due on May 15, 2025. Related interest payments are due semi-annually beginning on November 15, 2020. These senior notes are guaranteed by substantially all of the Company’s domestic subsidiaries The Company has $250.0 million of senior notes outstanding that are due on September 1, 2026. These senior notes bear interest at 5.00% and related interest payments are due semi-annually. The Senior Notes are guaranteed by substantially all of the Company’s domestic subsidiaries. The Company has a foreign revolving credit facility with aggregate available borrowing s of $4.0 million that are un committed and, therefore, each borrowing against the facility is subject to approval by the lender. As of January 2, 2021 and December 28, 2019, there were no borrowings against this credit facility. The Company included in interest expense the amortization of deferred financing costs of $2.7 million, $1.6 million, and $2.8 million in fiscal years 2020, 2019 and 2018, respectively. Annual maturities of debt for the fiscal years subsequent to January 2, 2021 are as follows:
(In millions) | 2021 |  | 2022 |  | 2023 |  | 2024 |  | 2025 |  | Thereafter
Annual maturities of debt | $ | 10.0 |  |  | $ | 10.0 |  |  | $ | 160.0 |  |  | $ | — |  |  | $ | 300.0 |  |  | $ | 250.0 |

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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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