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Long-term Borrowings
 3 Months Ended
Apr. 02, 2023
Debt Disclosure [Abstract]  
Long-term Borrowings Long-term Borrowings
The components of borrowings were as follows:
(In millions)April 2, 2023January 1, 2023
Term Loan$2,595.3 $2,646.9 
Financing lease obligation 0.7 0.8 
Other long-term borrowings1.0 1.2 
Unamortized deferred financing costs(9.9)(10.6)
Total borrowings2,587.1 2,638.3 
Less: current portion(207.5)(207.5)
Long-term borrowings$2,379.6 $2,430.8 
The credit agreement, dated May 27, 2022, by and among the Company, as borrower, Bank of America, N.A., as administrative agent and swing line lender, and the other lenders and L/C issuers party thereto (the “Credit Agreement”) consists of a $2,750.0 million senior secured term loan facility (the “Term Loan”) and an $800.0 million revolving credit facility (the “Revolving Credit Facility” and with the Term Loan, the “Financing”). As of April 2, 2023, letters of credit issued under the Revolving Credit Facility totaled $13.0 million, which reduced the available amount under the Revolving Credit Facility to $787.0 million.
The Credit Agreement contains affirmative and negative covenants that are customary for credit agreements of this nature. The negative covenants include, among other things, limitations on asset sales, mergers, indebtedness, liens, investments and transactions with affiliates. The Credit Agreement contains two financial covenants: (i) a maximum Consolidated Leverage Ratio (as defined in the Credit Agreement) as of the last day of each fiscal quarter of (a) 4.50 to 1.00 for the first four fiscal quarters ending after the closing date of the Credit Agreement (the “Initial Measurement Period”), (b) 4.00 to 1.00 for the first four fiscal quarters ending after the Initial Measurement Period and (c) 3.50 to 1.00 for each fiscal quarter thereafter; and (ii) a minimum Consolidated Interest Coverage Ratio (as defined in the Credit Agreement) of 3.00 to 1.00 as of the end of any fiscal quarter for the most recently completed four fiscal quarters. The Company was in compliance with the financial covenants as of April 2, 2023.
The following table provides the detailed amounts within Interest expense, net for the three months ended April 2, 2023 and April 3, 2022.
Three Months Ended
(In millions)April 2, 2023April 3, 2022
Term Loan$40.9 $— 
Revolving Credit Facility0.5 0.1 
Amortization of deferred financing costs0.8 0.1 
Derivative instruments and other(4.5)1.1 
Interest income(1.0)(0.3)
Interest expense, net$36.7 $1.0