XML 23 R15.htm IDEA: XBRL DOCUMENT v3.24.2.u1
DEBT
 6 Months Ended
Jun. 29, 2024
Debt Disclosure [Abstract]  
DEBT

NOTE 6. DEBT

On May 9, 2024, the Company entered into the Fourth Amended and Restated Credit Agreement (the “Fourth Amended Credit Agreement”), which provides for an $800 million asset-based revolving credit facility (the “New Facility”). The New Facility matures on May 9, 2029. The Fourth Amended Credit Agreement replaced the Company’s then existing amended and restated credit agreement, the Third Amended and Restated Credit Agreement (the “Third Amended Credit Agreement”), that was due to mature in April 2025. The Company retired $53 million of outstanding asset-based first-in, last-out term loan facility (the “FILO Term Loan Facility”) loans under the Third Amended Credit Agreement prior to its amendment, resulting in no remaining FILO Term Loan Facility loans. The Company incurred approximately $5 million of new debt issuance costs for the Fourth Amended Credit Agreement, which will be recognized in interest expense through May 2029, the maturity date of the New Facility. The Company recognized less than $1 million of loss from modification of debt related to this transaction in the second quarter of 2024, which represented the write-off of certain unamortized debt issuance costs as of the closing date of the transaction.

As provided by the Fourth Amended Credit Agreement, available amounts that can be borrowed at any given time are based on percentages of certain outstanding accounts receivable, credit card receivables, inventory, and the cash value of company-owned life insurance policies. During the first half of 2024, the Company elected to draw down $246 million from its credit facilities under the Third and Fourth Amended Credit Agreements for working capital management. Of this amount, $187 million was repaid during the first half of 2024, resulting in $59 million of revolving loans outstanding under the New Facility at June 29, 2024. At June 29, 2024, the Company had $41 million of outstanding standby letters of credit and $641 million of available credit under the Fourth Amended Credit Agreement. The Company was in compliance with all applicable covenants at June 29, 2024.