Debt and Credit Facility

12 Months Ended

Mar. 28, 2020

Debt Disclosure [Abstract]

Debt and Credit Facility

Debt and Credit Facility

2021 Notes

On March 12, 2014, the Company issued the 2021 Notes at a discounted price of 99.281% of par. Interest on the 2021 Notes is payable semi-annually on March 15 and September 15. The effective interest rate of the 2021 Notes is 3.12%.

The Company received net proceeds of $495.4 million from issuance of the 2021 Notes, after the debt discounts and deduction of debt issuance costs. The debt discounts and issuance costs are amortized to interest expense over the term of the 2021 Notes. As of March 28, 2020, the remaining term of the 2021 Notes is 1.0 years.

The following table summarizes the carrying value of the 2021 Notes in the Company's consolidated balance sheets:

(In thousands)	March 28, 2020			March 30, 2019
Principal amount of the 2021 Notes	$	500,000		$	500,000
Unamortized discount of the 2021 Notes	(517		)	(1,063		)
Unamortized debt issuance costs associated with the 2021 Notes	(223		)	(467		)
Carrying value of the 2021 Notes	$	499,260		$	498,470

Interest expense related to the 2021 Notes was included in interest and other income (expense), net on the consolidated statements of income as follows:

	Years Ended
(In thousands)	March 28, 2020		March 30, 2019		March 31, 2018
Contractual coupon interest	$	15,000	$	15,000	$	15,000
Amortization of debt issuance costs	244		244		244
Amortization of debt discount, net	546		530		514
Total interest expense related to the 2021 Notes	$	15,790	$	15,774	$	15,758

2024 Notes

On May 30, 2017, the Company issued the 2024 Notes at a discounted price of 99.887% of par. Interest on the 2024 Notes is payable semi-annually on June 1 and December 1. The effective interest rate of the 2024 Notes is 2.97%.

The Company received net proceeds of $745.2 million from the issuance of the 2024 Notes, after the debt discount and deduction of debt issuance costs. The debt discounts and issuance costs are amortized to interest expense over the term of the 2024 Notes. As of March 28, 2020, the remaining term of the 2024 Notes is approximately 4.2 years.

In relation to the issuance of the 2024 Notes, the Company entered into interest rate swap contracts with certain independent financial institutions, whereby the Company pays on a semi-annual basis, a variable interest rate equal to the three-month London Interbank Offered Rate (LIBOR) plus 91.43 bps, and receives on a semi-annual basis, interest income at a fixed interest rate of 2.950%. The Company incurred a net interest expense of $923.0 thousand during the twelve months ended March 28, 2020 and incurred a net interest expense of $3.8 million during the twelve months ended March 30, 2019, respectively, from the interest rate swap contracts, which was included in interest and other income (expense), net on the consolidated statements of income. During the first quarter of fiscal 2020, the Company sold the interest rate swap contracts for an immaterial gain. The gain is being amortized as a reduction to interest expense over the remaining life of the 2024 Notes.

The following table summarizes the carrying value of the 2024 Notes in the Company's consolidated balance sheets:

(In thousands)	March 28, 2020			March 30, 2019
Principal amount of the 2024 Notes	$	750,000		$	750,000
Unamortized discount of the 2024 Notes	(525		)	(642		)
Unamortized debt issuance costs associated with the 2024 Notes	(2,365		)	(2,932		)
Carrying value of the 2024 Notes	747,110			746,426
Fair value hedge adjustment - interest rate swap contracts	—			(10,089		)
Net carrying value of the 2024 Notes	$	747,110		$	736,337

Interest expense related to the 2024 Notes was included in interest and other income (expense), net on the consolidated statements of income as follows:

	Years Ended
(In thousands)	March 28, 2020		March 30, 2019		March 31, 2018
Contractual coupon interest	$	22,873	$	25,875	$	14,122
Amortization of debt issuance costs	567		568		473
Amortization of debt discount	117		113		92
Total interest expense related to the 2024 Notes	$	23,557	$	26,556	$	14,687

Revolving Credit Facility

On December 7, 2016, the Company entered into a $400.0 million senior unsecured revolving credit facility that, upon certain conditions, may be extended by an additional $150.0 million, with a syndicate of banks (expiring in December 2021). Borrowings under the credit facility will bear interest at a benchmark rate plus an applicable margin based upon the Company's credit rating. In connection with the credit facility, the Company is required to maintain certain financial and non-financial covenants. As of March 28, 2020, the Company had made no borrowings under this credit facility and was not in violation of any of the covenants.