Debt and Credit Facility

9 Months Ended

Jan. 02, 2021

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 3.115%. The coupon interest rate of the 2021 Notes is 3.000%.

The Company received net proceeds of $495.4 million from issuance of the 2021 Notes, after the debt discount and deduction of debt issuance costs. The debt discounts and issuance costs are amortized to interest expense over the terms of the 2021 Notes. As of January 2, 2021, the remaining term of the 2021 Notes is 0.2 years.

The following table summarizes the carrying value of the 2021 Notes as of January 2, 2021 and March 28, 2020:

(In thousands)	January 2, 2021		March 28, 2020
Principal amount of the 2021 Notes	$	500,000	$	500,000
Unamortized discount of the 2021 Notes	(95)		(517)
Unamortized debt issuance costs associated with 2021 Notes	(40)		(223)
Carrying value of the 2021 Notes	$	499,865	$	499,260

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

	Three Months Ended				Nine Months Ended
(In thousands)	January 2, 2021		December 28, 2019		January 2, 2021		December 28, 2019
Contractual coupon interest	$	3,750	$	3,750	$	11,250	$	11,250
Amortization of debt issuance costs	61		61		183		182
Amortization of debt discount, net	142		137		422		409
Total interest expense related to the 2021 Notes	$	3,953	$	3,948	$	11,855	$	11,841

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 2.968%. The coupon interest rate of the 2024 Notes is 2.950%.

The Company received $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 January 2, 2021, the remaining term of the 2024 Notes is approximately 3.4 years.

The following table summarizes the carrying value of the 2024 Notes as of January 2, 2021 and March 28, 2020:

(In thousands)	January 2, 2021		March 28, 2020
Principal amount of the 2024 Notes	$	750,000	$	750,000
Unamortized discount of the 2024 Notes	(436)		(525)
Unamortized debt issuance costs associated with 2024 Notes	(1,939)		(2,365)
Carrying Value of the 2024 Notes	$	747,625	$	747,110

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

	Three Months Ended				Nine Months Ended
(In thousands)	January 2, 2021		December 28, 2019		January 2, 2021		December 28, 2019
Contractual coupon interest	$	5,444	$	5,444	$	16,331	$	17,429
Amortization of debt issuance costs	142		142		426		426
Amortization of debt discount, net	30		29		89		87
Total interest expense related to the 2024 Notes	$	5,616	$	5,615	$	16,846	$	17,942

2030 Notes

On May 19, 2020, the Company issued the 2030 Notes at a discounted price of 99.973% of par. Interest on the 2030 Notes is payable semi-annually on June 1 and December 1. The effective interest rate of the 2030 Notes is 2.378%. The coupon interest rate of the 2030 Notes is 2.375%.

The Company received $744.4 million from the issuance of the 2030 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 2030 Notes. As of January 2, 2021, the remaining term of the 2030 Notes is approximately 9.4 years.

The following table summarizes the carrying value of the 2030 Notes as of January 2, 2021:

(In thousands)	January 2, 2021
Principal amount of the 2030 Notes	$	750,000
Unamortized discount of the 2030 Notes	(191)
Unamortized debt issuance costs associated with 2030 Notes	(5,057)
Carrying Value of the 2030 Notes	$	744,752

Interest expense related to the 2030 Notes was included in interest and other income (expense), net on the condensed consolidated statements of income as follows:

	Three Months Ended				Nine Months Ended
(In thousands)	January 2, 2021		December 28, 2019		January 2, 2021		December 28, 2019
Contractual coupon interest	$	4,521	$	—	$	11,086	$	—
Amortization of debt issuance costs	134		—		313		—
Amortization of debt discount, net	4		—		11		—
Total interest expense related to the 2030 Notes	$	4,659	$	—	$	11,410	$	—

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 nonfinancial covenants. On December 1, 2020, the Company terminated the senior unsecured revolving credit facility. The Company had made no borrowings under this credit facility and was not in violation of any of the covenants before the termination.