Debt

3 Months Ended

Apr. 01, 2023

Debt Disclosure [Abstract]

Debt

Debt

Short-Term Borrowings

The Company utilizes uncommitted lines of credit as needed for its short-term working capital fluctuations. As of April 1, 2023 and December 31, 2022, the Company had lines of credit from banks totaling $300.9 million and $298.2 million, respectively. As of April 1, 2023 and December 31, 2022, the Company had short-term debt balances outstanding related to draws on the lines of credit of $16.6 million and $9.9 million, respectively.

Long-Term Debt

A summary of long-term debt, net of unamortized debt issuance costs and unamortized original issue premium (discount), and the related weighted average interest rates is shown below (in millions):

	April 1, 2023
Debt Instrument	Long-Term Debt		Unamortized Debt Issuance Costs		Unamortized Original Issue Premium (Discount)		Long-Term Debt, Net		Weighted Average Interest Rate
3.8% Senior Notes due 2027 (the "2027 Notes")	$	550.0	$	(2.0)	$	(1.7)	$	546.3	3.885%
4.25% Senior Notes due 2029 (the "2029 Notes")	375.0		(1.9)		(0.7)		372.4		4.288%
3.5% Senior Notes due 2030 (the "2030 Notes")	350.0		(1.9)		(0.6)		347.5		3.525%
2.6% Senior Notes due 2032 (the "2032 Notes")	350.0		(2.7)		(0.7)		346.6		2.624%
5.25% Senior Notes due 2049 (the "2049 Notes")	625.0		(5.8)		13.0		632.2		5.103%
3.55% Senior Notes due 2052 (the "2052 Notes")	350.0		(3.8)		(0.5)		345.7		3.558%
Other	6.0		—		—		6.0		N/A
	$	2,606.0	$	(18.1)	$	8.8	$	2,596.7
Less — Current portion							(5.1)
Long-term debt							$	2,591.6

	December 31, 2022
Debt Instrument	Long-Term Debt		Unamortized Debt Issuance Costs		Unamortized Original Issue Premium (Discount)		Long-Term Debt, Net		Weighted Average Interest Rate
2027 Notes	$	550.0	$	(2.1)	$	(1.8)	$	546.1	3.885%
2029 Notes	375.0		(2.0)		(0.7)		372.3		4.288%
2030 Notes	350.0		(2.0)		(0.6)		347.4		3.525%
2032 Notes	350.0		(2.8)		(0.7)		346.5		2.624%
2049 Notes	625.0		(6.0)		13.2		632.2		5.103%
2052 Notes	350.0		(3.8)		(0.5)		345.7		3.558%
Other	11.8		—		—		11.8		N/A
	$	2,611.8	$	(18.7)	$	8.9	2,602.0
Less — Current portion							(10.8)
Long-term debt							$	2,591.2

Senior Notes

The issuance, maturity and interest payment dates of the Company's senior unsecured 2027 Notes, 2029 Notes, 2030 Notes, 2032 Notes, 2049 Notes and 2052 Notes (collectively, the "Notes") are shown below:

Note	Issuance Date(s)	Maturity Date	Interest Payment Dates
2027 Notes	August 2017	September 15, 2027	March 15 and September 15
2029 Notes	May 2019	May 15, 2029	May 15 and November 15
2030 Notes	February 2020	May 30, 2030	May 30 and November 30
2032 Notes	November 2021	January 15, 2032	January 15 and July 15
2049 Notes	May 2019 and February 2020	May 15, 2049	May 15 and November 15
2052 Notes	November 2021	January 15, 2052	January 15 and July 15

Covenants

Subject to certain exceptions, the indentures governing the Notes contain certain restrictive covenants that, among other things, limit the ability of the Company to: (i) create or permit certain liens and (ii) consolidate, merge or sell all or substantially all of the Company's assets. The indentures governing the Notes also provide for customary events of default.

As of April 1, 2023, the Company was in compliance with all covenants under the indentures governing the Notes.

Credit Agreement

The Company's $2.0 billion amended and restated unsecured revolving credit agreement ("Credit Agreement") expires on October 28, 2026.

As of April 1, 2023 and December 31, 2022, there were no borrowings outstanding under the Credit Agreement.

Advances under the Credit Agreement generally bear interest based on (i) the Eurocurrency Rate (as defined in the Credit Agreement) or (ii) the Base Rate (as defined in the Credit Agreement) plus a margin, determined in accordance with a pricing grid. As of April 1, 2023, the ranges and rates are as follows (in percentages):

	Eurocurrency Rate						Base Rate
					Rate as of						Rate as of
	Minimum		Maximum		April 1, 2023		Minimum		Maximum		April 1, 2023
Credit Agreement	0.925	%	1.450	%	1.125	%	0.000	%	0.450	%	0.125	%

A facility fee, which ranges from 0.075% to 0.20% of the total amount committed under the Credit Agreement, is payable quarterly.

Covenants

The Credit Agreement contains various customary representations, warranties and covenants by the Company, including, without limitation, (i) covenants regarding maximum leverage, (ii) limitations on fundamental changes involving the Company or its subsidiaries and (iii) limitations on indebtedness and liens.

As of April 1, 2023, the Company was in compliance with all covenants under the Credit Agreement.

Delayed-Draw Term Loan Facility

In December 2022, the Company entered into an unsecured $150 million committed delayed-draw term loan facility (the "Delayed-Draw Facility") that matures three years after the funding date. The Delayed-Draw Facility will be used to finance the acquisition of IGB. Advances under the Delayed-Draw Facility generally bear interest based on the Daily or Term Secured Overnight Financing Rate ("SOFR"), as defined in the Delayed-Draw Facility agreement, plus a margin determined in accordance with a pricing grid that ranges from 1.00% to 1.525%. As of April 1, 2023, there were no amounts drawn under the Delayed-Draw Facility.

On April 26, 2023, the Company provided irrevocable notice to borrow $150 million under its Delayed-Draw Facility to finance the acquisition of IGB (see Note 3, "Acquisitions").

Covenants

The Delayed-Draw Facility contains the same covenants as the Credit Agreement. As of April 1, 2023, the Company was in compliance with all covenants under the Delayed-Draw Facility.

Other Long-Term Debt

As of April 1, 2023 and December 31, 2022, other long-term debt, including the current portion, consists of amounts outstanding under an unsecured working capital loan and a finance lease agreement.

For further information related to the Company's debt, see Note 7, "Debt," to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2022.