Borrowings and Credit Arrangements

The Company’s borrowings consisted of the following:



	December 31, 2016		September 24, 2016
Current debt obligations, net of debt discount:
Term Loan	$	93.1	$	83.8
Securitization Program	188.0		200.0
Convertible Notes	426.2		12.2
Total current debt obligations	$	707.3	$	296.0
Long-term debt obligations, net of debt discount:
Term Loan	1,281.2		1,308.2
2022 Senior Notes	978.8		977.7
Convertible Notes	355.6		763.5
Total long-term debt obligations	$	2,615.6	$	3,049.4
Total debt obligations	$	3,322.9	$	3,345.4

Credit Agreement

Borrowings outstanding under the Credit Agreement for the three months ended December 31, 2016 and December 26, 2015 had weighted-average interest rates of 2.05% and 1.95%, respectively. The interest rate on the outstanding Term Loan borrowing at December 31, 2016 was 2.27%. Interest expense under the Credit Agreement aggregated $9.8 million for the three months ended December 31, 2016, which includes non-cash interest expense of $1.1 million related to the amortization of the deferred issuance costs and accretion of the debt discount. Interest expense under the Credit Agreement aggregated $10.0 million for the three months ended December 26, 2015, which includes $1.1 million of non-cash interest expense related to the amortization of the deferred issuance costs and accretion of the debt discount.

The Credit Agreement contains two financial covenants, a total net leverage ratio and an interest coverage ratio, both of which are measured as of the last day of each fiscal quarter. These terms, and the calculation thereof, are defined in further detail in the Credit Agreement. As of December 31, 2016, the Company was in compliance with these covenants.

2022 Senior Notes

The Company's 5.250% Senior Notes due 2022 (the “2022 Senior Notes”) mature on July 15, 2022 and bear interest at the rate of 5.250% per year, payable semi-annually on January 15 and July 15 of each year, commencing on January 15, 2016. The Company recorded interest expense of $15.1 million and $14.0 million for the three months ended December 31, 2016 and December 26, 2015, respectively, which includes non-cash interest expense of $1.0 million related to the amortization of the deferred issuance costs and accretion of the debt discount for both periods.

Convertible Notes

On November 9, 2016, the Company announced that pursuant to the terms of the indenture for the 2.00% Convertible Exchange Senior Notes due 2037, issued in November 2010 (the “2010 Notes”), holders of the 2010 Notes, had the option of requiring the Company to repurchase their 2010 Notes on December 16, 2016 at a repurchase price payable in cash equal to 100% of the original principal amount of the 2010 Notes. None of the 2010 Notes were surrendered for repurchase pursuant to the option.

In addition, the Company also announced on November 9, 2016 that, pursuant to the terms of the indenture, it had elected to redeem, on December 19, 2016, all of the then outstanding 2010 Notes at a redemption price payable in cash equal to 100% of the accreted principal amount of the 2010 Notes. Holders of the 2010 Notes also had a right to convert their 2010 Notes. As of December 16, 2016, holders of $8.4 million in aggregate principal of the 2010 Notes surrendered notes for conversion, which remained outstanding as of December 31, 2016 and will be paid in cash in the second quarter of fiscal 2017. This amount is included within the current portion of long term debt on the Consolidated Balance Sheet. The premium on the conversion price for the 2010 Notes will also be paid in cash in the second quarter of fiscal 2017 based on the average trading price of the Company's common stock during a thirty-day trading period. The Company also paid $6.4 million in cash for conversion requests in the first quarter of fiscal 2017, which included $2.5 million of premium.

The term "Convertible Notes" refers to the 2010 Notes, the 2012 Notes and the 2013 Notes.

Interest expense under the Convertible Notes was as follows:



	Three Months Ended
	December 31, 2016		December 26, 2015
Amortization of debt discount	$	5.2	$	6.4
Amortization of deferred financing costs	0.2		0.3
Principal accretion	4.6		4.1
Non-cash interest expense	10.0		10.8
2.00% accrued interest (cash)	2.0		3.2
	$	12.0	$	14.0

Accounts Receivable Securitization Program

Borrowings under the Securitization Program for the three month period ended December 31, 2016 had a weighted-average interest rate of 1.25%. Interest expense under the Securitization Program aggregated $0.7 million for the three month period ended December 31, 2016. The interest rate on the amounts outstanding at December 31, 2016 was 1.47%. On December 22, 2016, the Company paid down $12.0 million under the Securitization Program as its qualified borrowing base decreased.