Long-Term Debt

12 Months Ended

Jan. 03, 2020

Long-term Debt, Current and Noncurrent [Abstract]

DEBT

Debt consisted of the following:



At the End of Fiscal Year		Effective interest rate
(In millions, except percentages)	Date of Issuance	for fiscal 2019	2019			2018
Senior Notes:
2023 Senior Notes, 4.15%, due June 2023	June 2018	4.36%	$	300.0		$	300.0
2028 Senior Notes, 4.90%, due June 2028	June 2018	5.04%	600.0			600.0
2024 Senior Notes, 4.75%, due December 2024	November 2014	4.95%	400.0			400.0
Credit Facilities:
2018 Credit Facility, floating rate:
Term Loan, due May 2021	May 2018	3.25%	225.0			425.0
Revolving Credit Facility, due May 2023	May 2018	3.47%	110.0			—
Uncommitted facilities, floating rate		1.54%	218.7			255.9
Promissory notes and other debt			0.3			1.0
Unamortized discount and issuance costs			(10.8		)	(13.4		)
Total debt			1,843.2			1,968.5
Less: Short-term debt			219.0			256.2
Long-term debt			$	1,624.2		$	1,712.3

Each of the Company's debt agreements requires it to maintain compliance with certain debt covenants, all of which the Company was in compliance with at the end of fiscal 2019.

Debt Maturities:

At the end of fiscal 2019, the Company's debt maturities based on outstanding principal were as follows (in millions):



Year Payable
2020	$	219.0
2021	225.0
2022	—
2023	410.0
2024	400.0
Thereafter	600.0
Total	$	1,854.0

Senior Notes:

All series of Senior Notes in the above table bear interest that is payable semi-annually in June and December of each year. For the 2023 and 2028 Senior Notes, the interest rate is subject to adjustment from time to time if Moody’s or S&P (or, if applicable, a substitute rating agency) downgrades (or subsequently upgrades) its rating assigned to the notes.

Senior Notes are unsecured and rank equally in right of payment with all of the Company's other senior unsecured indebtedness. The Company may redeem the notes of each series of Senior Notes at its option in whole or in part at any time. Such indenture also contains covenants limiting the Company’s ability to create certain liens, enter into sale and lease-back transactions, and consolidate or merge with or into, or convey, transfer, or lease all or substantially all of the Company’s properties and assets, each subject to certain exceptions.

2018 Credit Facility:

The Credit Facility in the above table provides for unsecured credit facilities in the aggregate principal amount of $1.75 billion, which is comprised of $1.25 billion revolving credit facility maturing May 2023 and $500.0 million delayed draw term loan facility that matures on the third anniversary of the funding date. The Company may request an additional loan facility up to $500.0 million prior to the maturity of the Credit Facility and subject to approval.

The Company may borrow funds under the 2018 Credit Facility in U.S. Dollars in the case of the Term Loan and U.S. Dollars, Euros, or in certain other agreed currencies in the case of the Revolving Credit Facility. Borrowings will bear interest, at the Company’s option, at either: (a) the alternate base rate, which is defined as a fluctuating rate per annum equal to the greatest of (i) the prime rate then in effect, (ii) the federal funds rate then in effect, plus 0.50% per annum, or (iii) an adjusted LIBOR rate determined on the basis of a one-month interest period, plus 1.00%, in each case, plus a margin of between 0.00% and 0.875%; (b) an adjusted LIBOR rate (based on one, two, three or six-month interest periods), plus a margin of between 1.00% and 1.875%; or (c) an adjusted EURIBOR rate (based on one, two, three or six-month interest periods), plus a margin of between 1.00% and 1.875%. The applicable margin in each case is determined based on either the Company’s credit rating at such time or the Company’s leverage ratio as of its most recently ended fiscal quarter, whichever results in more favorable pricing to the Company. Interest is payable quarterly in arrears with respect to borrowings bearing interest at the alternate base rate, or on the last day of an interest period, but at least every three months, with respect to borrowings bearing interest at LIBOR rate or EURIBOR rate.

The 2018 Credit Facility also contains customary affirmative and negative covenants including, among other requirements, negative covenants that restrict the Company’s and its subsidiaries’ ability to create liens and enter into sale and leaseback transactions and that restrict its subsidiaries’ ability to incur indebtedness. Further, the 2018 Credit Facility contains financial covenants that require the Company to maintain a minimum interest coverage of not less than 3.50:1.00 and a current maximum leverage ratio of not greater than 3.75:1.00.

Uncommitted Facilities:

The Company has two $75.0 million and one €100.0 million revolving credit facilities, which are uncommitted (the "Uncommitted Facilities") at the end of fiscal 2019. Generally, these uncommitted facilities may be redeemed upon demand. Uncommitted facilities are classified as short-term debt in the Consolidated Balance Sheet. The weighted average interest rate was 1.54% and 2.16% at the end of fiscal 2019 and 2018, respectively.

Promissory Notes and Other Debt

At the end of fiscal 2019 the Company had promissory notes and other notes payable totaling approximately $0.3 million classified as short-term in the Consolidated Balance Sheet. At the end of fiscal 2018, the Company had promissory notes and other payables totaling $1.0 million, of which $0.3 million was classified as short-term in the Consolidated Balance Sheet.