Long Term Debt

3 Months Ended

May 30, 2020

Debt Disclosure [Abstract]

Long Term Debt

Long Term Debt

Senior Unsecured Notes

On July 17, 2014, the Company issued $300 million aggregate principal amount of 3.749% senior unsecured notes due August 1, 2024, $300 million aggregate principal amount of 4.915% senior unsecured notes due August 1, 2034 and $900 million aggregate principal amount of 5.165% senior unsecured notes due August 1, 2044 (collectively, the "Notes"). Interest on the Notes is payable semi-annually on February 1 and August 1 of each year. In fiscal 2018, the Company purchased and retired approximately $4.6 million of senior unsecured notes due August 1, 2024.

The Notes were issued under an indenture (the "Base Indenture"), as supplemented by a first supplemental indenture (together, with the Base Indenture, the "Indenture"), which contains various restrictive covenants, which are subject to important limitations and exceptions that are described in the Indenture. The Company was in compliance with all covenants related to the Notes as of May 30, 2020.

Revolving Credit Agreement

On November 14, 2017, the Company replaced its existing $250 million five year senior unsecured revolving credit facility with various lenders with a new $250 million five year senior unsecured revolving credit facility ("Revolver") with various lenders maturing November 14, 2022. The Revolver had essentially the same terms and requirements as the prior revolving credit facility. During the three months ended May 30, 2020, the Company drew down the remaining $236.4 million of available funds under the Revolver, after giving effect to outstanding letters of credit. Subsequent to May 30, 2020, on June 19, 2020, the Revolver was replaced with a secured asset-based revolving credit facility (See “Subsequent Events,” Note 19).

Deferred financing costs associated with the Notes and the Revolver of approximately $10.5 million were capitalized. In the accompanying Consolidated Balance Sheets, the deferred financing costs are included in long term debt, net of amortization, for the Notes, and are included in other assets, net of amortization, for the Revolver. These deferred financing costs for the Notes and the Revolver are being amortized over the term of each of the Notes and the term of the Revolver and such amortization is included in interest expense, net in the Consolidated Statements of Earnings. Interest expense related to the Notes and the Revolver, including the commitment fee and the amortization of deferred financing costs, was approximately $18.2 million for both the three months ended May 30, 2020 and June 1, 2019.

Lines of Credit

At May 30, 2020, the Company maintained two uncommitted lines of credit of $100 million each, with expiration dates of August 30, 2020 and February 21, 2021, respectively. These uncommitted lines of credit are currently and are expected to be used for letters of credit in the ordinary course of business. During the first three months of fiscal 2020, the Company did not have any direct borrowings under the uncommitted lines of credit. Subsequent to May 30, 2020, both lines of credit were canceled as a result of the secured asset-based revolving credit facility (See “Subsequent Events,” Note 19).