Debt and Other Obligations (Tables)
|
12 Months Ended |
Dec. 30, 2017 |
|---|
| Debt Disclosure [Abstract] |
|
| Schedule of Debt and Other Obligations |
The Company’s total debt as of December 30, 2017 and December 31, 2016 consisted of:
|
|
|
|
|
|
|
|
|
|
December 30,
2017 |
|
December 31,
2016 |
|
(In millions) |
6.75% Notes |
$ |
166 |
|
|
$ |
196 |
|
7.50% Notes |
347 |
|
|
350 |
|
7.00% Notes |
311 |
|
|
416 |
|
2.125% Notes |
805 |
|
|
805 |
|
Secured Revolving Line of Credit |
70 |
|
|
— |
|
Total debt (principal amount) |
1,699 |
|
|
1,767 |
|
Unamortized debt discount associated with 2.125% Notes |
(286 |
) |
|
(308 |
) |
Unamortized debt issuance costs |
(19 |
) |
|
(25 |
) |
Other |
1 |
|
|
1 |
|
Total debt (net) |
1,395 |
|
|
1,435 |
|
Less: current portion |
(70 |
) |
|
— |
|
Total debt, less current portion |
$ |
1,325 |
|
|
$ |
1,435 |
|
|
| Convertible Debt |
The 2.125% Notes consisted of the following:
|
|
|
|
|
|
|
|
|
December 30,
2017 |
December 31,
2016 |
|
(In millions) |
Principal amounts: |
|
|
Principal |
$ |
805 |
|
$ |
805 |
|
Unamortized debt discount(1)
|
(286 |
) |
(308 |
) |
Unamortized debt issuance costs |
(12 |
) |
(14 |
) |
Net carrying amount |
$ |
507 |
|
$ |
483 |
|
Carrying amount of the equity component, net(2)
|
$ |
305 |
|
$ |
305 |
|
|
|
(1) |
Included in the consolidated balance sheets within Long-term debt, net and amortized over the remaining life of the notes using the effective interest rate method. |
|
|
(2) |
Included in the consolidated balance sheets within additional paid-in capital, net of $9 million in equity issuance costs.
|
The following table sets forth total interest expense recognized related to the 2.125% Notes for the year ended December 30, 2017:
|
|
|
|
|
|
|
|
|
December 30,
2017 |
December 31,
2016 |
|
(In millions) |
Contractual interest expense |
$ |
17 |
|
$ |
5 |
|
Interest cost related to amortization of debt issuance costs |
2 |
|
— |
|
Interest cost related to amortization of the debt discount |
$ |
22 |
|
$ |
6 |
|
|
| Debt Instrument Redemption |
Starting July 1, 2019, the Company may redeem the 7.00% Notes for cash at the following specified prices plus accrued and unpaid interest:
|
|
|
|
Period |
Price as
Percentage of
Principal Amount |
Beginning on July 1, 2019 through June 30, 2020 |
103.500 |
% |
Beginning on July 1, 2020 through June 30, 2021 |
102.333 |
% |
Beginning on July 1, 2021 through June 30, 2022 |
101.167 |
% |
On July 1, 2022 and thereafter |
100.000 |
% |
|
| Secured Revolving Line Of Credit, Interest Rate Description |
Applicable Margin, if average availability is equal to or greater than 66.66% of the total commitment amount and the fixed charge coverage ratio for the most recently ended four-fiscal quarter period is greater than or equal to 1.25 to 1.00, is 0.25% for Base Rate Revolver Loans and 1.25% for LIBOR Revolver Loans. Otherwise, Applicable Margin is determined in accordance with the below table:
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|
|
|
|
|
|
|
Level |
|
Average
Availability for
Last Fiscal
Month
|
|
Base Rate
Revolver Loans:
Applicable Margin
|
|
LIBOR
Revolver Loans:
Applicable Margin
|
I |
|
greater than or equal to 66.66% of the Revolver Commitment |
|
0.25% |
|
1.25% |
II |
|
greater than or equal to 33.33% of the Revolver Commitment, less than 66.66% |
|
0.5% |
|
1.5% |
III |
|
less than 33.33% of the Revolver Commitment |
|
0.75% |
|
1.75% |
|
| Schedule of Future Payments on Debt |
As of December 30, 2017, the Company’s future debt payment obligations for the respective fiscal years were as follows:
|
|
|
|
|
|
Long Term Debt (Principal only) |
|
(In millions) |
2018 |
$ |
— |
|
2019 |
166 |
|
2020 |
— |
|
2021 |
— |
|
2022 |
347 |
|
2023 and thereafter |
1,116 |
|
Total |
$ |
1,629 |
|
|