Subsequent Events

9 Months Ended

Sep. 28, 2024

Subsequent Events [Abstract]

Subsequent Events

SUBSEQUENT EVENTS

Senior Notes and Incremental Term Loan Facility—On October 3, 2024, the Company completed a private offering of $500 million aggregate principal amount of 5.75% senior unsecured notes due April 15, 2033 (the “Senior Notes due 2033”). Additionally, on October 3, 2024, the Company further amended its term loan credit agreement. The Company issued two new term loan tranches of the term loan credit facility, one for $725 million (the “2024 Term Loan Facility”) and one for $610 million (the “2021 Term Loan Facility”). The Company used the proceeds of the Senior Notes due 2033 and the 2024 Term Loan Facility and the 2021 Term Loan Facility, and cash on hand, to pay in full the 2019 Incremental Term Loan Facility and, other than amounts that were rolled on a cashless basis into the 2021 Term Loan Facility, the 2021 Incremental Term Loan Facility. The Company incurred lender fees and third-party costs of approximately $13 million in connection with the issuance of the Senior Notes due 2033. The Company plans to apply debt modification or extinguishment accounting as applicable.

Pension Plan Termination—In October 2024, the Company began settling its obligations under the Terminating Plan through the purchase of an annuity contract from a highly rated insurance company for $414 million. Additionally, in October 2024, the Company made $254 million of lump sum payments directly to eligible participants who elected that payment option. Given that the annuity contract premium and lump sum payments do not exceed the assets of the Terminating Plan, there will be no cash contributions made by the Company. Management estimates that the Company will recognize a one-time non-cash pre-tax pension settlement charge of $124 million in the fiscal fourth quarter of 2024 related to actuarial losses previously recorded in Accumulated Other Comprehensive Loss.

Share Repurchases—For the fiscal fourth quarter through November 4, 2024, the Company repurchased 2,592,612 shares at an aggregate purchase price of approximately $160 million under the Amended Share Repurchase Program. At November 4, 2024, there was approximately $238 million in remaining funds authorized under the Amended Share Repurchase Program.