Debt and Credit Facility

9 Months Ended

Dec. 28, 2019

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

Debt and Credit Facility

2021 Notes

On March 12, 2014, the Company issued the 2021 Notes at a discounted price of 99.281% of par. Interest on the 2021 Notes is payable semi-annually on March 15 and September 15.

The Company received net proceeds of $495.4 million from issuance of the 2021 Notes, after the debt discount and deduction of debt issuance costs. The debt discounts and issuance costs are amortized to interest expense over the terms of the 2021 Notes. As of December 28, 2019, the remaining term of the 2021 Notes is 1.2 years.

The following table summarizes the carrying value of the 2021 Notes as of December 28, 2019 and March 30, 2019:

(In thousands)	December 28, 2019			March 30, 2019
Principal amount of the 2021 Notes	$	500,000		$	500,000
Unamortized discount of the 2021 Notes	(654		)	(1,063		)
Unamortized debt issuance costs associated with 2021 Notes	(285		)	(467		)
Carrying value of the 2021 Notes	$	499,061		$	498,470

Interest expense related to the 2021 Notes was included in interest and other income (expense), net on the condensed consolidated statements of income as follows:

	Three Months Ended				Nine Months Ended
(In thousands)	December 28, 2019		December 29, 2018		December 28, 2019		December 29, 2018
Contractual coupon interest	$	3,750	$	3,750	$	11,250	$	11,250
Amortization of debt issuance costs	61		61		182		183
Amortization of debt discount, net	137		133		409		396
Total interest expense related to the 2021 Notes	$	3,948	$	3,944	$	11,841	$	11,829

2024 Notes

On May 30, 2017, the Company issued the 2024 Notes at a discounted price of 99.887% of par. Interest on the 2024 Notes is payable semi-annually on June 1 and December 1.

The Company received $745.2 million from the issuance of the 2024 Notes, after the debt discount and deduction of debt issuance costs. The debt discounts and issuance costs are amortized to interest expense over the term of the 2024 Notes. As of December 28, 2019, the remaining term of the 2024 Notes is approximately 4.5 years.

In relation to the issuance of the 2024 Notes, the Company entered into interest rate swap contracts with certain independent financial institutions, whereby the Company paid on a semi-annual basis, a variable interest rate equal to the three-month London Interbank Offered Rate (LIBOR) plus 91.43 bps, and received on a semi-annual basis, interest income at a fixed interest rate of 2.950%. The Company did not incur any interest expense for the three months ended December 28, 2019 but incurred a net interest expense of $923 thousand for the nine months ended December 28, 2019, from the interest rate swap contracts, which was included in interest and other income (expense), net on the condensed consolidated statements of income. The Company incurred a net interest expense of $939 thousand and $2.4 million for the three and nine months ended December 29, 2018, respectively, from the interest rate swap contracts, which was included in interest and other income (expense), net on the condensed consolidated statements of income. During the first quarter of fiscal 2020, the Company sold the interest rate swap contracts for an immaterial gain. The gain is being amortized as a reduction to interest expense over the remaining life of the 2024 Notes.

The following table summarizes the carrying value of the 2024 Notes as of December 28, 2019 and March 30, 2019:

(In thousands)	December 28, 2019			March 30, 2019
Principal amount of the 2024 Notes	$	750,000		$	750,000
Unamortized discount of the 2024 Notes	(555		)	(642		)
Unamortized debt issuance costs associated with 2024 Notes	(2,506		)	(2,932		)
Carrying Value of the 2024 Notes	$	746,939		$	746,426
Fair value hedge adjustment — interest rate swap contracts	—			(10,089		)
Net carrying value of the 2024 Notes	$	746,939		$	736,337

Interest expense related to the 2024 Notes was included in interest and other income (expense), net on the condensed consolidated statements of income as follows:

	Three Months Ended				Nine Months Ended
(In thousands)	December 28, 2019		December 29, 2018		December 28, 2019		December 29, 2018
Contractual coupon interest (including interest rate swap, net)	$	5,444	$	6,470	$	17,429	$	19,026
Amortization of debt issuance costs	142		142		426		426
Amortization of debt discount, net	29		28		87		84
Total interest expense related to the 2024 Notes	$	5,615	$	6,640	$	17,942	$	19,536

Revolving Credit Facility

On December 7, 2016, the Company entered into a $400.0 million senior unsecured revolving credit facility that, upon certain conditions, may be extended by an additional $150.0 million, with a syndicate of banks (expiring in December 2021). Borrowings under the credit facility will bear interest at a benchmark rate plus an applicable margin based upon the Company’s credit rating. In connection with the credit facility, the Company is required to maintain certain financial and nonfinancial covenants. As of December 28, 2019, the Company had made no borrowings under this credit facility and was not in violation of any of the covenants.