Debt and Credit Facility

3 Months Ended

Jun. 27, 2020

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 effective interest rate of the 2021 Notes is 3.115%. The coupon interest rate of the 2021 Notes is 3.000%.

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 June 27, 2020, the remaining term of the 2021 Notes is 0.7 years.

The following table summarizes the carrying value of the 2021 Notes as of June 27, 2020 and March 28, 2020:



(In thousands)	June 27, 2020		March 28, 2020
Principal amount of the 2021 Notes	$	500,000	$	500,000
Unamortized discount of the 2021 Notes	(376)		(517)
Unamortized debt issuance costs associated with 2021 Notes	(163)		(223)
Carrying value of the 2021 Notes	$	499,461	$	499,260

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
(In thousands)	June 27, 2020		June 29, 2019
Contractual coupon interest	$	3,750	$	3,750
Amortization of debt issuance costs	61		61
Amortization of debt discount, net	141		135
Total interest expense related to the 2021 Notes	$	3,952	$	3,946

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 effective interest rate of the 2024 Notes is 2.968%. The coupon interest rate of the 2024 Notes is 2.950%.

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 June 27, 2020, the remaining term of the 2024 Notes is approximately 4.0 years.

The following table summarizes the carrying value of the 2024 Notes as of June 27, 2020 and March 28, 2020:


(In thousands)	June 27, 2020		March 28, 2020
Principal amount of the 2024 Notes	$	750,000	$	750,000
Unamortized discount of the 2024 Notes	(496)		(525)
Unamortized debt issuance costs associated with 2024 Notes	(2,223)		(2,365)
Carrying Value of the 2024 Notes	$	747,281	$	747,110

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
(In thousands)	June 27, 2020		June 29, 2019
Contractual coupon interest	$	5,444	$	6,542
Amortization of debt issuance costs	142		142
Amortization of debt discount, net	29		29
Total interest expense related to the 2024 Notes	$	5,615	$	6,713

2030 Notes

On May 19, 2020, the Company issued the 2030 Notes at a discounted price of 99.973% of par. Interest on the 2030 Notes is payable semi-annually on June 1 and December 1. The effective interest rate of the 2030 Notes is 2.378%. The coupon interest rate of the 2030 Notes is 2.375%.

The Company received $744.4 million from the issuance of the 2030 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 2030 Notes. As of June 27, 2020, the remaining term of the 2030 Notes is approximately 10.0 years.

The following table summarizes the carrying value of the 2030 Notes as of June 27, 2020:


(In thousands)	June 27, 2020
Principal amount of the 2030 Notes	$	750,000
Unamortized discount of the 2030 Notes	(200)
Unamortized debt issuance costs associated with 2030 Notes	(5,329)
Carrying Value of the 2030 Notes	$	744,471

Interest expense related to the 2030 Notes was included in interest and other income (expense), net on the condensed consolidated statements of income as follows:


	Three Months Ended
(In thousands)	June 27, 2020
Contractual coupon interest	$	2,042
Amortization of debt issuance costs	45
Amortization of debt discount, net	2
Total interest expense related to the 2030 Notes	$	2,089

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 June 27, 2020, the Company had made no borrowings under this credit facility and was not in violation of any of the covenants.