Subsequent Events

9 Months Ended

Oct. 03, 2026

Subsequent Events [Abstract]

Subsequent Events

SUBSEQUENT EVENT

On November 4, 2026, the company entered into a five-year Ninth Amended and Restated Credit Agreement consisting of a $2.0 billion multicurrency revolving facility and a $1.0 billion USD Term Loan A facility (the "Credit Agreement"). The amended credit facilities mature on November 4, 2031. The Credit Agreement amends and restates the company's prior Credit Facility, which had a maturity date of April 28, 2028. A portion of the proceeds from the facilities under the Credit Agreement were used to refinance the prior Credit Facility. See Note 4 to these Notes to the Condensed Consolidated Financial Statements for further information on the company's prior Credit Facility.

The Term Loan A facility will amortize in quarterly installments due on the last day of each fiscal quarter, commencing on or about April 3, 2027, in an amount equal to 0.625% of the original aggregate principal amount of such borrowing, with the balance, plus any accrued interest, due and payable on November 4, 2031.

Borrowings in U.S. dollars shall bear interest based on term SOFR or a base rate that is the highest of the Federal Funds Rate plus 0.5%, the prime rate, Term SOFR plus 1.0%, or 1.0%. Borrowings in foreign currencies bear interest based on local reference rates. Initial borrowing margins will be 0.5% for base rate and Canadian prime rate borrowings and 1.5% for all other borrowings through the fiscal quarter ending on or about April 3, 2027. Thereafter, the applicable margin for borrowing will range from 0.25% to 0.75% in the case of base rate and Canadian prime rate loans and 1.25% to 1.75% in the case of all other loans, in each case, based on the most recent total net leverage ratio and may be adjusted quarterly based on the company's most recent net leverage ratio on a rolling four-quarter basis. Additionally, a commitment fee based on the leverage ratio will be charged on the unused portion of the commitments under the revolving credit facility.

Covenants in the Credit Agreement limit the ability of the company and its subsidiaries to: incur indebtedness; grant liens; engage in certain mergers, consolidations, acquisitions and dispositions; make restricted payments; make certain investments; enter into certain sale-leaseback transactions; change its line of business or fiscal year; and enter into certain transactions with affiliates.

The Credit Agreement requires the company to satisfy certain financial covenants including: (i) a maximum secured net leverage ratio of 3.75 to 1.00, which may be adjusted to 4.25 to 1.00 for a four consecutive fiscal quarter period in connection with certain qualified acquisitions and (ii) a minimum consolidated interest coverage ratio of 3.00 to 1.00.