Debt

3 Months Ended

Mar. 29, 2024

Debt Disclosure [Abstract]

Debt

NOTE 8. DEBT

Debt consisted of the following:

		As of
		First Quarter of			Year End
Instrument	Date of Issuance	2024			2023
(In millions)		Effective interest rate
Senior Notes:
Senior Notes, 4.75%, due December 2024	November 2014	4.95%	$	400.0	$	400.0
Senior Notes, 4.90%, due June 2028	June 2018	5.04%	600.0		600.0
Senior Notes, 6.10%, due March 2033	March 2023	6.13%	800.0		800.0
Credit Facilities:
2022 Revolving Credit Facility, due March 2027	September 2022	6.68%	100.0		150.0
Term Loan, due April 2026	April 2023	6.93%	500.0		500.0
Term Loan, due April 2028	April 2023	7.06%	500.0		500.0
Uncommitted Credit Facilities, floating rate		5.38%	143.4		130.4
Unamortized discount and issuance costs			(13.1)		(13.8)
Total debt			$	3,030.3	$	3,066.6
Less: Short-term debt			543.4		530.4
Long-term debt			$	2,486.9	$	2,536.2

Debt Maturities

At the end of the first quarter of 2024, our debt maturities based on outstanding principal were as follows (in millions):

Year Payable
2024 (Remaining)	$	543.4
2025	—
2026	518.8
2027	143.7
2028	1,037.5
Thereafter	800.0
Total	$	3,043.4

Senior Notes

All of our senior notes are unsecured obligations. Interest on the senior notes is payable semi-annually in June and December of each year, except for the interest on the 2033 senior notes payable in March and September. Additional details are unchanged from the information disclosed in Note 8 “Debt” of the 2023 Form 10-K.

Credit Facilities

2023 Term Loans

In 2023, we entered into two unsecured, variable-rate term loans comprised of a 3-year tranche for $500.0 million and a 5-year tranche for $500.0 million. In the second quarter of 2024, we repaid the term loans in full. See Note 14 “Subsequent Events” of this report for additional information.

2022 Credit Facility

In 2022, we entered into a five-year, unsecured, revolving credit facility in the aggregate principal amount of $1.25 billion. Subject to approval, we may increase the commitments for revolving loans by an aggregate principal amount of up to $500.0 million. The variable interest rate and commitment fees are based on our current long-term, senior unsecured debt ratings, our leverage ratio, and certain specified sustainability targets.

Uncommitted Facilities

At the end of the first quarter of 2024, we had two $75.0 million and one €100.0 million revolving credit facilities, which are uncommitted. Generally, these variable-rate, uncommitted facilities may be redeemed upon demand. Borrowings under uncommitted facilities are classified as short-term debt in the Condensed Consolidated Balance Sheet.

Covenants

The 2023 term loans and 2022 credit facility contain customary covenants, including, among other requirements, limitations that restrict our and our subsidiaries’ ability to create liens and enter into sale and leaseback transactions, and restrictions on the ability of the subsidiaries to incur indebtedness. The facilities contain financial covenants that require the maintenance of maximum leverage and minimum interest coverage ratios, as well as the timely delivery of quarterly financial reports and compliance certificates. At the end of the first quarter of 2024, we were in compliance with our covenants for each of our debt agreements.