Debt

12 Months Ended

Jul. 03, 2021

Debt

Debt

8. Debt

Short-term debt consists of the following (in thousands):

	July 3,		June 27,		July 3,		June 27,
	2021		2020		2021		2020
	Interest Rate				Carrying Balance
Accounts receivable securitization program and other	1.24	%	5.69	%	$	23,078	$	51
Short-term debt					$	23,078	$	51

Bank credit facilities and other consist of various committed and uncommitted lines of credit and other forms of bank debt with financial institutions, which are utilized primarily to support the Company’s working capital requirements, including its foreign operations.

In July 2020, the Company amended, and extended for one year, its trade accounts receivable securitization program (the “Securitization Program”) in the United States with a group of financial institutions. The Securitization Program allows the Company to transfer, on an ongoing revolving basis, an undivided interest in a designated pool of trade accounts receivable, to provide security or collateral for borrowings up to a maximum of $450.0 million. The Securitization Program does not qualify for off-balance sheet accounting treatment and any borrowings under the Securitization Program are recorded as debt in the consolidated balance sheets. Under the Securitization Program, the Company legally sells and isolates certain U.S. trade accounts receivable into a wholly owned and consolidated bankruptcy remote special purpose entity. Such receivables, which are recorded within “Receivables” in the consolidated balance sheets, totaled $717.4 million and $703.8 million at July 3, 2021, and June 27, 2020, respectively. The Securitization Program contains certain covenants relating to the quality of the receivables sold. There was $22.9 million and no borrowings outstanding under the Securitization Program as of July 3, 2021, and as of June 27, 2020, respectively. Interest on borrowings is calculated using a one-month LIBOR rate plus a spread of 1.05%. The facility fee on the unused balance of the facility is up to 0.40%.

In July 2021, the Company extended the maturity of the Securitization Program from July 30, 2021 to August 31, 2021.

During the fourth quarter of fiscal 2021, the Company redeemed the $300.0 million of outstanding 3.75% Notes due in December 2021 at a make-whole redemption price of $305.0 million and the Company issued $300.0 million of 3.00% Notes due in May 2031.

Long-term debt consists of the following (in thousands):

	July 3,		June 27,		July 3,		June 27,
	2021		2020		2021		2020
	Interest Rate				Carrying Balance
Revolving credit facilities:
Credit Facility (due June 2023)	—		1.28	%	$	—	$	230,000
Public notes due:
December 2021	—		3.75	%		—		300,000
December 2022	4.88	%	4.88	%		350,000		350,000
April 2026	4.63	%	4.63	%		550,000		550,000
May 2031	3.00	%	—			300,000
Other long-term debt	1.22	%	1.19	%		1,185		1,491
Long-term debt before discount and debt issuance costs						1,201,185		1,431,491
Discount and debt issuance costs – unamortized						(9,856)		(6,700)
Long-term debt					$	1,191,329	$	1,424,791

The Company has a five-year $1.25 billion Credit Facility with a syndicate of banks, which expires in June 2023. It consists of revolving credit facilities and up to $200.0 million in letters of credit and up to $300.0 million of loans in certain approved currencies. Subject to certain conditions, the Credit Facility may be increased up to $1.50 billion. Under the Credit Facility, the Company may select from various interest rate options, currencies, and maturities. The Credit Facility contains certain covenants, including various limitations on debt incurrence, share repurchases, dividends, investments, and capital expenditures. The Credit Facility also includes financial covenants requiring the Company to maintain minimum interest coverage and leverage ratios, which the Company was in compliance with as of July 3, 2021. At July 3, 2021, and June 27, 2020, there were $1.3 million and $1.6 million, respectively, in letters of credit issued under the Credit Facility.

Aggregate debt maturities for the next five fiscal years and thereafter are as follows (in thousands):

2022	$	23,078
2023		350,409
2024		377
2025		183
2026		550,216
Thereafter		300,000
Subtotal		1,224,263
Discount and debt issuance costs – unamortized		(9,856)
Total debt	$	1,214,407

At July 3, 2021, the carrying value and fair value of the Company’s total debt was $1.21 billion and $1.30 billion, respectively. At June 27, 2020, the carrying value and fair value of the Company’s total debt was $1.42 billion and $1.52 billion, respectively. Fair value for the public notes was estimated based upon quoted market prices and for other forms

of debt fair value approximates carrying value due to the market based variable nature of the interest rates on those debt facilities.