v3.26.3
Debt
 9 Months Ended
Sep. 26, 2026
Debt [Abstract]  
Debt
Note 7 – Debt
Bank Credit Lines
Bank credit lines consisted of the following:
September 26,
December 27,
2026
2025
Revolving credit agreement
$
200
$
100
Other short-term bank credit lines
800
664
Total
$
1,000
$
764
Revolving Credit Agreement
On
August 20, 2021
, we entered into a $
1.0
billion revolving credit agreement (the “Revolving Credit
Agreement”).
On
September 21, 2026
, we amended and restated the Revolving Credit Agreement
to, among other
things, (i) increase the aggregate revolving credit commitments from
$
1.0
billion to $
1.25
billion, (ii) extend the
maturity date to
September 19, 2031
, and (iii) modify certain financial definitions and covenants.
The interest rate
on this revolving credit facility is based on
Term Secured Overnight Financing Rate
(“
Term SOFR
”) plus a spread
based on our leverage ratio at the end of each financial reporting quarter.
As of September 26, 2026 the interest
rate on this revolving credit facility was
3.89
% plus
1.08
%, for a combined rate of
4.97
%.
As of December 27,
2025, the interest rate on this revolving credit facility was
3.78
% plus
1.08
%, for a combined rate of
4.86
%.
The Revolving Credit Agreement requires, among other things, that we
maintain certain maximum leverage ratios.
Additionally, the Revolving Credit Agreement contains customary representations, warranties and affirmative
covenants as well as customary negative covenants, subject to negotiated
exceptions, on liens, indebtedness,
significant corporate changes (including mergers), dispositions and certain restrictive
agreements.
As of September
26, 2026 and December 27, 2025, we had $
200
million and $
100
million in borrowings, respectively, under this
revolving credit facility.
During the nine months ended September 26, 2026, the
average outstanding balance under
the Revolving Credit Agreement was approximately $
444
million.
As of September 26, 2026 and December 27,
2025, there were $
11
million and $
10
million of letters of credit, respectively, provided to third parties under the
Revolving Credit Agreement.
Other Short-Term Bank Credit
Lines
As of September 26, 2026 and December 27, 2025, we had various other
short-term bank credit lines available, in
various currencies, with a maximum borrowing capacity of $
887
million and $
787
million, respectively.
As of
September 26, 2026 and December 27, 2025, $
800
million and $
664
million, respectively, were outstanding.
During the nine months ended September 26, 2026, the average outstanding
balance under our various other short-
term bank credit lines was approximately $
631
million.
As of September 26, 2026 and December 27, 2025,
borrowings under other short-term bank credit lines had weighted average
interest rates of
4.66
% and
4.68
%,
respectively.
Long-term debt
Long-term debt consisted of the following:
September 26,
December 27,
2026
2025
Private placement facilities
$
1,199
$
1,149
Term loan
740
749
U.S. trade accounts receivable securitization
525
390
Various
collateralized and uncollateralized loans payable with interest,
in varying installments through 2031 at interest rates
from
0.00
% to
6.50
% at September 26, 2026 and
from
0.00
% to
6.75
% at December 27, 2025
54
48
Finance lease obligations
6
7
Total
2,524
2,343
Less current maturities
(142)
(33)
Total long-term debt
$
2,382
$
2,310
Private Placement Facilities
Our private placement facilities provided by
four
insurance companies have a total facility amount of $
1.5
billion,
and are available on an uncommitted basis at fixed rate economic terms
to be agreed upon at the time of issuance,
from time to time through
December 19, 2028
.
The facilities allow us to issue senior promissory notes to the
lenders at a fixed rate based on an agreed upon spread over applicable treasury
notes at the time of issuance.
The
term of each possible issuance will be selected by us and can range from
five
to
15 years
(with an average life no
longer than
12 years
).
The proceeds of any issuances under the facilities will be used for
general corporate
purposes, including working capital and capital expenditures, to refinance
existing indebtedness, and/or to fund
potential acquisitions.
On December 19, 2025, we amended and restated our private placement
facilities to, among
other things, (i) extend the scheduled facility termination dates to
December 19, 2028
and (ii) modify certain
financial definitions and covenants.
The agreements provide, among other things, that we
maintain certain
maximum leverage ratios, and contain restrictions relating to subsidiary
indebtedness, liens, affiliate transactions,
disposal of assets and certain changes in ownership.
These facilities contain make-whole provisions in the event
that we pay off the facilities prior to the applicable due dates.
The components of our private placement facility borrowings as of
September 26, 2026, which have a weighted
average interest rate of
3.99
%, are presented in the following table:
Amount of
Date of
Borrowing
Borrowing
Borrowing
Outstanding
Rate
Due Date
June 16, 2017
$
100
3.42
%
June 16, 2027
September 15, 2017
100
3.52
September 15, 2029
January 2, 2018
100
3.32
January 2, 2028
September 2, 2020
100
2.35
September 2, 2030
June 2, 2021
100
2.48
June 2, 2031
June 2, 2021
100
2.58
June 2, 2033
May 4, 2023
75
4.79
May 4, 2028
May 4, 2023
75
4.84
May 4, 2030
May 4, 2023
75
4.96
May 4, 2033
May 4, 2023
150
4.94
May 4, 2033
December 15, 2025
100
5.23
December 15, 2032
December 15, 2025
75
5.28
December 15, 2032
February 24, 2026
50
5.40
February 24, 2034
Less: Deferred debt issuance costs
(1)
Total
$
1,199
The components of our private placement facility borrowings as of December
27, 2025, which have a weighted
average interest rate of
3.93
%, are presented in the following table:
Amount of
Date of
Borrowing
Borrowing
Borrowing
Outstanding
Rate
Due Date
June 16, 2017
$
100
3.42
%
June 16, 2027
September 15, 2017
100
3.52
September 15, 2029
January 2, 2018
100
3.32
January 2, 2028
September 2, 2020
100
2.35
September 2, 2030
June 2, 2021
100
2.48
June 2, 2031
June 2, 2021
100
2.58
June 2, 2033
May 4, 2023
75
4.79
May 4, 2028
May 4, 2023
75
4.84
May 4, 2030
May 4, 2023
75
4.96
May 4, 2033
May 4, 2023
150
4.94
May 4, 2033
December 15, 2025
100
5.23
December 15, 2032
December 15, 2025
75
5.28
December 15, 2032
Less: Deferred debt issuance costs
(1)
Total
$
1,149
Term Loan
On
July 11, 2023
, we entered into a
three-year
$
750
million term loan credit agreement (the “Term Credit
Agreement”), which was originally scheduled to mature on
July 11, 2026
.
On
June 6, 2025
, this agreement was
amended and restated to, among other things, (i) extend the maturity date
to
June 6, 2030
, and (ii) modify certain
financial definitions and covenants.
On
September 21, 2026
, this agreement was amended to modify certain
financial definitions and covenants.
The interest rate on this term loan is based on the
Term SOFR
plus a spread
based on our leverage ratio at the end of each financial reporting quarter.
Beginning in June 2026 and continuing
through June 2027, we are required to make quarterly payments of $
5
million.
In September 2027, the quarterly
payment amount increases to $
9
million, continuing through June 2030 with the remaining balance due June
6,
2030.
As of September 26, 2026, the borrowings outstanding under this
term loan were $
740
million.
At
September 26, 2026, the interest rate under the Term Credit Agreement was
3.77
% plus
1.25
%, for a combined rate
of
5.02
%.
As of December 27, 2025, the borrowings outstanding under this
term loan were $
749
million.
At
December 27, 2025, the interest rate under the Term Credit Agreement was
3.76
% plus
1.25
%, for a combined rate
of
5.01
%.
The Term Credit Agreement requires, among other things, that we maintain certain maximum leverage
ratios.
Additionally, the Term
Credit Agreement contains customary representations, warranties
and affirmative
covenants as well as customary negative covenants, subject to negotiated
exceptions, on liens, indebtedness,
significant corporate changes (including mergers), dispositions and certain restrictive
agreements.
U.S. Trade Accounts Receivable Securitization
We have a facility agreement based on our U.S. trade accounts receivable that is structured as an asset-backed
securitization program with pricing committed for up to
three years
.
On
September 24, 2026
, we amended the
facility to increase the purchase limit from $
450
million to $
525
million, with the addition of a third bank as an
agent, and extended the expiration date to
September 24, 2029
.
As of September 26, 2026 and December 27, 2025, the borrowings outstanding
under this securitization facility
were $
525
million and $
390
million, respectively.
At September 26, 2026, the interest rate on borrowings under
this facility was based on the
asset-backed commercial paper rate
of
4.03
% plus
0.77
%, for a combined rate of
4.80
%.
At December 27, 2025, the interest rate on borrowings under
this facility was based on the
asset-
backed commercial paper rate
of
4.06
% plus
0.75
%, for a combined rate of
4.81
%.
If our accounts receivable collection pattern changes due to customers
either paying late or not making payments,
our ability to borrow under this facility may be reduced.
We are required to pay a commitment fee of
30
to
35
basis
points depending upon program utilization.