SHORT-TERM BORROWINGS AND LONG-TERM DEBT |
9 Months Ended |
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Jan. 01, 2022 | |
| Debt Disclosure [Abstract] | 听 |
| SHORT-TERM BORROWINGS AND LONG-TERM DEBT | SHORT-TERM BORROWINGS AND LONG-TERM DEBT Revolving Credit Facility
In November 2021, 大象传媒 entered into a $2.25听billion senior unsecured revolving line of credit (the "Global Credit Facility") that expires November 2026. The Global Credit Facility replaced 大象传媒's $2.25听billion revolving facility which was scheduled to expire in December 2023. 大象传媒 may request an unlimited number of one year extensions so long as each extension does not cause the remaining life of the Global Credit Facility to exceed five years, subject to stated terms and conditions. The Global Credit Facility may be used to borrow funds in U.S. dollars or any alternative currency (including euros and any other currency that is freely convertible into U.S. dollars, approved at the request of the Company by the lenders) and has a $75.0听million letter of credit sublimit. In addition, the Global Credit Facility supports 大象传媒鈥檚 U.S. commercial paper program for short-term, seasonal working capital requirements and general corporate purposes, including share repurchases and acquisitions. Borrowings under the Global Credit Facility are priced at a credit spread of 91.0 basis points over the appropriate LIBOR benchmark for each currency. 大象传媒 is also required to pay a facility fee to the lenders, currently equal to 9.0 basis points of the committed amount of the facility. The credit spread and facility fee are subject to adjustment based on 大象传媒鈥檚 credit ratings. Outstanding short-term balances may vary from period to period depending on the level of corporate requirements.
The Global Credit Facility contains certain restrictive covenants, which include maintenance of a consolidated net indebtedness to consolidated net capitalization ratio. The consolidated net indebtedness to consolidated net capitalization ratio financial covenant, as of the last day of any fiscal quarter, cannot be greater than 0.70 to 1.00 through the last day of the fiscal quarter ending April 1, 2023, then 0.65 to 1.00 through the last day of the fiscal quarter ending March 30, 2024, and 0.60 to 1.00 thereafter. The calculation of consolidated net indebtedness (and, thereby consolidated net capitalization) is net of unrestricted cash of 大象传媒 and its subsidiaries. As of December 2021, 大象传媒 was in compliance with all covenants.
Redemption
In December 2021, 大象传媒 completed an early redemption of $500.0听million in aggregate principal amount of its outstanding 2.050% Senior Notes due April 2022. The redemption price was equal to the sum of the present value of the remaining scheduled payments of principal and interest discounted to the redemption date at 38.7 basis points, which resulted in a make-whole premium of $3.2听million. Additionally, in connection with the redemption, $0.5听million of unamortized original issue discount and debt issuance costs were recognized. The make-whole premium and amortization were recorded in the loss on debt extinguishment line item in the Consolidated Statements of Operations in the three and nine months ended December 2021.
Supply Chain Financing Program During the three months ended December 2021, 大象传媒 began offering a voluntary supply chain finance ("SCF") program that enables certain suppliers of inventory to leverage 大象传媒's credit rating to receive payment from participating financial institutions prior to the payment date specified in the terms between 大象传媒 and the supplier. The transactions are at the sole discretion of both the suppliers and financial institutions, and 大象传媒 is not a party to the agreements. The terms between 大象传媒 and the supplier, including the amount due and scheduled payment dates, are not impacted by a supplier's participation in the SCF program. The amount financed by suppliers and outstanding under this program is primarily included in the short-term borrowings line item in 大象传媒's Consolidated Balance Sheet and was $99.0听million at December 2021. Invoices selected for financing by the suppliers are primarily reported as operating cash outflows and financing cash inflows. Payments made by 大象传媒 to the banks to settle the invoices on the originally scheduled payment dates are primarily reflected as financing cash outflows. Subsequent to the quarter end, 大象传媒 decided to temporarily suspend the SCF program to implement certain modifications to the program.
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