Performance Food pany(US:PFGC)2025-08-13 20:16Indebtedness and Financial Obligations - As of June 28, 2025, the company had $6,990.6 million in total indebtedness, including finance lease obligations[124]. - The company has $2,473.6 million available under the ABL Facility after accounting for $171.4 million in outstanding letters of credit and $106.0 million in lenders' reserves[124]. - A substantial portion of the company's indebtedness is floating rate debt, which increases debt service obligations as interest rates rise, negatively impacting net income and cash flows[126]. - The company may incur significant additional amounts of debt in the future, which could exacerbate existing risks associated with its current level of indebtedness[129]. - The agreements governing the company's outstanding indebtedness contain covenants that limit operational flexibility and the ability to engage in strategic transactions[130]. Interest Rate and Fuel Price Risk - The company has two interest rate swaps with a combined notional value of $150.0 million designated as cash flow hedges against interest rate risk[245]. - A hypothetical 100 bps increase in SOFR on the company's variable-rate debt would lead to an increase of approximately $22.1 million in annual interest expense[248]. - The company has collars in place for approximately 15% of the gallons expected to be used over the next twelve months to manage fuel price risk[250]. - A hypothetical 10% increase in diesel prices would result in a potential increase of approximately $26.3 million in fuel costs included in operating expenses[251]. Acquisition Integration Challenges - The integration of the Cheney Brothers Acquisition may face challenges that could materially affect the company's financial position and the realization of anticipated benefits[136].