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NOTE 11: Debt and Other Obligations
Total Debt
The Company’s total debt as of December 28, 2013 and December 29, 2012 consisted of:
December 28,
2013
December 29,
2012
(In millions)
6.00% Notes, net of discount ................................... $ 517 $ 555
8.125% Notes, net of discount .................................. 470 464
7.75% Notes ................................................ 500 500
7.50% Notes ................................................ 500 500
Secured Revolving Line of Credit ............................... 55 —
Capital lease obligations ...................................... 16 23
Total debt .................................................. 2,058 2,042
Less: current portion ......................................... 60 5
Total debt, less current portion ................................. $1,998 $2,037
6.00% Convertible Senior Notes due 2015
On April 27, 2007, the Company issued $2.2 billion aggregate principal amount of the 6.00% Notes. The
6.00% Notes are general unsecured senior obligations. Interest is payable on May 1 and November 1 of each year
beginning November 1, 2007 until the maturity date of May 1, 2015. The terms of the 6.00% Notes are governed
by an Indenture (the 6.00% Indenture), dated April 27, 2007, between the Company and Wells Fargo Bank, N.A.,
as trustee.
In 2013, the Company repurchased $50 million in principal amount of the 6.00% Notes in open market
transactions for $53 million. For the repurchase of the 6.00% Notes during 2013, the Company allocated $3
million of the $53 million aggregate cash payment to the equity component and reduced the principal amount of
the debt by $50 million. The Company did not repurchase any of the 6.00% Notes in open market transactions in
2012. Prior to 2012, the Company repurchased $1.6 billion in principal amount of the 6.00% Notes for $1.4
billion. As of December 28, 2013, the outstanding aggregate principal amount of the 6.00% Notes was $530
million and the remaining carrying value was approximately $517 million, net of debt discount of $13 million.
Subsequent to December 28, 2013, the Company repurchased an additional $64 million in principal amount of
the 6.00% Notes.
The proceeds from the issuance of the 6.00% Notes were allocated between a liability (issued at a discount)
and equity in a manner that reflects interest expense at the market interest rate for similar nonconvertible debt as
of the original issuance date of the 6.00% Notes. The debt discount is being accreted from issuance through April
2015, the period the 6.00% Notes are expected to be outstanding, with the accretion recorded as additional non-
cash interest expense. The equity component is included in the paid-in-capital portion of stockholders’ equity on
the Company’s consolidated balance sheet. The initial value of the equity component ($259 million), which
reflects the equity conversion feature of the 6.00% Notes, is equal to the initial debt discount.
Information related to equity and debt components:
December 28,
2013
December 29,
2012
(In millions)
Carrying amount of the equity component ................ $159 $162
Principal amount of the 6.00% Notes .................... 530 580
Unamortized discount(1) ............................... (13) (25)
Net carrying amount ................................. $517 $555
(1) As of December 28, 2013, the remaining period over which the unamortized discount will be amortized is
16 months.
90