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NOTE 10: Debt and Other Obligations
Total Debt
The Company’s total debt as of December 27, 2014 and December 28, 2013 consisted of:
December 27,
2014
December 28,
2013
(In millions)
6.00% Notes, net of discount ................................... $ 42 $ 517
8.125% Notes, net of discount .................................. — 470
6.75% Notes ................................................ 600 —
6.75% Notes, interest rate swap ................................. 3 —
7.75% Notes ................................................ 450 500
7.50% Notes ................................................ 475 500
7.00% Notes ................................................ 500 —
Secured Revolving Line of Credit ............................... 130 55
Capital lease obligations ...................................... 12 16
Total debt .................................................. 2,212 2,058
Less: current portion ......................................... 177 60
Total debt, less current portion ................................. $ 2,035 $ 1,998
6.00% Convertible Senior Notes due 2015
On April 27, 2007, the Company issued $2.2 billion aggregate principal amount of the 6.00% Convertible
Senior Notes (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 2014, the Company repurchased $64 million in aggregate principal amount of its 6.00% Notes in open
market transactions for $69 million, which included payment of accrued and unpaid interest of $1 million. Also,
during 2014, the Company repurchased a portion of the 6.00% Notes through a partial tender offer. The
Company repurchased $423 million aggregate principal amount of the 6.00% Notes for $460 million in cash,
which included payment of accrued and unpaid interest of $10 million. The Company incurred a total loss of $10
million in connection with the foregoing repurchases of the 6.00% Notes.
In 2013, the Company repurchased $50 million in aggregate principal amount of its 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. Prior to 2013, the Company repurchased $1.6 billion in principal amount of the 6.00%
Notes for $1.4 billion.
As of December 27, 2014, the outstanding aggregate principal amount and remaining carrying value of the
6.00% Notes were $42 million. The remaining $42 million of aggregate principal amount of 6.00% Notes has
been reclassified as short-term debt on the consolidated balance sheet as of December 27, 2014.
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 accrued 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.
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