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80
Debt Restructure
On February 12, 2013, we repurchased $464 million of aggregate principal amount of our 2014 Notes for $477 million in
privately negotiated transactions. The liability and equity components of the 2014 Notes were stated separately pursuant to the
accounting standards for convertible debt instruments that may be fully or partially settled in cash upon conversion.
Accordingly, the repurchase resulted in the derecognition of $431 million in debt for the principal amount (net of $33 million of
debt discount) and $15 million in additional capital for the equity component. We recognized a charge of $31 million
associated with the early repurchase, based on the estimated $462 million fair value of the debt component and the $431
million carrying value (net of unamortized discount) of the notes repurchased. The fair value of the debt component was
estimated using an interest rate for non-convertible debt, with terms similar to the debt component of the 2014 Notes on a
stand-alone basis issued by entities with credit ratings similar to ours at the repurchase date (Level 2 fair value measurements).
In the first quarter of 2011, in connection with a series of debt restructure transactions with certain holders of our
convertible notes, we recognized a loss of $111 million as follows:
• $15 million on the exchange of $175 million in aggregate principal amount of our 2014 Notes for $175 million in
aggregate principal amount of new 2027 Notes;
• $17 million (including transaction fees) on the repurchase of $176 million in aggregate principal amount of our 2014
Notes for $171 million in cash; and
• $79 million (including transaction fees) on the repurchase of $91 million in aggregate principal amount of our 2013
Notes for $166 million in cash.
Maturities of Notes Payable and Future Minimum Lease Payments
As of August 29, 2013, maturities of notes payable, including the Elpida Creditor Installment Payments, and future
minimum lease payments under capital lease obligations were as follows:
As of August 29, 2013 Notes
Payable Capital Lease
Obligations
2014 $ 1,203 $ 449
2015 367 349
2016 356 307
2017 500 85
2018 869 41
2019 and thereafter 2,263 135
Discounts and interest, respectively (773)(114)
$ 4,785 $ 1,252