Texas Instruments 2006 Annual Report Download - page 22

TEXAS INSTRUMENTS 2006 ANNUAL REPORT
2020
The following table reflects the components of acquisition-related intangible assets, excluding goodwill, that are subject to
amortization:
DECEMBER 31, 2006 DECEMBER 31, 2005
Amortized Intangible Assets
Gross
Carrying
Amount
Accumulated
Amortization
Gross
Carrying
Amount
Accumulated
Amortization
Developed and core technology .................................. $209 $137 $ 202 $ 156
Customer relationships .......................................... 45 30 32 24
Patents andtrademarks .......................................... 32 4 21
Non-compete agreements ....................................... 6 3 57 53
Other .......................................................... 1 1 21
Total ........................................................... $293 $175 $295 $235
Amortization of acquisition-related intangibles was $59 million, $55 million and $69 million for 2006, 2005 and 2004, primarily
related to developed technology. Fully amortized assets are written off against accumulated amortization.
The following table sets forth the estimated amortization of acquisition-related intangibles for the years ended December 31:
2007 ...................................................................................................... $ 42
2008 ...................................................................................................... 25
2009 ...................................................................................................... 20
2010 ...................................................................................................... 20
2011 ...................................................................................................... 5
Thereafter ................................................................................................. 6
6. Debt and Lines of Credit
DECEMBER 31,
Long-term Debt 2006 2005
8.75% notes due 2007 .............................................................................. $43 $43
6.125% notes due 2006 ............................................................................. —300
Variable-rate bank notes due 2008/2010 ............................................................. —275
Other ............................................................................................ —12
43 630
Less current portion long-term debt ................................................................. 43 301
Total ............................................................................................. $— $329
In 1996, the coupon rates for the notes due 2006 were swapped for LIBOR-based variable rates through 2006, for an effective
interest rate of approximately 3.61% as of December 31, 2005. This swap expired in 2006 at the maturity of the related notes.
In 2001, the coupon rates for the notes due 2007 were swapped for LIBOR-based variable rates through 2007, for an effective
interest rate of approximately 9.10% and 8.27% as of December 31, 2006 and 2005. The effect of these interest rate swaps was
to reduce interest expense by zero, $11 million and $19 million in 2006, 2005 and 2004.
In November 2005, in connection with the repatriation of non-U.S. earnings under provisions of the American Jobs Creation
Act of 2004 (AJCA), our Japan subsidiary entered into a five-year syndicated credit agreement with a consortium of banks
to borrow $275 million at a LIBOR-based variable rate. During the second quarter of 2006, the $275 million was prepaid. The
agreement continues to provide a revolving credit facility for an additional $175 million that would carry a variable rate of
interest, if drawn.
We also maintain lines of credit to support commercial paper borrowings and to provide additional liquidity through short-term
bank loans. In August 2006, we replaced our 364-day $500 million revolving credit facility with a five-year $1 billion facility.
These lines of credit were not used in 2006 or 2005. The new facility would carry a variable rate, if drawn.
At December 31, 2006, both revolving credit facilities remained undrawn and no commercial paper was outstanding.