Texas Instruments 2015 Annual Report Download - page 62

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56
FORM 10-K
In August 2012, we issued an aggregate principal amount of $1.5 billion of fixed -rate long -term debt, with $750 million due in 2015
and $750 million due in 2019. The proceeds of the offering were $1.492 billion, net of the original issuance discount. We also incurred
$7 million of issuance and other related costs that are being amortized to Interest and debt expense over the term of the debt.
Long-term debt outstanding as of December 31, 2014 and 2013 is as follows:
December 31,
2014 2013
Notes due 2014 at 1.375% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ — $ 1,000
Notes due 2015 at 3.95% (assumed with National acquisition) . . . . . . . . . . . . . . . . . . . . . . . . 250 250
Notes due 2015 at 0.45% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 750 750
Notes due 2016 at 2.375% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000 1,000
Notes due 2017 at 6.60% (assumed with National acquisition) . . . . . . . . . . . . . . . . . . . . . . . . 375 375
Notes due 2017 at 0.875% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250 —
Notes due 2018 at 1.00% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500 500
Notes due 2019 at 1.65% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 750 750
Notes due 2021 at 2.75% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250 —
Notes due 2023 at 2.25% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500 500
4,625 5,125
Net unamortized premium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 33
Current portion of long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,001) (1,000)
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,641 $ 4,158
Interest and debt expense was $94 million in 2014, $95 million in 2013 and $85 million in 2012. This was net of the amortization of the
debt premium and other debt issuance costs. Cash payments for interest on long-term debt were $102 million in both 2014 and 2013
and $97 million in 2012. Capitalized interest was not material.
Commit ments and contingencies
Operating leases
We conduct certain operations in leased facilities and also lease a portion of our data processing and other equipment. In addition,
certain long-term supply agreements to purchase industrial gases are accounted for as operating leases. Lease agreements frequently
include purchase and renewal provisions and require us to pay taxes, insurance and maintenance costs. Rental and lease expense
incurred was $113 million, $120 million and $124 million in 2014, 2013 and 2012, respectively.
Capitalized software licenses
We have licenses for certain internal-use electronic design automation software that we account for as capital leases. The related
liabilities are apportioned between Accounts payable and Deferred credits and other liabilities on our Consolidated Balance Sheets,
depending on the contractual timing of payments.
Purchase commitments
Some of our purchase commitments entered in the ordinary course of business provide for minimum payments.
As of December 31, 2014, we had committed to make the following minimum payments under our non-cancellable operating leases,
capitalized software licenses and purchase commitments:
Operating
Leases
Capitalized
Software
Licenses
Purchase
Commitments
2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 87 $ 39 $ 96
2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 27 52
2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 — 35
2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 — 14
2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 — 10
Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 — 2
13.