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2011.Oureffectivetaxrateispartiallyoffsetbystateincometaxes,non-deductiblestockcompensationandaccrualsonuncertaintaxpositions.
Liquidity and Capital Resources
Thefollowingsectionexplainshowwehavegeneratedandusedourcashhistorically,describesourcurrentcapitalresourcesanddiscussesourfuture
financialcommitments.
Cash Requirements
ThefollowingtableaggregatesourmaterialcontractualobligationsandminimumcommercialcommitmentsasofDecember31,2015:
By Period
Total
Less than
1 year 1 to 3 years 3 to 5 years
More than
5 years
(in millions)
2015CreditFacilityandChineseCreditFacilities(1) $ 201$ 1  $ —$ 200  $ —
Expectedinterestpaymentson2015CreditFacility(1) 15 3   7 5   —
Propertyleases,netofsubleaseincome(2) 250 22   45 44   139
Total(3) $ 466$ 26  $ 52$ 249  $ 139
(1) Theamountsincludedasexpectedinterestpaymentsonthe2015CreditFacilityinthistablearebasedonthecurrenteffectiveinterestrateasof
December31,2015,but,couldchangesignificantlyinthefuture.Amountsassumethatourexistingdebtisrepaidatmaturityanddonotassumeadditional
borrowingsorrefinancingofexistingdebt.See“Note8—Debt ”inthenotestotheconsolidatedfinancialstatementsinItem8foradditionalinformationon
our2015CreditFacilityandChineseCreditFacilities.
(2) Estimatedfutureminimumrentalpaymentsunderoperatingleaseswithnon-cancelableleaseterms,includingourcorporateheadquartersleaseinNeedham,
MA.Seediscussionunder“OfficeLeaseCommitments”below.
(3) Excludedfromthetablewas$87millionofunrecognizedtaxbenefits,includinginterest,thatwehaverecordedinotherlong-termliabilitiesforwhichwe
cannotmakeareasonablyreliableestimateoftheamountandperiodofpayment.Wedonotanticipateanymaterialchangesinthenextyear.
2015 Credit Facility
OnJune26,2015,weenteredintoafiveyearcreditagreementwithJPMorganChaseBank,N.A.,asAdministrativeAgent;J.P.MorganEuropeLimited,as
LondonAgent;MorganStanleyBank,N.A.;BankofAmerica,N.A.;BNPParibas;SunTrustBank;WellsFargoBank,NationalAssociation;RoyalBankof
Canada;BarclaysBankPLC;U.S.BankNationalAssociation;Citibank,N.A.;TheBankofTokyo-MitsubishiUFJ,Ltd.;GoldmanSachsBankUSA;andDeutsche
BankAGNewYorkBranch(the“2015CreditFacility”).
The2015CreditFacility,amongotherthings,providesfor(i)a$1billionunsecuredrevolvingcreditfacility,(ii)aninterestrateonborrowingsand
commitmentfeesbasedontheCompany’sanditssubsidiaries’consolidatedleverageratioand(iii)uncommittedincrementalrevolvingloanandtermloan
facilities,subjecttocompliancewithaleveragecovenantandotherconditions.
Weimmediatelyborrowed$290millionfromthisrevolvingcreditfacility,whichwasusedtorepayalloutstandingborrowingspursuanttothe2011Credit
Facility(asdescribedin“Note8—Debt ”inthenotestotheconsolidatedfinancialstatementsinItem8)andisrecordedinlongtermliabilitiesonourconsolidated
balancesheetasofDecember31,2015.Thereisnospecificrepaymentdatepriortothefive-yearmaturitydateforborrowingsunderthisrevolvingcreditfacility,
however,theCompanymaydeterminetomakepaymentsonthisdebt,basedoncurrentinterestratesandliquidityrequirements,atvarioustimesduringthefive-
yearperiod.DuringtheyearendedDecember31,2015,theCompanyhasrepaid$90millionofouroutstandingborrowingsonthe2015CreditFacility.Basedon
theCompany’scurrentleverageratio,ourborrowingsbearinterestatLIBORplus125basispoints,ortheEurocurrencySpread.TheCompanyiscurrently
borrowingunderaone-monthinterestperiodofapproximately1.7%perannum,usingaone-monthinterestperiodEurocurrencySpread,whichwillreset
periodically.InterestwillbepayableonamonthlybasiswhiletheCompanyisborrowingundertheone-monthinterestrateperiod.
Wearealsorequiredtopayaquarterlycommitmentfee,onthedailyunusedportionoftherevolvingcreditfacilityforeachfiscalquarterandfeesin
connectionwiththeissuanceoflettersofcredit.Unusedrevolvercapacityiscurrentlysubjecttoacommitmentfeeof20.0basispoints,giventheCompany’s
currentleverageratio.The2015CreditFacilityincludes$15millionof
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