Crucial 2011 Annual Report Download - page 39

On July 26, 2011 , we issued $ 345 million of 1.5% Convertible Senior Notes due August 1, 2031 (the "2031A Notes") and $ 345 million of
1.875% Convertible Senior Notes due August 1, 2031
(the "2031B Notes" and together with the 2031A Notes the "2031 Notes") at face value.
Issuance costs for the 2031 Notes totaled $18 million.
On July 26, 2011, concurrent with the offering of the 2031 Notes, we entered into capped call transactions (the "2011 Capped Calls") that
have an initial strike price of approximately $9.50 per share, subject to certain adjustments, which was set to equal initial conversion price of the
2031 Notes.
On July 26, 2011, we paid $150 million to repurchase 19.7 million shares of common stock at $7.60 per share.
In the third quarter of 2011, we prepaid the remaining $250 million outstanding under our TECH subsidiary's credit facility.
On November 3, 2010, we completed the following series of debt restructure transactions in connection with separate privately negotiated
agreements entered into on October 28, 2010 with certain holders of our convertible notes:
(See "Item 1. Financial Statements - Notes to Consolidated Financial Statements - Debt" and "Item 1. Financial Statements - Notes to
Consolidated Financial Statements - Shareholders' Equity" notes.)
Joint ventures
In 2011, IM Flash distributed $225 million to Intel. Timing of future distributions to Intel is subject to market conditions and availability of
cash. In 2011, IM Flash began installing tools at its new 300mm wafer fabrication facility in Singapore. We made contributions to IM Flash of
$1,580 million in 2011 and $103 million in September 2011, subsequent to 2011. Intel did not make any contributions to IM Flash in 2011 but
contributed $131 million in September 2011. We expect to make additional significant contributions to IM Flash in future periods in connection
with tool installations and the further ramp of production at the Singapore facility. The level of our future capital contributions to IM Flash will
depend on market conditions and the extent to which Intel participates with us in future IM Flash capital calls.
In the second quarter of 2011, we acquired HP's and Canon's interests in our TECH subsidiary for an aggregate of $159 million and we
became a 100% owner of TECH as a result of these transactions.
Contractual Obligations
The following table summarizes our significant contractual obligations as of September 1, 2011:
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• Repurchased $176 million in aggregate principal amount of our 1.875% Convertible Senior Notes due 2014 (the "2014 Notes") for $171
million in cash.
• Repurchased $91 million in aggregate principal amount of our 4.25% Convertible Senior Notes due 2013 for $166 million in cash.
• Exchanged $175 million in aggregate principal amount of our 2014 Notes for $175 million in aggregate principal amount of the 1.875%
Convertible Senior Notes due 2027 (the"2027 Notes"). Holders of the 2027 Notes have an option to require us to purchase the 2027
Notes on June 1, 2017, and in certain other circumstances, at a price equal to 100 percent of the principal amount of the 2027 Notes plus
accrued and unpaid interest.
Total
Less than
1 year
1-3 years 3-5 years
More than
5 years
Notes payable
(1)
$
2,136
$
39
$
1,163
$
30
$
904
Capital lease obligations
(1)
497
151
158
118
70
Operating leases
116
32
42
17
25
Purchase obligations
1,781
1,277
486
9
9
Other long-term liabilities
559
—
282
152
125
Total
$
5,089
$
1,499
$
2,131
$
326
$
1,133
(1)
Includes interest