Crucial 2013 Annual Report Download - page 49

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Pursuant to the Sponsor Agreement we agreed, subject to certain conditions, to provide certain support to Elpida with
respect to obtaining financing for working capital purposes and capital expenditures. Under the Sponsor Agreement, we
agreed, subject to certain conditions, to use reasonable best efforts to assist the Elpida Companies in financing up to 64 billion
yen (or the equivalent of approximately $655 million) of eligible capital expenditures incurred through June 30, 2014, which
may include us providing payment guarantees of third party financing under certain circumstances or direct financial support
from Micron Technology, Inc. or one of its subsidiaries.
As of August 29, 2013, we have provided payment guarantees related to financing of capital expenditures with an
outstanding borrowing of 4 billion yen (or the equivalent of approximately $41 million), through December, 2014. We have
entered into an omnibus reimbursement agreement with Elpida in connection with our financial support obligations under the
Sponsor Agreement, whereby Elpida and certain of its subsidiaries have agreed, among other things, to reimburse us for any
amounts that we are required to pay under or in connection with the payment guarantees. These obligations under the omnibus
reimbursement agreement are collateralized by approximately 93% of the Rexchip shares held by Elpida and one of its
subsidiaries. In the event we are required to make any payments to Elpida's lenders under the guarantees, our rights will be
subrogated to those of the lenders, including any rights to exercise remedies with respect to collateral securing the underlying
loans.
(See "Item 8. Financial Statements and Supplementary Data – Notes to Consolidated Financial Statements – Acquisition of
Elpida Memory, Inc.")
Contractual Obligations
Payments Due by Period
As of August 29, 2013 Total Less than
1 year 1-3 years 3-5 years More than 5 years
Notes payable (1) $ 5,951 $ 1,285 $ 852 $ 1,473 $ 2,341
Capital lease obligations (1) 1,366 449 656 126 135
Operating leases 106 22 26 21 37
Purchase obligations 1,426 1,273 129 13 11
Other long-term liabilities (2) (3) 461 155 157 79 70
Total $ 9,310 $ 3,184 $ 1,820 $ 1,712 $ 2,594
(1) Amounts includes Elpida Creditor Installment Payments, convertible notes and other notes and reflects principal and
interest cash payments over the life of the obligations, including anticipated interest payments that are not recorded on our
consolidated balance sheet. Any future redemption or conversion of convertible debt could impact our cash payments.
(2) Amounts represent future cash payments to satisfy other long-term liabilities recorded on our consolidated balance sheet,
including $155 million for the short-term portion of these long-term liabilities.
(3) We are unable to reliably estimate the timing of future payments related to uncertain tax positions; therefore, $80 million of
long-term income taxes payable has been excluded from the preceding table. However, long-term income taxes payable
recorded on our consolidated balance sheet included these uncertain tax positions.
The obligations disclosed above do not include contractual obligations recorded on our balance sheet as current liabilities
except for the current portion of long-term debt. The expected timing of payment amounts of the obligations discussed above
is estimated based on current information. Timing and actual amounts paid may differ depending on the timing of receipt of
goods or services, market prices, changes to agreed-upon amounts or timing of certain events for some obligations.
Purchase obligations include all commitments to purchase goods or services of either a fixed or minimum quantity that
meet any of the following criteria: (1) they are noncancellable, (2) we would incur a penalty if the agreement was canceled, or
(3) we must make specified minimum payments even if we do not take delivery of the contracted products or services ("take-
or-pay"). If the obligation to purchase goods or services is noncancellable, the entire value of the contract was included in the
above table. If the obligation is cancellable, but we would incur a penalty if canceled, the dollar amount of the penalty was
included as a purchase obligation. Contracted minimum amounts specified in take-or-pay contracts are also included in the
above table as they represent the portion of each contract that is a firm commitment.