Crucial 2014 Annual Report Download - page 40

38
Other Operating and Non-Operating
In 2014, we settled all pending litigation between us and Rambus, including all antitrust and patent matters, and entered
into a patent cross-license agreement. As a result, other operating expense for 2014 included a $233 million charge to accrue a
liability, which reflects the discounted value of amounts due under this arrangement. (See "Item 8. Financial Statements and
Supplementary Data – Notes to Consolidated Financial Statements – Contingencies" note.)
Other non-operating expense for 2014 included losses from the restructure of our debt of $184 million. Other non-
operating expense for 2013 included losses of $31 million from the restructure of our debt. (See "Item 8. Financial Statements
and Supplementary Data – Notes to Consolidated Financial Statements – Debt" note.)
Other non-operating expense included losses from changes in currency exchange rates of $28 million, $229 million and $6
million for 2014, 2013 and 2012, respectively. The loss for 2013 includes a $228 million loss for currency contracts to hedge
our yen-denominated obligations in connection with the MMJ Acquisition. (See "Item 8. Financial Statements and
Supplementary Data – Notes to Consolidated Financial Statements – Derivative Instruments" note.)
On August 15, 2014, ON Semiconductor Corporation acquired Aptina for approximately $433 million and we recognized a
non-operating gain of $119 million on the sale of our shares based on our diluted ownership interest of approximately 27%.
On May 15, 2014, Inotera issued 400 million common shares in a public offering at a price equal to 31.50 New Taiwan
dollars per share, which was in excess of our carrying value per share. As a result of the issuance, our ownership interest
decreased from 35% to 33% and we recognized a non-operating gain of $93 million in 2014.
Further discussion of other operating and non-operating income and expenses can be found in the following notes
contained in "Item 8. Financial Statements and Supplementary Data – Notes to Consolidated Financial Statements":
• Equity Plans
• Other Operating (Income) Expense, Net
• Other Non-Operating Income (Expense), Net
Liquidity and Capital Resources
Our primary sources of liquidity are cash generated from operations and financing obtained from capital markets.
Specifically, in 2014, we generated cash from operations of $5.70 billion and obtained $2.21 billion of proceeds from issuance
of debt. Cash generated from operations is highly dependent on selling prices for our products, which can vary significantly
from period to period. We are continuously evaluating alternatives for efficiently financing our capital expenditures, dilution-
management activities (including repurchases of convertible notes or equity) and ongoing operations. We expect, from time to
time in the future, to engage in a variety of transactions for such purposes, including the issuance or incurrence of secured and
unsecured debt and the refinancing and restructuring of existing debt.
On October 27, 2014, we announced that our Board of Directors authorized the discretionary repurchase of up to
$1.00 billion of our outstanding common stock. Any repurchases under the new authorization may be made in open market
purchases, block trades, privately negotiated transactions and/or derivative transactions, subject to market conditions and our
ongoing determination that it is the best use of available cash. We expect to use cash on hand to fund any repurchases. The
repurchase authorization does not obligate us to acquire any common stock.
We expect that our cash and investments, cash flows from operations and available financing will be sufficient to meet our
requirements at least through 2015.