Crucial 2014 Annual Report Download - page 44

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Contractual Obligations
Payments Due by Period
As of August 28, 2014 Total Less than
1 year 1-3 years 3-5 years More than 5 years
Notes payable(1)(2) $ 7,959 $ 976 $ 1,001 $ 1,601 $ 4,381
Capital lease obligations(2) 998 356 404 115 123
Operating leases(3) 116 22 32 25 37
Purchase obligations 1,869 1,724 117 12 16
Other long-term liabilities(4)(5) 1,060 335 411 206 108
Total $ 12,002 $ 3,413 $ 1,965 $ 1,959 $ 4,665
(1) Amounts include MMJ Creditor Installment Payments, convertible notes and other notes. Any future redemption or
conversion of convertible debt could impact the amount and timing of our cash payments.
(2) Amounts reflect principal and interest.
(3) Amounts do not include contingent lease payments.
(4) Amounts represent future cash payments to satisfy other long-term liabilities recorded on our consolidated balance
sheet, including $335 million for the current portion of these long-term liabilities.
(5) We are unable to reliably estimate the timing of future payments related to uncertain tax positions and noncurrent
deferred tax liabilities; therefore, $255 million in aggregate of long-term income taxes payable and noncurrent deferred
tax liabilities has been excluded from the preceding table. However, other noncurrent liabilities recorded on our
consolidated balance sheet included these uncertain tax positions and noncurrent deferred tax liabilities.
The obligations disclosed above do not include 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.
Under the Inotera Supply Agreement, effective on January 1, 2013, we are obligated to purchase for a three-year term
(currently through December 2016) substantially all of Inotera's output at a purchase price based on a discount from market
prices for our comparable components. The Inotera Supply Agreement contemplates annual negotiations with respect to
potential successive one-year extensions, and if the parties do not agree to an extension, the agreement will terminate following
the end of the then-existing term plus a subsequent three-year wind-down period. In the event of a wind-down, our share of
Inotera's capacity would decline over the three year wind-down period. We purchased $2.68 billion of DRAM products from
Inotera in 2014 under the Inotera Supply Agreement. The Inotera Supply Agreement does not contain a fixed or minimum
purchase quantity as quantities are based on qualified production output and pricing fluctuates as it is based on market prices.
Therefore, we did not include our obligations under the Inotera Supply Agreement in the contractual obligations table above.