Crucial 2015 Annual Report Download - page 37

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In December 2014, we announced plans to add approximately 255,000 square feet of clean room space to our fabrication
facility in Singapore. This expansion facilitates efficient implementation of 3D NAND Flash production at the Singapore
facility and gives us the flexibility to gradually add incremental capacity in response to market requirements. Construction of
the additional space began in 2015 with initial manufacturing output likely in 2017. Subject to market conditions, we estimate
capital expenditures of approximately $1.93 billion in 2016 related to this facility.
Since the first quarter of 2015, our Board of Directors has authorized the discretionary repurchase of up to $1.25 billion of
our outstanding common stock, $250 million of which was authorized in the first quarter of 2016. Any repurchases under the
authorization may be made in open market purchases, block trades, privately-negotiated transactions, and/or derivative
transactions. Repurchases are subject to market conditions and our ongoing determination of the best use of available cash.
During 2015, we repurchased 42 million shares for $831 million (including commissions) in the open market.
We expect that our cash and investments, cash flows from operations, and available financing will be sufficient to meet our
requirements at least through the next 12 months.
As of 2015 2014
Cash and equivalents and short-term investments:
Bank deposits $ 1,684 $ 2,445
Corporate bonds 618 154
Government securities 449 136
Certificates of deposit 339 410
Commercial paper 255 107
Money market funds 168 1,281
Asset-backed securities 8 1
$ 3,521 $ 4,534
Long-term marketable investments $ 2,113 $ 819
As of September 3, 2015, $2.17 billion of our cash and equivalents and short-term investments was held by foreign
subsidiaries, of which $149 million was denominated in currencies other than the U.S. dollar. To mitigate credit risk, we invest
through high-credit-quality financial institutions and, by policy, generally limit the concentration of credit exposure by
restricting the amount of investments with any single obligor.
Limitations on the Use of Cash and Investments
MMJ Group: Cash and equivalents and short-term investments in the table above included an aggregate of $748 million
held by the MMJ Group as of September 3, 2015. As a result of the corporate reorganization proceedings of the MMJ
Companies entered into in March 2012 and for so long as such proceedings are continuing, the MMJ Companies and their
subsidiaries are subject to certain restrictions on dividends, loans, and advances. The plans of reorganization of the MMJ
Companies prohibit the MMJ Companies from paying dividends, including any cash dividends, to us and require that excess
earnings be used in their businesses or to fund the MMJ Companies' installment payments. These prohibitions also effectively
prevent the subsidiaries of the MMJ Companies from paying cash dividends. In addition, pursuant to an order of the Japan
Court, the MMJ Companies cannot make loans or advances, other than certain ordinary course advances, to us without the
consent of the Japan Court. Moreover, loans or advances by subsidiaries of the MMJ Companies may be considered outside of
the ordinary course of business and subject to approval of the legal trustee and Japan Court. As a result, the assets of the MMJ
Group are not available for use by us in our other operations. Moreover, certain uses of the assets of the MMJ Group, including
investments in certain capital expenditures and in MMT, may require consent of MMJ's trustees and/or the Japan Court.
IMFT: Cash and equivalents and short-term investments in the table above included $134 million held by IMFT as of
September 3, 2015. Our ability to access funds held by IMFT to finance our other operations is subject to agreement by Intel
and contractual limitations. Amounts held by IMFT are not anticipated to be available to finance our other operations.