Crucial 2015 Annual Report Download - page 38

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36
Indefinitely Reinvested: As of September 3, 2015, we had $1.48 billion of cash and equivalents and short-term
investments, including substantially all of the amounts held by the MMJ Group, that were held by foreign subsidiaries whose
earnings were considered to be indefinitely reinvested and repatriation of these funds to the U.S. would subject these funds to
U.S. federal income taxes. Determination of the amount of unrecognized deferred tax liabilities related to investments in these
foreign subsidiaries is not practicable.
Operating Activities
Net cash provided by operating activities was $5.21 billion for 2015. Cash provided by operating activities was due
primarily to net income generated by our operations, adjusted for certain non-cash items.
Investing Activities
Net cash used for investing activities was $6.23 billion for 2015, which consisted primarily of cash expenditures of
$4.02 billion for property, plant, and equipment and $2.14 billion of net outflows for investments in available-for-sale
securities.
Financing Activities
Net cash used by financing activities was $718 million for 2015, which included outflows of $2.33 billion for repayments
of debt (including $932 million for the amount in excess of principal of our convertible notes), $831 million for the open-
market repurchases of 42 million shares of our common stock, and $95 million of payments on equipment purchase contracts.
Cash outflows for financing activities in 2015 were partially offset by inflows of $2.00 billion in aggregate from the issuance of
the 2023 Notes, 2024 Notes, and 2026 Notes, $291 million from the proceeds of sale-leaseback transactions, $125 million from
draws on our revolving credit facilities, and $87 million from term loans.
2015 Debt Activity
Throughout 2015, we reduced the dilutive effects of our convertible notes through conversions and repurchases. As a
result, we eliminated convertible notes that were convertible into approximately 37 million shares of our common stock. The
following table summarized our debt restructure activities in 2015.
Increase
(Decrease) in
Principal
Increase
(Decrease) in
Carrying
Value
Increase
(Decrease) in
Cash (Decrease) in
Equity Loss(1)
Conversions and settlements $ (121) $ (367) $ (408) $ (15) $ (22)
Repurchases (368) (319)(1,019)(676)(22)
Issuances 2,000 1,979 1,979 — —
Early repayment (121) (115)(122) — (5)
$ 1,390 $ 1,178 $ 430 $ (691) $ (49)
(1) Included in other non-operating expense.
Potential Settlement Obligations of Convertible Notes
Since the closing price of our common stock for at least 20 trading days in the 30 trading day period ended September 30,
2015 exceeded 130% of the conversion price per share of our 2032 Notes and 2033 Notes, holders of those notes have the right
to convert their notes at any time through December 31, 2015. For all of our convertible notes, we have either: (1) the
requirement to pay cash for the principal amount and the option to pay either cash, shares of our common stock, or any
combination thereof for any remaining conversion obligation, or (2) the option to pay cash, issue shares of common stock, or
any combination thereof for the aggregate amount due upon conversion.