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61
2015 Debt Restructure
In 2015, we consummated a number of transactions to restructure our debt, including conversions and settlements,
repurchases of convertible notes, issuances of non-convertible notes, and the early repayment of a note. The following table
presents the effect of each of the actions in 2015:
Increase
(Decrease) in
Principal
Increase
(Decrease) in
Carrying
Value
Increase
(Decrease) in
Cash (Decrease) in
Equity (Loss) Gain(1)
Conversions and settlements:
2031B Notes $ (114) $ (361) $ (389) $ — $ (24)
2033E Notes (7) (6)(19)(15) 2
(121) (367)(408)(15)(22)
Repurchases:
2032C Notes (139) (121)(415)(283)(10)
2032D Notes (166) (140)(492)(341)(11)
2033E Notes (60) (56)(107)(49)(1)
2033F Notes (3) (2)(5)(3) —
(368) (319)(1,019)(676)(22)
Issuances:
2023 Notes 1,000 988 988 — —
2024 Notes 550 545 545 — —
2026 Notes 450 446 446 — —
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.
Conversions and Settlements: During 2015, we had the following debt conversions and settlements:
2031B Notes: On July 23, 2014, we called for the redemption of our remaining 2031B Notes effective on August 22,
2014. Prior to such effective date, substantially all of the holders of our 2031B Notes exercised their option to convert their
notes and, in each case, we elected to settle the amount due upon conversion entirely in cash. These notes were cash settled in
2015.
2033E Notes: During 2015, holders converted a portion of our 2033E Notes, and we elected to settle the amounts due
upon conversion entirely in cash.
As a result of our elections to settle the amounts due upon conversion in cash, each of the settlement obligations
became derivative debt liabilities subject to mark-to-market accounting treatment. Under the terms of the indentures for the
above notes, cash settlement amounts for these derivative debt liabilities were determined based on the shares underlying the
converted notes multiplied by the volume-weighted-average price of our common stock over a period of 20 consecutive trading
days. Therefore, at the dates of our election to settle the conversion in cash, we reclassified the fair values of the equity
components of each of the converted notes from additional capital to derivative debt liabilities within current debt in our
consolidated balance sheet.